Daily Forex turnover exceeds $ 5 trillion. Most brokers operating in this market earn money honestly by providing financial services to traders.
However, big money also attracts scammers into the industry. These companies have only one goal – to collect more money from traders as quickly as possible and disappear. To protect yourself from such scammers, you should use the Forex-Up website. The link https://forex-up.com/black-rating/broker/ provides a blacklist with information about scammers.
What is a Forex scam?
Small companies and rather large fraudulent organizations with staffed call centers resort to fraud. They can be conditionally divided into four categories, each of which has its own characteristics:
• Fraudulent fly-by-night sites. The most popular type of scam that is easy to organize. The task is to attract many customers to the site in a short time, where they promise very high profits. No license to operate. The contact information is incorrect or it is impossible to contact with the specified data.
• Organized scammers. Whole criminal organizations can act under the guise of a forex broker. They specialize in cold calling and manipulative psychological tactics. Fraudsters collect contacts using teaser sites that promise easy or additional profits. They do not have a financial license.
• Financial pyramids. Schemes are usually based on multilevel marketing. They are used to motivate victims of fraud to invite their acquaintances and friends to participate in a pseudo-investment project. Scammers hide behind investments in efficient PAMM accounts, cryptocurrencies or precious metals. They promise a profit of more than 100% per annum. They do not have a financial license
• Fraud by licensed brokers. This type is the most difficult to define: companies can run a regular forex broker business and even be licensed. Their task is to make the client completely lose their deposit by using fraudulent tactics or reducing the risk of leveraged trading.
How to check if a broker is a scam: a simple test
To help individuals almost completely eliminate the possibility of fraud, Forex-Up provides a list of suspicious broker functions and recommendations if you find them – you visit this site and see the necessary information . Experts have prepared a risk rating for assessing the scam using a scale from 1 to 10, where 1 is the lowest risk and 10 is the highest. Forex-UP analysts use this methodology to list fraudulent brokers.