The Forex market is the largest financial market globally with over $6 trillion traded daily, and an abundance of opportunities to benefit from its potential. In addition, the advancement of technology has made it more accessible than ever before – especially online. However, it has also introduced some dangerous ‘soft spots’ for scammers and frauds. And you can bet that the forex trading frauds they’ve come up with are very clever.

In recent years we have seen a steep increase in forex trading frauds. That’s why we at Funds Trace want to take this opportunity in this blog post to highlight the most common schemes today. If you want to know more about how you can avoid them, and what there is to do if you have fallen victim to one of them, stay tuned for more content to come on this blog. Let’s begin.

A person with handcuffs holding a sign that says fraud


Types of Forex trading frauds

The biggest issue with identifying forex trading frauds is that they usually base themselves on seemingly legitimate services, and this makes it tricky to identify the fraudster from the real deal. In other words, there are thousands of brands offering forex trading services online – mainly through contracts for differences (CFDS) – and most of them are not scammers. 

How can you know if the service provider you are interested in signing up with is a scam? Here are a few rules of thumb.

  1. Signal service scams

Signal services involve providing a trader with a trading idea or recommendation that can potentially help them in the decision making process. It is ideal for newbie traders or those who have limited time available to study the markets. However, they can also be used by scammers to trick traders into making wrong decisions – and losing their money to the broker (which is ‘by chance’ also the provider of these dubious signals).

How do you know if you can trust the signal services you are offered? Here are some warning signs:

  1. Forex trading opportunity scams

It is not always easy to know whether the broker you are working with is reliable or not. As we’ve stated, there are thousands of them operating in the industry these days, with new ones popping up daily. 

However, there are a few rules of thumb that can help you identify the wrong from the right. Here are the most prominent ones:

These were just a few raised flags in a nutshell. Of course, there are more signs to be aware of, on which we will elaborate in the future. In the meantime, we invite you to contact our experts at Funds Trace if you want to know more about forex trading frauds, or if you believe that you have fallen victim to one. Let’s see how we can help you.

Leave a Reply

Your email address will not be published. Required fields are marked *