AuthorBy Chris Cammack
Updated: June 10, 2022

How do I avoid being scammed?

Forex-related scams are unfortunately common, and we frequently receive emails from traders who have been unable to withdraw money from their accounts or face other forms of resistance from brokers whose sole purpose is to have clients deposit and then refuse to refund the money.

There are some steps you can take to protect yourself.

  1. Never give money to someone to trade on your behalf. It is illegal in the UK for anyone to invest on your behalf without a licence from the Financial Conduct Authority (FCA). 
  2. Never send money to people you meet on social media, in our research we have found that over 50% of Forex scams start on Facebook and Instagram.
  3. Never trust any broker or person offering guaranteed returns. Forex trading is high-risk speculation and profits are never guaranteed.
  4. Always check whether a broker is regulated. Regulated brokers are required to publish their licence numbers on their websites. See below for Axi’s FCA reference number across the bottom of their website:

    Axi regulation

  5. Once you know a broker’s licence number, check with the regulator to see if the broker’s licence number is legitimate. The FCA in the UK keeps a register of all licenced brokers. See below for Axi’s entry in the FCA database:

    Axi FCA Regulation

  6. If your broker is not based in the UK, other major regulators such as ASIC (Australia) and CySEC (Europe) all have searchable registers.

I think I have been scammed, what should I do now?

If you believe you are a victim of a scam broker, the first step you should take is to contact your local regulator and make a complaint. In the UK, you can contact the FCA here.

We also collect information on scam brokers and Forex traders in the UK. Please let us know your experience using the form below.

What we will do with your information:

  • We collect answers from lots of traders and where we see a trend, we will conduct research into the broker in question and publish those results. Your voice matters a lot here.

What we will not do with your information:

  • Publish your personal details.  We may share your story, but will never attribute the comments to any one individual. Your privacy is respected.
  • Smear brokers where we can not find evidence of wrongdoing.
  • Represent individuals to help you recover your funds. We are not lawyers and don’t have the ability to do this.  We are just a public warning system.

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Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 75-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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