Forex trading scams - List of scam brokers 2024

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We have prepared a full list of brokerage companies that will most certainly cause your losses, should you choose to work with them. These are unreliable companies without a brokerage license that show all the signs of being scam projects. Before deciding to work with a broker, see what we managed to learn about its operation. You can check them all in the section Blacklist of Forex Scam Brokers 2024 or look for the specified broker in the following search box:

Check the broker you are interested in:

Forex trading scams:

Broker

Year of scam

24FX

2014

24options

2018

4XP

2012

770capital

2021

Absolute Markets

2022

How to avoid Forex trading scams in 2024? Check your broker in our Black list before opening an account. The full Forex scammers list in 2024 you should know to avoid mistakes.

Forex trading has exploded in popularity in recent years due to its high liquidity and potential for high returns. However, the decentralized and complex nature of the Forex market also makes it ripe for scams and fraudulent activity. Forex scams come in many forms but often involve promises of unusually high returns, false advertising about trading conditions, or outright theft of traders' funds. Scam brokers may appear legitimate on the surface but use various tricks to take advantage of unsuspecting traders.

This article provides an updated list for 2024 of Forex brokers that have been identified as scams or are suspected of fraudulent behavior.

Forex trading scams - List of scam brokers | Fake Trading Website | Forex brokers blacklist

Below you will find all the information.

Scammers in the Forex Market: Who are They?

Can You Get Scammed In Forex?

Forex scammers come in many forms but often fall into a few common categories:

1

Unregulated, fly-by-night brokers that prey on novice traders. These scammers open "boiler room" operations designed to bring in as many deposits as possible before shutting down.

2

Ponzi/pyramid scheme operations that use deposits to pay withdrawals until the scheme collapses. These scams lure in victims with promises of unusually high, consistent returns.

3

Bucket shops - Illegal brokers that take the opposite side of a client's trade and profit if the client loses. They essentially 'bucket' the trades rather than executing them on the open market.

4

Fake trading websites (Phishing) - Scammers may impersonate legitimate brokers

5

Self-proclaimed "gurus" who advertise foolproof trading strategies for expensive seminars or software that do not live up to hype.

Other sophisticated scams include Bid/Ask spread scam, signal sellers, withdrawal fraud, “trading bots” scams. You can find a detailed overview of these types of scams in our article "How to Avoid Forex Trading Scams?"

Top 3 signs you might be dealing with a Forex scam

Forex scams are a dark side of the trading world, and they can catch even savvy investors off guard. If you're navigating the Forex market, it's essential to know the red flags that suggest you might be dealing with a scam. Here are the top three signs to watch for:

Unbalanced claims

If a Forex service or trader promises high returns with little or no risk, be sceptical. No financial investment is risk-free, and Forex trading is no exception. Extremely favourable claims often serve as bait to lure in unsuspecting investors. Always remember: if it sounds too good to be true, it probably is.

Requests for money

Be cautious when a trader or service asks for money upfront, especially if they're insistent or use high-pressure tactics. Scammers will often ask for fees for "exclusive" trading tips or insider information. A reputable trading platform or service will have transparent pricing and will not demand upfront payments for promises of incredible returns.

Lifestyle pictures or testimonials from "successful" traders

Social media platforms are awash with images of "successful" traders living luxurious lifestyles, complete with flashy cars and exotic vacations. Often, these are coupled with testimonials claiming incredible profits in short periods. While it's possible to achieve success in Forex trading, such over-the-top portrayals are often a tactic to entice people into a scam.

Types of common Forex scams

Forex scams come in various shapes and sizes, each designed to separate you from your hard-earned money. Here's a breakdown of some common types of Forex scams you should be aware of:

Forex mutual fund (PAMM) scams

PAMM stands for "Percent Allocation Money Management." In this scam, fraudsters promise to pool your money with other investors and manage it professionally. The catch is that these so-called "managers" often lack the qualifications and regulatory oversight, resulting in significant losses for unwary investors.

EA/trading robots scam

Automated trading robots and Expert Advisors (EAs) promise easy profits with minimal effort. Scammers sell these bots as foolproof methods for raking in profits. However, most of these robots underperform or are outright fraudulent, leaving you with an empty wallet.

Trading signals Forex scams

Trading signals are recommendations for executing a trade at a specific time and price. While legitimate trading signal services exist, many scams promise high success rates without any substantiation. These fraudulent services often use flashy marketing and fake testimonials to lure in investors. Once subscribed, you may find that the signals are randomly generated or copied from other sources, leading to significant financial losses.

