5 Ways Forex Brokers Can Scam you + How to Avoid
Trading Compared

5 Ways Forex Brokers Can Scam you + How to Avoid

How do brokers scam forex traders?

Freezing accounts

Brokers can freeze your forex account so that you miss the news that would result in a profitable trade for you. They may also freeze the account if you have a large loss or profit so you aren't able to close the trade.

They may manipulate the software so your profit targets do not get met. Your trade which should be profitable will not be able to be closed.


'Churning' means that the broker is able to trade on behalf of the client and they can buy and sell on the account. The broker is therefore scamming the trader as the customer is not making these trades instead, it is the broker who is. This is not as common in the forex market but happens more in the stock market.

Contacting the trader

The broker may refer to themselves as an 'account specialist' and promise you high profits when starting as a new trader. They ask for card details and ask you to deposit funds to make trades. When this happens, they may take the money and ensure that you do not incur a profit or making you lose out.

Cloning a legitimate broker A 'broker' may pretend that they are a legitimate broker. Their caller ID or emails may appear to be the same as the legitimate broker and therefore a customer believes that they are being contacted by the real broker.

Giving false advice

The broker may offer advice that will lead to the customer losing from a trade. They are likely to advise the customer that they will receive profit from a trade but ultimately it will lead to a loss.

Requesting documents

They might request documents to prove your identity when you request to withdraw funds to extend the process of giving you your funds, or not giving them to you at all. They may lie by saying that the service that they use to transfer funds is not working and so they cannot release the funds.

Diverting questions

A forex broker which is a scammer may avoid your questions. They may refer to the contract that you signed and say that they are performing within regulation. If you have any concerns, contact the Financial Conduct Authority to gain confirmation that a broker is legitimate.

Most Related/Top Read Articles:

Top 5 Trading Brokers for UK Beginner Traders
Top 5 Forex Signals for Uk Beginner Traders
Choosing your Very First Broker in 2019
10 Questions Every New Trader has - Answered
Trading Compared Home Page

Trading Compared

Disclaimer: By trading with securities you are taking a high degree of risk. You can lose all of your invested money. You should start trading only if you are aware of this risk. tradingcompared.co.uk is not providing any investment advice, we only help you find the best broker suitable for your needs. tradingcompared is free for everyone, but earns commission from some of the brokers. We get a commission, with no additional cost for you. Please use our link to open your account and we can further provide broker reviews for free.

Copyright 2019 TradingCompared All Rights Reserved