There are many scams related to forex targeting the public & retail traders. These scams continue to surge.
These days, forex adverts on social media are synonymous with pictures of luxury cars or houses and some fraudsters even go for celebrity endorsements with the aim of turning social media followers into customers.
People who don’t have the patience required to make money from forex trading may resort to perpetuating forex scams. Some do this because they already have some technical knowledge of forex trading.
The UK’s FCA had reported that over £27 million were lost by UK citizens to online forex and crypto scams in 2018-2019.
While most of the retail traders are now educated enough to figure out such scams & only deal with reputed brokers; but still many people, especially in Asia, Africa & even in developed countries fall for scams that are easy to spot if you are aware.
Forex traders should not get carried away by bogus promises; in this article, we will discuss some forex scams and how to detect them.
Scam #1 – Unlicensed forex brokers or dealers
Retail forex & CFD trading is regulated in some parts of the world by regulatory authorities. The United Kingdom has the Financial Conduct Authority (FCA), Australia has the Australia Securities and Investment Commission (ASIC), Cyprus has the Cyprus Securities and Exchange Commission (CYSEC), FSCA in South Africa, CMA in Kenya etc.
However, retail forex trading is not regulated in many countries and so any…
