Forex Scammers – How to Identify a Dishonest Broker

Mar 21, 2021 Blog

Forex Scammers – How to Identify a Dishonest Broker

Often beginners are afraid to start trading for fear of being cheated. Usually such fears do not arise out of the blue, because Forex is a fairly popular method of making money, and, like everything popular, it attracts attention not only to honest traders, but also to those who want to earn not quite legally. In this article, we have gathered all the most important information about scam brokers. You will learn what kinds of scams there are, how to identify a dishonest company and how to choose a real broker for a long partnership. 

What scammers are like 

  • Signals from the broker. A broker offers traders to buy signals from him which indicate the time when a trader can enter the market and make a profit. A trader can find the moments for making deals by himself – if he is an experienced one. That is why such a type of fraud is usually meant for beginners who believe in the signal correctness and want to make a profit. In fact the signals turn out to be false, while the trader keeps the lost money. 
  • Hidden commissions for the service. Usually it is a fixed sum or just a percentage of the sum to be processed for transferring of funds or opening/closing of deals. As a rule, the terminal does not track the funds precisely, and only counting your money in a separate order, you can see the “drain” of the money for the transactions. But it is worth mentioning that honest brokers can also charge commission, but they usually prescribe it in a separate paragraph of the contract between the company and the trader. 
  • Withdrawal refusal. One of the most widespread types of fraud. The refusal in payments could be explained by different excuses: incomplete verification procedure, problems with electronic systems or payments that complicate the process of applications processing, server hang-up or simply bankruptcy. All of these factors can also indicate that traders’ money may be used for the company’s purposes, as is often the case with pyramid companies. 
  • Problems with service. Most often it is some malfunction in the software or servers. For example, if a trader trades using scalping strategy and sees that the deal must be closed immediately in order to gain profit, the broker, in his turn, can prolong the deal closing for several seconds under the pretence of “hanging software”. This can significantly affect the situation and bring the trader a loss and the broker – an illegal profit, because the broker usually keeps the difference from small transactions made within the company. 

If you want to find a reliable broker, use