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Stock Scams | Actual Stock Brokers Blacklist

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Full List of Stock Trading Scams 2025

Updated: February 02, 2025

Oleg Tkachenko

Contributor

Reviewed by

Dr. BJ Johnson

Editor

Fact-checked by

Mirjan Hipolito

Cryptocurrency and stock expert

Table of Contents

Scammers in Stock trading
Top signs stock scam
Stock trading scams
Fraudulent schemes
If you have already suffered
How to avoid stock scams?
Expert opinion
Stock broker is trustable?
Trustable Stock brokers
Conclusion

Editorial Note: While we adhere to strict Editorial Integrity , this post may contain references to products from our partners. Here`s an explanation for How We Make Money . None of the data and information on this webpage constitutes investment advice according to our Disclaimer .

Unveiling the blacklist of stock brokers is essential for investors to steer clear of fraudulent schemes and safeguard their financial interests. This list acts as a beacon, signaling caution to individuals entering the market and underscores the significance of thorough research. Delving into the reasons behind brokers' blacklisting empowers investors to make informed choices, ensuring a secure and transparent trading environment.

Experts at Traders Union regularly update and expand the scam stock broker list so that traders can check suspicious companies. In this article TU experts also will tell you about the most popular stock fraud schemes that cause people to lose their money.

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Stock trading scams:

Broker	Year of scam
Ninety Nine	2023
Random Capital	2022
Rakuten Securities	2025
Abshire-Smith	2021
City Credit Capital (UK) Ltd	2021

What are the common Stock scams?

Some of the most common stock trading scams include pump and dump schemes, Insider trading as well as fake or unregistered brokers.
How do Stock scams work?

Fraudsters work in different ways. For example, they create a website, publishing false information about their merits and non-existent trading conditions, which attracts potential victims. Then the swindlers persistently offer traders to replenish their balance in order to test the functionality of their self-written terminal. As soon as the scammers realize that the victim intends to withdraw his earnings, they will promptly "drain" the deposit.
What if I got scammed on the Stock market?

If you have been a victim of fraud, take the following steps: report the fraud to local authorities or regulators, gather evidence of the scam, notify your bank of the fraud and provide all available information, seek legal advice.

Scammers in Stock trading: who are they?

Stock scammers are individuals or entities that engage in fraudulent activities in the stock market. They often use deceptive tactics to manipulate stock prices or trick investors into making poor investment decisions. These scammers can include pump-and-dump schemes, insider trading, Ponzi schemes, fake or unregistered brokers, and other forms of fraud. It's important for traders to be aware of these scams and to conduct thorough research before investing to avoid falling victim to them.

Top signs you might be dealing with a Stock scam

Lack of a license. One of the most obvious signals is a lack of regulation. If the company is in no hurry to show you its licenses or boasts of being controlled by offshore public-law institutions (for example, the Financial Services Authority of St. Vincent and the Grenadines), it is a reason to consider cooperating with the holding company. Also, the broker can misappropriate other people's authorization documents, so don't be lazy and check the company's database of regulators.
Unrealistic promises. If the company promises "golden mountains" within a few months and guarantees a stable profit without any risk and effort - run away, because what you have in front of you is 99% likely to be swindlers.
Own platform. Often fraudulent brokers offer their clients to trade on their own platform, telling them about its uniqueness and unimaginable advantages. With the help of a self-written platform it is easier for fraudsters to manage your transactions and conduct the trading process in a favorable way.
Excessive aggressiveness. Rude, illiterate and aggressive managers who persistently call you on the phone with requests (more like demands) to refill your balance immediately are a clear sign of deception. Deceivers don't know what the word 'quality service' means.
Inaccurate information on the website. For example, a broker attributes 10 years of flawless work to itself, but checking the domain name shows that the site was created only a couple of months ago and there are practically no reviews on forums about the company. Swindlers also like to appeal to unknown names, pretending to be revered experts, hide contacts or slip fake phone numbers to clients, place fake photos of pseudo-employees found on stock sites, etc. on the website.

Stock trading scams 2025

№	Overview	SCAM date
1	Infinity Futures	—
2	Ninety Nine	2023
3	Passfolio	2022
4	Random Capital	2022
5	Roofstock	2023

Most popular stock market fraud schemes

There are hundreds of types of stock market fraud with new ones emerging on a regular basis. Everything depends entirely on the resourcefulness of the fraudsters. Nonetheless, the old schemes continue to work and are being actively used by the criminals. Let’s review the most popular types of stock fraud schemes.

Pump and dump

Pump and Dump is one of the most popular fraud schemes with securities. It involves artificial inflation of the quotations on stocks against the background of false news and rumors.

The fraud is structured as follows:

1

The fraudsters register a company and offer shares at the exchange. The quotations are low, as the company is unknown;
2

An active promo campaign is carried out, using false information, publication of positive news, and expert opinions. The quotations begin to rise;
3

Against the background of promo campaigns and initial growth of quotations, the investors start acquiring shares. The price increases further, attracting new players;
4

At that time, the organizers of the fraud sell shares at a strongly inflated price;
5

At some point, it becomes clear that the promo campaign was based on fake news and the number of buyers falls. The price of the stock plunges.