“Holy grail” Forex scams

Some fraudsters claim to have discovered the ultimate trading strategy or system that promises near-perfect results. They package this "holy grail" in an educational course or software and sell it to unsuspecting traders. Always remember that trading involves risks, and no strategy can guarantee profits 100% of the time. Be cautious of anyone selling a foolproof system.

Guaranteed returns scams

The promise of guaranteed returns is one of the oldest tricks in the book. Scammers will claim to have a secret formula or insider information that ensures you'll make a profit. However, Forex trading is inherently risky, and no one can guarantee returns. Steer clear of anyone making such promises.

Price manipulation

Unscrupulous brokers may manipulate market prices to trigger stop-loss orders or to prevent positions from becoming profitable. This is a more insidious form of scam as it involves a breach of trust and manipulation of trading conditions. Always opt for a regulated broker with a good reputation to avoid falling victim to this type of scam.

Unusually high leverage

Some brokers offer exceedingly high leverage to attract traders looking for quick profits. While leverage can amplify gains, it also increases the risks of substantial losses. Scam brokers offering high leverage usually have other hidden terms and conditions that work against the trader.

Unsegregated client bank accounts

In a legitimate trading operation, client funds are kept separate from the broker's operating funds in segregated bank accounts. Scam brokers might not follow this practice, putting your money at risk if the company faces financial difficulties. Always check the broker's regulatory status and fund segregation policies before opening an account.

How to Identify Forex Trading Scams?

The massive size and nature of the Forex market has long attracted a variety of scammers, fraudsters, and cybercriminals looking to profit off unsuspecting traders. While increased regulation has helped improve the situation, traders still need to exercise caution and be on the lookout for potential scams. The easiest way is to study our site because we have already saved you time and selected both reliable brokers and scammers among all companies. All you have to do is simply check our ratings lists.


But if you need more details, we’ll tell you about the main practices by scammers. Here are some:

  • They promise high profits

    Such promises are a sure sign that the Forex broker is a scam artist because no legitimate broker can guarantee high profit to the trader. Moreover, according to statistics, only 11-25% of novice traders eventually become professional players in the foreign exchange market and begin to make good money.

  • They say there are no risks

    This is also a clear sign of a scam because the success of the trader does not depend on the broker. The key role is played by the strategy of the trader, that is, how he diversifies the risks. For example, a legitimate broker may share a deposit between several currency pairs or use auto trading. It is impossible to completely eliminate the risk of Forex.

  • No regulation

    By law, the activities of legitimate Forex brokers must be regulated by an authorized body — either a public or private licensing company. You can find the information about regulators on the broker’s website and check it on the website of the regulator. This is open information and the validity of the license can be checked in a matter of minutes. Naturally, the activities of blacklisted companies are not regulated.

  • Unprofessional practices

    This can include many things, such as cold calling. If you are contacted by telephone, telegram or in any other way by a Forex broker that you have never heard of, and he offers you cooperation, you know for certain that this is a scammer 100%. Also, scammers always insist on you making a payment “here and now”. They speak about the high qualifications of their manager’s (PAMM accounts), but they can only confirm their profitability with excel tables.

  • Dubious strategies

    Forex brokers on the blacklist often use little-known or generally unknown trading terminals (that is, something other than these reputable terminals: MT5, MT4, LIBERTEX, QUIK, TRANSAQ, CQG, or ROX). In reality, in 2024, the broker does not need to create a terminal because using either one of the above is simple and reliable for both the trader and the broker.

  • Dubious tools

    A broker who focuses on PAMM accounts and binary options, promising tremendous profits, is very likely to be a scammer. These are also effective tools, but they cannot be the main source of income for a successful trader. And certainly, PAMM accounts do not guarantee a high income.

  • Fake ratings

    Many Forex brokers that are on blacklists like pointing out their top positions in some dubious ratings poll. But they show only ratings present on their site, or on a third-party resource that actually belongs to the same person and has no weight in the Forex market.

  • SSL-certificate

    This detail is critical but many traders do not pay attention to it. An SSL certificate is a digital signature of the site, which guarantees the security and confidentiality of the connection to the server. That is, when on this website the chance of getting malware or spyware that will transfer your data to third parties is minimal.

Blacklist of Forex Scam Brokers 2024

Below there is a table that is updated in real-time. Its purpose is to warn novice traders about scam brokers who are not to be trusted.


You need this blacklist because, despite the confirmed scam schemes, some Forex bucket shops and pyramid schemes continue to function successfully.

Information

Along with our blacklist of untrustworthy Forex brokers, we offer in-depth details about each of these companies. This allows traders to make informed judgments based on our investigative findings. By clicking the link next to a fraudulent broker's logo, you can see the terms and conditions they operated under previously or currently. Review their customer feedback and complaints. If they've ceased operations, note when that happened and why.

