List of 1000+ fraudulent Forex brokers and how to identify fraudulent tricks in Forex from IB circles to manipulated Forex floors
A lot of press and media reports about Forex scams and lost money during early 2021 are partly true and partly false. The right part is that the problem of scams in the Vietnamese Forex market is very common, appearing everywhere on Facebook, Zalo… The wrong part is that the media equates the concept of Forex investment and Forex fraud into one.
To discuss this issue as completely as possible, I would like to divide the content into three parts:
Part 1: Popular Forex scams (more than 20+ types of scams I’ve clearly observed)
Part 2: Is Forex Investment a Scam?
Part 3: List of fraudulent Forex brokers that are named by the media
Table of Contents
- 1 Forex Scam Tricks
- 2 Is Forex Investment a Scam?
- 3 Latest scam Forex brokers list
Forex Scam Tricks
Forex in Vietnam is an unlicensed, unsupervised form of investment, so it can be seen that this is a very easy environment to be used to seduce and scam (similar to the multi-level guise that used to be rampant. previous years). Forex novices are the most susceptible to scams.
Here, I temporarily divide into several groups of Forex scams, according to the stage of investor exposure to the market, including:
- Group of Brokers (Introducing Broker, IB)
- Fraudulent Forex floor group
- Forex floor group has been stripped of its license
- The Forex broker group has a license, but manipulates the floor
- Fraudulent Forex Broker (Scam IB)
It’s not difficult for you to see hundreds of IBs on forums, Facebook, Zalo … dressed up, taking pictures to show off their cars, showing off their winning accounts with a few thousand dollars. Besides, there are also IBs that give investors up to $200 when opening an account.
This is a form of IB with fairly recognizable signs of fraud.
Firstly: forex4you is a scam Forex broker named by the national television station
Second: the promotions for newbies are implemented by many Forex brokers, but the biggest program (I have ever met) is only about 50 USD. Larger value programs require a lot of conditions to be able to apply, it is not easy to get money from others.
Fraudulent IBs often deploy tricks including:
- Create customer funnels via phone, Facebook, Zalo, Telegram… to create a group to share Forex trading experience, sell trading signals.
- After having a “prey” funnel, they will use a Demo account with a winning transaction to take pictures, post prestige posts, and hit the greed of team members directly.
When a member opens a trading account, they will guide new members who do not know anything about Forex to use a scalping strategy with high volume, while this is an extremely risky strategy, only suitable for investors. have several years of trading or more! The purpose of this is to make them earn more commissions, and the faster you burn your account
Not talking about risk: did you know that more than 90% of Forex traders lose (the actual number could be more). It is not easy for an IB who has just entered the market to be able to win continuously like that!
Show off your easy money: out of the remaining 10% of profitable investors, the majority earn less than $100 a day!
Some people wonder why some traders can withdraw money when dealing with fraudulent IB groups, this is a very sophisticated trick. According to VTV, these groups have tycoons behind them and have real trading accounts on international exchanges, so they can deposit and withdraw money through the admin account.
In addition, some of the signs of a Forex scam IB you should look out for include:
Too young to show skills and trading strategies:
- Newbie bait courses
- Matching trading orders with too large volume
- Trading with too strange assets
- Trade with stop profit – hold loss strategies
- Debug Promises – Ask customers to deposit more money into their accounts
Forex broker scam
These are no-name Forex brokers, which were just established in the last few years to scam domestic traders. The tricks of today’s fraudulent Forex brokers are very sophisticated, simulating a reputable Forex broker from offshore business registration, registration and providing MT4/MT5 platforms for investors, counterfeiting licenses from CySEC , ASICs…
The purpose is to lure investors to deposit money into their accounts, manipulate trading orders to make them burn their accounts quickly.
Forex broker license revoked
In order to maintain a license to operate from supervisory authorities such as FCA, NFA, ASIC or CySEC, Forex brokers are periodically checked to see if they are in compliance with the rules of the business, and in fact have been There are many Forex brokers who have been warned, even stripped of their operating license due to price manipulation, or have adverse behaviors for investors such as:
- Do not allow customers to withdraw money according to regulations
- Widen the spread, make customers lose a lot of money to benefit
- Making it difficult for traders when having a dispute
- Being warned by the watchdog
- Do not allow traders to withdraw money
- Fake watchdog license
- Implement unreasonable policy towards traders
- Operating without a license
- Generate many unreasonable fees
Some of the Forex brokers that lost their licenses in the past year include:
24option, TradeATF, Magnum FX and F1Markets were stripped of their licenses by CySEC for using fake information of celebrities for PR
Finteractive Limited was stripped of its license by the FCA because it did not inform investors about the risks when investing in CFDs.
RealFXPro has been stripped of its license by the FCA for building many fraudulent websites
The Forex broker group has a license, but manipulates the floor
These are licensed Forex brokers, but traders strongly condemn the behavior of manipulating the trading results of customers (through spreading spreads, suspending trading orders, prolonging transaction time causing slippage).
What to do when you have missed registration to deposit money into your account at a scam Forex broker
If you have unfortunately deposited money on a scam Forex broker, the most practical thing you need to do is stop trading, find a way to withdraw your money (if possible), and raise a warning to the community so that those who do not have access to it. Others are not experiencing the same situation as you.
Is Forex Investment a Scam?
Is Forex Investment a Scam? As you can see above, there are indeed too many Forex scams, and this problem is not only happening in Vietnam but also in the world.
The best way to protect yourself is still to choose a reputable, licensed and regulated Forex broker that has been in the industry long enough above all else. You should consider many times before invitations to groups to share trading experience, to donate too much money … in this world, free cheese is only available on mouse traps.