Profit from this type of fraud depends on the scale of the promo campaign and speculative moods in the markets. If the campaign is local, it is most likely that the fraudsters will snatch a comparatively small amount. If the information is distributed to the largest markets, the gains could reach dozens of millions of dollars.

Penny stock fraud

Penny stocks are shares with a stock price of less than $5 per share. Penny stock fraud, just like Pump and Dump, is designed to play on people’s emotions. The only difference is that there is no promo campaign. Instead, the fraudsters acquire a share package in a big lot. After the stocks are acquired, their price starts to increase. Traders and bots react, buying the securities based on the trend, thus pushing the price up even more. At a certain moment, the fraudsters ‘dump’ the shares and their price plunges, while the users, who believed in the success of the securities, suffer losses.

Pyramid scheme

Pyramid scheme is one of the most popular types of scams involving securities and shares in particular. It involves earning profit from referring new clients to the project and using their funds to finance the profits of those who already invested into the platform.

The scheme looks as follows:

1
A project is registered, promising the clients high profits from investment into stocks and beneficial partnership program;
2
The first clients invest in the platform and start to promote it among their friends, colleagues and relatives. This forms the first level;
3
The clients referred by them invite new users, forming new levels. Part of the funds invested by them is used to pay the clients of a higher level and part – to the fraudsters;
4
The payouts continue as long as there is an inflow of new clients. As soon as it stops, the pyramid collapses and the investors lose money.

A Ponzi Scheme is a type of a pyramid scheme. The difference is that it is not the investors who attract new clients, but the project administration – promoters. The promoters are the ones who invite new clients and convince them to invest or reinvest in the platform.

Insider trading

Insider trading means trading based on the information from internal sources aka insiders. These people provide information about major events that could have an impact on the quotations of securities, for instance sale of the company, merger/acquisitions, business expansion, negative internal reports, etc. Insider trading is prohibited in the majority of countries. US SEC regularly uncovers such schemes and punishes the guilty parties.

Insider trading is a rather wide-spread phenomenon. As a rule, the fraudsters use two methods:

1

Providing insider information on the necessary asset with the objective of increasing its quotations. For example, an insider may report unexpected results of financial reporting, company plans on acquisition of competitors or other potentially valuable information, which will impact the stock price;
2

Sale of insider information, which is just what it is.

Earning a profit from alleged insider information allows the fraudsters to get money for information, which cannot be verified a priori. Due to this fact, this type of stock fraud enjoys great popularity among fraudsters.

If you have already suffered from the Stock scammers

If you have become a victim of fraud by scammers, it’s time for action. In this case, every minute counts, so act promptly and take the following steps:

Document everything! Keep records of all communications, transactions, and any other relevant information related to the scam.
Report the scam to relevant authorities, such as the Securities and Exchange Commission (SEC) in the United States or the Financial Conduct Authority (FCA) in the UK. Provide them with detailed information about the scam and your losses.
Contact your broker or financial institution. If you were working with a broker or using a financial platform, inform them of the scam and see if they can help recover your funds or provide any assistance.
Seek legal advice. Consider consulting with a lawyer who specializes in securities fraud or financial crimes. They can advise you on your legal options and help you recover your losses.
Warn others. Share your experience with others to raise awareness and prevent them from falling victim to similar scams.
Protect yourself in the future. Verify the credentials of any broker or financial institution you plan to work with.

How to avoid Stock scams? Top 5 tips

If you don't want to become a victim of a stock scam, stick to the following tips:

Before investing, research the company's background, financial health, and market reputation. Be wary of companies with little to no information available or those that promise unrealistic returns.

Ensure that the broker or financial advisor you are working with is properly licensed and regulated. Check their credentials with the relevant regulatory authorities.

Be cautious of unsolicited offers! Be skeptical of unsolicited emails, phone calls, or social media messages promoting investment opportunities. Scammers often use these methods to target victims. If you are guaranteed a high profit, it is most likely a scam. Remember that investing always involves risk, so no one can guarantee you a profit.

Avoid high-pressure sales tactics. Be wary of anyone who pressures you to make a quick investment decision or promises guaranteed returns. Legitimate investments carry risk, and there are no guarantees.

Take the time to understand the investment opportunity, including how the investment works, the risks involved, and the potential returns. If something seems too good to be true, it probably is.

Expert opinion

According to expert Andrey Mastykin, fraudsters among stock brokers are not a rare phenomenon. Swindlers use different methods of scamming: some do not bother themselves with cunning schemes and simply block users' accounts as soon as they deposit the required amount, and some create author platforms and provide so-called 'analysts'.

Make sure the broker is licensed, the site has an SSL certificate, and traders have written reviews on independent forums to avoid fraudsters. Also check whether the chosen company is not included on blacklists. These precautions will help you avoid mistakes and save money.