Company

Overview

SCAM date

1

1Market

2

24FX

2014

3

24options

2018

4

4XP

2012

5

770capital

2021

6

Abshire-Smith

7

Absolute Markets

2022

8

ACFX

2016

9

Adamant Finance

2021

10

AG-Markets

2022

Why Forex Brokers Are Regulated and Why Do We Need to Know?

We have already briefly mentioned the regulation of Forex brokers. Here are more details about it. The global (interbank) foreign exchange market has a legislative base. This legislative framework defines a special category of regulatory companies. They are internationally licensed companies operating in the global currency and securities market. Their task is to monitor and analyze other market players for compliance with legal standards and financial security requirements. Simply put, the regulator checks whether the broker is legally operating in the Forex market and whether he is complying with the Terms and Conditions of the regulator. If they are not, then they may be fraudulent.

Information

Naturally, the vast majority of Forex brokers that are on the blacklist cannot have a regulator because their activity is illegal. On the other hand, the work of Forex bucket shops and pyramid schemes often has legitimate reasons, but the regulator will easily understand that these are fraudulent schemes and he simply will not license such a company’s activity. Thus, the broker's regulation is an important guarantee for the trader because it guarantees that this broker is honest and reliable; and he places orders on the interbank market and fulfills payment obligations.

Each regulator has its methods and tools for checking Forex brokers. In 2024, the brokers must meet several strict requirements. They are supposed to have: full transparency of financial transactions; a certain amount of money in their account; a completed set of documents required by law; and an official site that meets all technical safety requirements. Moreover, from the point of view of jurisdiction, the regulator can be local (operates within the country) or international (operates globally).

Here are the main international Forex regulators:

IFSC

Belize International Financial Services Commission;

CySEC

Cyprus Securities and Exchange Commission;

FSC

Mauritius Financial Services Commission;

FCA

UK Financial Conduct Authority;

FCSA

South Africa Financial Sector Conduct Authority;

SCB

Securities Commission of the Bahamas.

Please note!

Scam brokers from the black list can deceive traders for the very reason that their activities are not regulated by anyone! Watch out for fake regulators. Scammers create made up regulator names and logos to appear legit. Verify the regulator is real.

Test the Reliability of your Forex Broker

Based on many years of experience, hundreds of feedbacks, and an analysis of the 2024 blacklist of Forex brokers, specialists from the Traders Union prepared a simple test that you are invited to take. It allows you to determine whether you can trust the Forex broker you have chosen. The test consists of ten questions, and it will take you just a few minutes to complete it. In return, you will get unbiased information on the reliability of your broker.

Question

Description

Question 1

Does your broker’s official website have an SSL certificate?

Question 2

Does your broker use one of the following terminals: MT5, MT4, LIBERTEX, QUIK, TRANSAQ, CQG, or ROX?

Question 3

Is your broker regulated by one of the following organizations: IFSC, CySEC, FSC, FCA, FCSA, SCB?

Question 4

Does your broker have more than 20 trading tools?

Question 5

Does chat support respond quickly?

Question 6

Is your Forex broker widely known; and if so, is he included among our ratings for TOP Forex brokers?

Question 7

Did you read feedbacks on this broker; and if so, are they mainly positive?

Question 8

Does the broker offer additional services (for example, auto trading)?

Question 9

Does your broker avoid making cold calls to you requesting deposits or participation?

Question 10

Can you make a deposit using standard methods — Visa/Mastercard, Wire Transfer, PayPal, Skrill?

How to interpret test results:

  • If you answered “Yes” to all 10 questions, then this is a reliable broker, and you can work with him.

  • If you got 7–9 “Yes” answers, then the broker is most likely reliable, but we recommend reading additional information about him.

  • If you have only 5-6 “Yes” answers, then we recommend that you study the feedbacks on this broker in detail as it is doubtful that he is reliable.

  • If you have less than 5 “Yes” answers, then Traders Union does not recommend working with this broker because it is very likely that he is a scammer.

Information

In addition to the blacklist of Forex scam brokers, the Traders Union is constantly updating the independent rating of reliable brokers, which is compiled based on trading feedback. Follow this link to learn more about top brokers and get the opportunity to work with reliable, time-proven companies that you can trust.

How do I know if a Forex broker is legit?

Are you wondering how to tell whether a Forex broker is legit? There are several ways to go about doing so, such as the following:

  • Check broker's regulatory info (license types): One of the top ways to know if a Forex broker is legit is by checking the broker’s regulatory info. To do so, you can simply use FINRA’s BrokerCheck Program. This program is free and allows investors to research and verify various information in terms of brokers of all kinds.

