Unfortunately, fraud exists in any commercial sphere, and the Forex market is no
exception. Even in 2020 sleazy Forex brokers continue to deceive unsuspecting traders, but the good news is
this is no longer the trend but is rather on the decline. There are many main reasons for this change.
Today, blacklists of Forex scam brokers are kept current and regularly published by Internet users. Our
portal is no exception. We have been collecting data about scam brokers for more than 10 years and we think
we know every dishonest company in the market.
Find below the 2020 up-to-date list of scam brokers as well as our explanation of some
scam aspects in the international currency market.
Scammers in the Forex Market: Who are They?
Forex scam brokers are not always represented by brokers themselves. They are most
likely to be individual players without companies but who position themselves as broker companies. Often
they are very experienced Internet users who can fabricate false information on the site they created.
The owners of such scam sites do not have a license and are therefore not properly
regulated. Sometimes they don’t even have basic knowledge of the Forex market. But for a novice trader who
does not have an education in economics or finance, not everything is so obvious.
For example, a person may visit a beautifully designed website, see catchy promises of
profit, and words or phrases like “spread” and “instant execution of orders”. That for the novice, could add
a semblance legitimacy to the dishonest website. As a result, a person signs up, makes a deposit — and here
is where the most interesting part begins — and there is the deception by technology. Blacklists of Forex
scam brokers mainly include three types:
1
Fly-by-night brokers
Until recently, this type of scam was the most prevalent. The idea is that a group of people (or
even one person) creates a site. Often it is just a landing page that urges the public to invest
and earn lots of money. This may also include PAMM accounts. The scammers don’t care what they
say, the main thing is to attract people and their money. As a result, they collect deposits
from traders and close the site, sometimes they declare a preplanned bankruptcy, and sometimes
they don’t make any announcements at all.
2
Forex bucket shops
This type of scam is more refined and requires more careful preparation, but the potential profit
of the scammer is also higher. In this case, they create a full-fledged platform that duplicates
the functionality of leading Forex brokers. The trader does not play on the world interbank
market, but with other traders registered only on their fraudulent site, or even with the
platform itself. Naturally, Forex bucket shops create impossible conditions so that the site
itself remains in the black while traders constantly lose their money.
3
Pyramid schemes
Perhaps this is the most famous type of scam that is used everywhere, not only in the foreign
exchange market. This type of scam is not about Forex brokers at all. It is about the company
positioning itself as a broker but, in fact, it only collects deposits from traders, often
without even faking activity on the interbank market. They just keep issuing empty promises and
slogans. Today, this type of scam is less common than others.
How to Identify Forex Trading Scams?
In the early 2000s, when the Forex market became accessible to everyone and was just reaching the peak
of its popularity, it was not easy to tell a scam broker from a legitimate broker in the interbank
market, especially if the novice trader was just starting out. But today, in the era of total
globalization and informatization, general information is easy to check on the Internet in a matter of
minutes. Today, it has become much easier to protect against fraudulent schemes of blacklisted Forex
brokers. 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 brokers 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 2020, 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 2020
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
In addition to the blacklist of fraudulent Forex brokers, we provide detailed information about each of
these companies. This is necessary so that the trader can inform his opinion based on the results of the
promised analysis. By clicking on the link next to the logo of the scam broker, you will find the terms
and conditions under which this company worked or continues to work. Check out what feedback he has; and
if he has already stopped working; then when, and for what reason.
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 2020, 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!
Is Forex itself a Scam? Test the Reliability of your Forex Broker
Based on many years of experience, hundreds of feedbacks, and an analysis of the 2020
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.
List of Three Recent Forex Trading Scammers
Since the blacklist of Forex brokers is updated frequently, it is important to regularly
monitor all updates. And if you see a company you work within the list, it is recommended that you
immediately withdraw all your funds to avoid the risk of losing them. Below you will find three Forex
Brokers that appear on the latest 2020 Blacklist.
The broker stopped fulfilling its obligations to traders. Deposits are frozen and impossible to
withdraw.
We do not recommend working with them. Most likely they are scammers.
770capital
The broker operated under the license of a non-existent regulator; their registration is not
confirmed.
We do not recommend working with them. Most likely they are a Forex bucket shop or pyramid
schemes
Adamant Finance
They don’t have a regulator; their user agreement does not contain the financial obligations
required before trading.
We do not recommend working with them. The feedback says they are a scam organization.
Please note!
Note that a company may get on the blacklist of Forex scam brokers due to various reasons, such as
problems with the license or site; lack of transparency or dubious conduct; non-existent regulator,
proof of defrauding traders.
Feedback on traders is the main criteria used to form the TOP of our ratings, and
brokers that are not included in the TOP-20 should raise doubts and be carefully checked. In addition to
scammers, there are brokers that provide low-quality services, which is why the trader’s success and
potential do not live up to his expectations.
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.
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.
Reviews
In order to leave your feedback on the broker's work, you do not have to be a Traders
Union client! Anyone can do it! You just need to register on the website and post your review.
Circle Markets seems to be nothing but a Forex trading scams. It's absolutely impossible to contact their office. They're kind of bottled up, I read about them on the web and decided not to sign up.
I got deceived here. Atiora agents would do anything for traders not to get their money back. They don't care about the law or undertaken obligations. I tried to withdraw my $200 profit, they declined it and sent me a list of violated agreement clauses. But I've never had such problems before... they change the conditions as they wish!
I've been an Alfa-Forex client for about 4 months. I've lost more than $1,000, but decided to go on and deposit $3,000 more to keep trading. The money was credited instantly, I won back my losses, but as soon as I ordered withdrawal of the whole amount, my request was declined with no reason at all. Later they told me there were no trading orders on my account, so I couldn't prove my profits. I have all the videos! screenshots! Run away from them not to get in trouble!
It's been more than 24 hours since I sent the money to my trading account. The sum was deducted from the credit card, but was never credited to the trading account. Customer care began to ignore my queries. Quite a strange set of circumstances, to my mind.
AlfaTrade is no brokerage, it's nothing but a bunch of shameless liars that cannot be trusted. All their promises eventually lead to losing money! I deposited 300 USD and traded up to 500 USD account balance. Then I tried to withdraw 150USD, and that was it. Those sharks began to blackmail me, demand further depositing, and threaten to block my account.
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.
Antony Robertson
Traders Union analyst
The Author of this Article about Forex Scam Brokers
Grant Adlington
Independenttrader-analyst
In 2008, he graduated from the London Institute of Banking and Finance, Department of Finance, Investment, and Risk;
In 2009, he became the youngest trader-analyst of Global Invest;
In 2010, he became an independent analyst in TD Ameritrade;
In 2011, he defended his Ph.D. thesis on Economics in the University of California-Berkeley;
From 2012, to 2018 he worked in different American and International broker companies;
From 2018, he has worked with Traders Union as an independent expert and trader as well as with other traders’ associations as a freelancer;
He has 12-years of experience of continuous trading in the Forex currency market.
FAQs Regarding Forex Fraud
1
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.
2
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.
3
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.
4
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.