Author, Financial Expert at Traders Union

How to choose a trustable stock broker?

Fortunately, there are not only fraudsters, but also honest companies interested in the success of their clients. To choose a trustable stock broker you can follow such steps:

Top Trustable Stock brokers

9.4/10

Go to broker

Your capital is at risk.
Via eOption's secure website.

Minimum deposit:

Review

The eOption broker (eoption.com) is an American stockbroker headquartered in Glenview, Illinois. It has been operating since 2007 and is a member of FINRA (CRD#: 7297/SEC#: 8-21765) and SIPC. It specializes in options trading and also acts as an intermediary in trades involving the popular securities classes. The company offers low trading commissions, super-fast execution of orders, and modern platforms with an advanced set of analytical tools. In 2020-2021, eOption was recognized as the best options broker by several resources such as Investopedia, The Tokenist, Benzinga, Investormint, and NerdWallet.

Pros/Cons

•Low commissions for options trading — $0.10 per contract plus $1.99 per trade.

•No minimum deposit requirements for cash trading accounts opened by US residents.

•FINRA membership and the protection of clients’ funds are available through Securities Investor Protection Corporation (SIPC).

•Access to professional trading platforms such as DAS and Sterling Trader Pro are developed by third-party software developers for the proprietary eOption terminal.

•An affiliate program with high rewards.

•Compensation for commissions for funds or assets from other brokerage firms and institutions transfer.

•Prompt support by phone and online chat in the trading platform during company business hours.

•The narrow range of choice of investment solutions to generate passive income.

•You cannot trade Pink Sheet and Bulletin Board stocks.

•There is no online chat on the company's website.

9.2/10

Go to broker

Your capital is at risk.
Via Wealthsimple's secure website.

Minimum deposit:

Review

Wealthsimple is a robo-advisor (algorithmic trading robot) that was founded in 2014 in Canada and also provides services in the UK. It is regulated by the UK and Canadian Securities Commissions, including the FCA (747883) and IIROC, and participates in the Financial Services Compensation Scheme (FSCS) as well as the Canadian Investor Protection Fund (CIPF). Wealthsimple serves over 1 million investors and manages £3 billion of investments.

Pros/Cons

•No minimum deposit requirements for the basic account.

•Top-notch security and regulation by reputable securities commissions and participation in compensation schemes.

•Ability to earn income passively, i.e., without having to actively trade yourself.

•No additional charges for account maintenance, deposit, withdrawal, and use of a mobile application.

•A simple principle for charging commissions for portfolio management is a fixed percentage of the deposited amount.

•Possibility to open accounts not only in pounds sterling but also in Canadian dollars.

•Detailed statistics on commissions and rebalancing of the formed portfolios, which are available in the personal cabinet on the website and in the mobile application.

•Registration is only available to UK and Canadian residents.

•The site does not have an online chat for prompt communication with the support team.

•The formation of an individual portfolio by an investment specialist is available when depositing £100,000 or more.

9.1/10

Study Review

Minimum deposit:

$250

Review

The Ally Bank broker is part of Ally Financial Inc., which is an American holding company. The original company was created in 1919 by the General Motors automobile corporation to conduct activities with its auto parts suppliers and associated automobile dealerships. In 2014, Ally started offering banking products, and since 2017, it has also offered brokerage services. Currently, it operates solely as an online bank and brokerage firm and has no physical branches. It does, however, offer favorable terms of cooperation at consistently competitive rates with professional round-the-clock support. The company's services are used by more than 8.1 million customers globally.

Pros/Cons

•It has official licenses for banking, dealer, and brokerage activities from reputable US regulators.

•A wide range of assets is available such as currency pairs, metals, securities, and options.

•There is an opportunity to invest in diversified portfolios for passive profit.

•The company works only with US tax-paying residents.

•On the broker's website, there is no training on trading in various financial markets, nor is there a Forex glossary of terms.

•There are high commissions for withdrawing funds and the company does not compensate customers in any way.

•Only registered users can ask a question in the online chat.

•There is a time-consuming procedure for opening an account, which in some cases takes up to two weeks.

Conclusion

Choosing a stock broker should be done carefully, as it concerns not just your money, but also wasted time. Unfortunately, there is always a risk of running into cheaters whose main goal is to get as much money out of traders as possible. Here are some obvious signals that indicate scammers: problems with licenses and documents, many gaps in information, poor or non-existent financial indicators, negative or suspicious reviews on the web, too low commissions, frequent and persistent calls from managers.

If you notice at least a few of these "red flags" - it is better to search for a more reliable company, as cooperation with dubious intermediaries who promise quick and easy money will only bring you disappointment and problems.

Scam companies reviews

Crowd Partners.com European Offshore Trading Company (UK) Dreyfus Corp Floris Bank MyTradeFX Capital FX Grupo Floxo Group Hoffman.com Insta Credit Finance