Forex Trading South Africa. BEE Shares. Most Popular JSE Shares. Most Popular 20 Global Stocks. Build Your Own Share Portfolio. Open a FREE Trading Account. Open a FREE Trading Account Menu. Signal Sellers Forex signal sellers are individuals who send out trade ideas to other traders.

How do scammers make money off you? Subscription fees They will usually charge some sort of subscription fee that can be weekly or monthly. Broker-tied signals Some signal sellers offer you trading signals, but only if you sign up with a specific broker. PRO TIP The best way to determine if a signal seller can benefit you is to open a trading account with one of the better-known Forex brokers and enter practice trades in a demo account that doesn't involve real money. Become an expert Forex trader in no time at all!

PRO TIP Any course promising to turn a beginner into a professional trader in a short space of time is a red flag and you should probably steer clear. Too good to be true Managed Forex fund This is a scam in which an advertised Forex trading genius or team will allow people to invest in the fund that they manage.

PRO TIP If a fund promises very high returns you need to be looking into the actual trading history of the fund to understand what kind of trades, they are placing. Ponzi or pyramid schemes One type of managed fund that is actually a form of fraud is a Ponzi scheme. Dishonest Brokers The Forex market is becoming more and more regulated but there are still a lot of gaps and opportunities for shady brokers to take advantage of new traders.

PRO TIP You can protect yourself by making sure your broker handles stock market trades and so is regulated by the Securities and Exchange Commission SEC and Financial Industry Regulatory Authority FINRA or you can make sure they are highly regulated in the areas they trade in globally. PRO TIP This is just another reason amongst the many of why it is absolutely essential for traders to choose a Forex broker which is highly registered with at least one or more regulatory agencies.

PRO TIP If any firm makes these types of claims then you should ask to see several years of audited results, analysing month-by-month figures to confirm their claims openly and transparently.

PRO TIP Once again, it goes back to making sure that a trading broker is regulated and doing your due diligence. If it looks too good to be true, it probably is! Online reviews On a side note. Forex Robots A Forex robot is a trading program which uses algorithms that they have programmed as code as technical signals to open and close trades.

PRO TIP You can do an online search for a Forex robot scam list to help you to avoid some of the known scammers. Conclusion There are really only two main ways that you can avoid scams in the Forex market but this is usually the type of advice that new traders, who want to profit big and do so quickly, do not want to hear. Make sure you do proper research and due diligence on every offer that comes past you. Make sure the broker or individual is highly regulated.

Make sure they are well established and have a great and true track record. And make sure you do not fall for any type of too good to be true promises. If you are serious about becoming a good and successful trader with a profitable career, begin to properly educate yourself.

Find a great online Forex training school or find a very reputable broker that has great training and educational resources and make use of them!

On top of this, make sure the broker has a demo account so that you can start to apply what you are learning in a no risk environment. Make peace with the fact that you CAN make a very good amount of profit in the Forex market but it WILL take TIME. Time to build the skills and expertise you need. Time to learn how to use the analysis and research available and to understand the market in a thorough and comprehensive way.

Louis Schoeman. Featured SA Shares Writer and Forex Analyst. Table of Contents. Trade with a Regulated Broker.

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Advertisement Advertisement. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. Among the popular schemes designed to relieve you of your hard-earned cash are fake Forex signal sellers , managed investment funds and the everyday old dishonest scam broker routine which we have discussed earlier in this article.

A phoney Forex broker will always be able to talk a good game and they will offer traders amazing spreads, and promise of significant returns, some even going as far as to provide fake testimonials. What happens when a trader makes a deposit with a fake broker? Well, they can be sure of one thing — they will never see that money ever again.

This is literally the million-dollar question as no honest, hardworking trader could understand why anyone would want to carry out this kind of fraud and deception? Unfortunately, some people will stop at nothing to make a quick buck, even going as far as criminal lengths to defraud millions of investors. Because the FX market is not entirely regulated, just like binary options, anyone — even scammers can set up a trading platform and sell their services and match what all the honest, trustworthy brokers are doing and make traders buy into the lie.

If traders are new to trading, it is very likely that they will not know how to spot a scam broker and will see only the promise of good returns and an easier, more lucrative lifestyle. With no experience, how would traders know what they should be looking for? It is this lack of knowledge which encourages scam brokers to entice new traders to open accounts and deposit their funds. While brokers in most countries are required to operate with a trading license , this unfortunately does not apply to every country.

