logo |


    Your location: Home >  Forum  >  Industry  >  Content details
    Industry 4 Common Forex Industry Scams

    1) Unregulated and Dishonest Brokers

    An unregulated broker is a broker that is not regulated under any recognized jurisdiction or with country's financial market regulator, so it can't be held accountable by a governing government authority in your country.

    If an unregulated broker commits fraud or scams you or indulges in malpractices in any manner, you have little or no recourse against them. This is because there is an absence of laws that protect you from such malpractices. 

    2) Fake Forex Signal Seller Scams

    A signal seller typically claims to rely on market analysis and news to judge the right time to trade in currency pairs. They may offer trading advice through automatic messages or may manually send you messages.

    Signal sellers are known to be often wrong and they may give advice that could lead to large losses for you.

    Do not trust signal sellers who promise advice that can regularly outperform the market. Only listen to signal sellers that are approved financial advisors & that suit your own analysis. 

    3) Forex Robot & Trading System Scams

    In these scams, you may be approached by someone asking you to buy a robot or an automatic trader that can trade for you. They will say that this robot allows you to earn money while you sleep.

    The robot is supposed to be able to conduct trade in your stead that generate a profitable yield.

    However, most of these robots never actually deliver as promised and you may end up with significant losses. These trading systems are never reviewed or tested by independent agencies. 

    4) Untrustworthy Investment Schemes & Funds

    There are several entities & individuals that promise to offer get-rich-quick investment schemes through forex and cryptocurrency - that are not credible.

    You should be wary of any investment schemes that promise guaranteed returns or outsize profits.

    Returns or profits in the forex market can never be guaranteed and you should always remember that your investments are subject to market risk. Never trust any company or individual that claims otherwise.

    Write your question...
    Please sign in first Sign up/in to comment

    There is no comment yet. Make the first one.


    Successfully published

    Risk Warning

    The Database of WikiFX comes from the official regulatory authorities , such as the FCA, ASIC, etc. The published content is also based on fairness, objectivity and fact. WikiFX doesn't ask for PR fees, advertising fees, ranking fees, data cleaning fees and other illogical fees. WikiFX will do its utmost to maintain the consistency and synchronization of database with authoritative data sources such as regulatory authorities, but does not guarantee the data to be up to date consistently.

    Given the complexity of forex industry, some brokers are issued legal licenses by cheating regulation institutes. If the data published by WikiFX are not in accordance with the fact, please click "Complaints "and "Correction" to inform us. We will check immediately and release the results.

    Foreign exchange, precious metals and over-the-counter (OTC) contracts are leveraged products, which have high risks and may lead to losses of your investment principal. Please invest rationally.

    Special Note, the content of the Wikifx site is for information purposes only and should not be construed as investment advice. The Forex broker is chosen by the client. The client understands and takes into account all risks arising with Forex trading is not relevant with WikiFX, the client should bear full responsibility for their consequences.