  • Learn broker’s supported countries: Next, you need to take the time to learn the broker’s supported country. This is because all investment platforms have their own unique rules and regulations. This causes some brokers to be unavailable in certain areas as each country has its own unique restrictions and mandates in terms of finance brokers.

  • Check the regulator’s website to prove license: After that, you will need to make sure the regulator’s website to prove the broker has been properly licensed. While some regulators may have a convenient list in terms of who they regulate, you may need to reach out to ask about your chosen broker specifically.

  • Read other client’s reviews: Lastly, you should take some time to read client reviews. To ensure that there are relatively honest reviews, you may want to search sites such as Yelp and Google. This is because it’s possible for scammers to pay for good reviews on their own site, but when searching neutral spaces, you will get a chance to see the good,bad, and ugly reviews, as well as the positive ones. When reading the reviews, make sure you check for pros and cons to see which issues arise the most.

Feedbacks of Traders Union’s Participants on Scam Brokers

The Traders Union has thousands of traders around the world who regularly share relevant information. It is very beneficial. Often honest feedback can save hundreds of novice market players from investing in fraudulent schemes and losing their deposit. This is an avalanche-like process — when a scammer loses his status and there is no longer an influx of new traders, he will inevitably curtail his activity.

Feedbacks of Traders Union’s Participants on Scam Brokers

Please note!

Feedbacks are written only by traders who have already worked with specific brokers. Therefore, all negative feedbacks are unbiased, they include descriptions of real cases of interaction and fraud on the part of brokers. The Traders Union analysts additionally check the information provided in the feedback, so that we do not have biased or false feedbacks as those are immediately deleted.

The value of feedback on Forex brokers is determined by the fact that, unlike statistical data and anonymized rating tables, it is live feedback from real people who share their personal experience with you. The feedbacks on independent websites are always valued above any other indicator, and experienced traders make their choice based on them. In the vast majority of cases, this eliminates the possibility of running into a scammer.

The Traders Union’s Expert Opinion - How to Avoid Becoming a Victim of a Forex Scam

Previously, the trader had to carefully analyze the top market players by key parameters, and even then, there were no guarantees. Today it is possible to quickly check all indicators: the SSL-certificate of the site; registration number of the regulator; and trader feedbacks on independent sites. Also, many trading associations offer blacklists of Forex brokers, which also help to avoid mistakes.

Anton Kharitonov

Anton Kharitonov

Financial expert and analyst at Traders Union

Top 5 Regulated Forex Brokers

TU experts have selected 5 fully regulated Forex brokers that have positive feedback from clients. Working with regulated brokers is the main rule to avoid forex scams.

Regulation Minimal Deposit
Admirals FCA (UK), ASIC (Australia) $1 Read Review Open an Account
Tickmill FCA (UK), CySEC (Cyprus) $100 Read Review Open an Account
FxPro FCA (UK), CySEC (Cyprus) $100 Read Review Open an Account
RoboForex FSC (Belize), CySEC (Cyprus) $10 Read Review Open an Account
Exness FCA (UK), CySEC (Cyprus) $1 Read Review Open an Account

FAQs Regarding Forex Fraud

1

How do I know if a trader is legit?

To find out if a trader is legal, go to the official website of a trade association and check if he is on the list of members of this organization.

2

What is the safest forex broker?

Reliable brokers have full order with regulation, long work experience and have positive feedback from traders. A careful study of the commercial offer will help you finally decide on the choice.

3

Is MetaTrader 5 legit?

MetaTrader 5 is legal. The trading platform has a simple and functional interface.

4

What is a blacklist of Forex scam brokers?

This is an anti-rating system for the Forex market, which includes brokers whose activities look like fraudulent schemes: Forex bucket shops, fly-by-night websites, or pyramid schemes.

5

What are the risks when working with brokers from blacklists?

The activity of scammers is not regulated by anyone, so they can perform any actions with your transactions - interrupt, freeze and reset them. Scammers often do not pay at all or do not return deposits.

6

How not to get deceived by a scammer?

Compare the broker against the criteria given in this article; read feedback about it. The blacklist of Forex brokers will provide you with an up-to-date list of companies that are not recommended for cooperation.

7

Blacklisted brokers are unreliable; where do I find reliable ones?

For this, the Traders Union has an independent rating of Forex brokers based on real traders’ feedback. This rating is dynamically updated and provides up-to-date unbiased information about companies that are profitable and reliable to work with.