Yes, you can make money trading forex, CFDs, and cryptocurrencies. However, most people who trade these risky assets lose money at first on trades until they learn how the markets work and find their own tricks that work for them.
You wouldn’t know this, however, talking to the brokers on this list. Scam brokers lure in customers with false promises of guaranteed returns. The following scam brokers make claims that can be tempting but often end up emptying their clients’ wallets instead.
Safe trading means doing thorough research before opening an account with a broker. This means checking for a license, reading what regulators have to say about brokers, and looking for signs of reliable and scam brokers. The ReportScamOnline team has extensive expertise on signs of scam brokers and has compiled this collection of scam broker reviews to help consumers make the right choice.
Why Are There So Many Broker Scams?
We are doing more things online–learning, working, shopping, meeting new people—than ever before. Similarly, more people are trading online. Gone are the days when people who wanted to invest money felt it was necessary to make an appointment and see a broker in person. People are less nervous about using online financial services, but that doesn’t mean there is no danger.
In fact, financial scams have increased substantially. CNBC reports that Americans have lost $500 million in online scams since COVID-19 began. Forex scams and crypto scams have topped the list in cybercrime. Financial scams would have increased anyway simply due to greater online activity, but COVID and increasing financial uncertainty have put fuel on the cybercrime fire.
This doesn’t mean that no one should trade online. As experts on online financial services, ReportScamOnline recognizes that there are many reputable online brokers that provide returns on investments. However, the number of forex scams and crypto scams is greater than that of legitimate opportunities and consumers need to research brokers thoroughly first.
What Are Some Signs of Broker Scams?
The following are common signs of broker scams:
- Not regulated
- Aggressive tactics
- Promises huge returns
- No contact information
- High fees
- Poor communication
- Does not allow withdrawal
Of all of these signs, the one that most accurately predicts whether a broker is a scam is the lack of a license. There is no reason for a broker not to have a license except if they are trying to get away with something.
Would a reasonable person drive a car without a license? Work as a doctor or a lawyer without a degree? No. From the start, a broker without a license or with poor credentials is not worth working with. There are many other signs of a broker scam, such as unrealistic promises, poorly written web content, high fees. However, the sure sign is when the broker will not let customers withdraw their money, but at this point, many feel it is too late.
What to Do If You Have Lost Money to Broker Scams
It is not too late if your experience with a forex scam or a crypto scam is relatively recent. ReportScamOnline experts can help you with fund recovery through chargebacks, wire recalls, and other methods. Speak to a member of our team today to get your money back from a scam broker.