The first thing a trader needs to understand is that to make a scam attractive, it often appears too good to be true. This is a very clear red flag. As with anything in life, and business, if it sounds too good to be true, it usually is.

Other key things that will help traders to stop before signing up with a fake broker is to look into online reviews and feedback. Traders can simply enter the company name into Google and if they are operating under false pretences, traders will be able to discover a lot, including lots of online forums with stories from other traders that have been defrauded of their cash, online. If it is a new scam, this might be a little more difficult, but it is always worth checking before signing on the dotted line.

To check if the broker is indeed licensed it should be as easy as looking at the footer of their website. Traders should be put off by the existence of scam Forex brokers and they don't need to be a victim. Traders should simply exercise caution when choosing a broker and the company or parent company must be licensed, and they must be regulated.

If traders simply carry out an online research, they can find the most popular brokers that are universally recommended by multiple platforms. Often the best brokers are recommended multiple times as brokers that offer a whole host of benefits. Traders should be careful how they choose a broker as well and just because they are listed in the Google ads, for example, doesn't mean they are legitimate.

Any company can pay for these top spots. Lastly, if a trader can afford to lose a small amount, then deposit the minimum — in case a wrong broker is indeed chosen, the loss is not that great. Price and trade data source: JSE Ltd All other statistics calculated by Profile Data. All data is delayed by at least 15 minutes.

Telephone number: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs, FX or any of our other products work and whether you can afford to take the high risk of losing your money. Top 4 Brokers. Read Review. Comprehensive support and training, Global presence with a local feel, Uncompromising security, Advanced trading platforms.

Forex Brokers. Forex Trading Platforms. Trading Platforms. Brokers by License. Brokers Types. Broker Reviews. Brokers to Follow. Brokers by Account Type.

Index Trading Platforms. Forex Trading South Africa. BEE Shares. Most Popular JSE Shares. Most Popular 20 Global Stocks. Build Your Own Share Portfolio. Open a FREE Trading Account. Open a FREE Trading Account Menu. Forex Trading Scams — Take Notice and Avoid! Both banking and financial lawyers have pointed to the following features of the Forex market which makes it very susceptible to Forex trading scams and Forex frauds: There is no regulated centralized exchange.

Currencies are traded via computer networks between one trader and the next, often referred to as over-the-counter OTC. The Forex market is a high leverage market. Is Forex itself a scam?

How to Spot and Avoid a Forex Scam? Different types of Forex Scams Signal sellers The signal seller scam is a scam in which a person or a company sells info on which trades are made and claim that this information is based on professional forecasts which in turn guarantees to make the most inexperienced trader bucket loads of money.

High yield investment programs High yield Investment programmes are mostly a form of Ponzi scheme in which a high level of return is promised for a small initial investment, but in reality the initial investors are just being paid back from the income generated by the current investors — once there are no more investors in the scheme the owners usually close it down and take all money remaining. Scams through software Forex robot scammers will lure beginner traders with the promise of big gains from little effort or knowledge by using of fake or misleading figures to convince customers to buy their product.

Ponzi or pyramid schemes This is a very common form of fraud and makes promises of high returns from a small initial investment up front. Boiler room scams This type of scam involves getting people to buy shares in a worthless private company on the promise that when the company goes public their shares will increase considerably.

Questions a trader can ask to avoid a possible forex trading scam Is the broker regulated? If regulated , how trustworthy is the regulatory body? Is the broker offering profits or rewards for opening an account? Is the broker offering a cash bonus for opening an account? Is the broker offering automatic trades or signals to guarantee profits?

The brothers created a bogus company called Forex International in Durban, claiming to offer guaranteed returns on investments. The scammers, however, diverted R 1. They were eventually caught, and the South African Central Bank investigated the case and collected evidence from 18 victims. Peter was sentenced to fifteen years in prison, five of which are served time behind bars for failing to comply with a reserve bank instruction.

Forex Scams South Africa. December 29, Posted by Reviews. Related Post Forex Lists. Crypto Solutions Scam.

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FSCA Regulated Forex Brokers. Most Forex trading takes place in the spot FX market, which is different from the futures market, as currencies are physically exchanged in real time when a transaction is made. In the futures market the date the trading price is determined and the date the currency is exchanged are different.

Both banking and financial lawyers have pointed to the following features of the Forex market which makes it very susceptible to Forex trading scams and Forex frauds:.

The Forex market is a legitimate trading market in which world currencies are traded and therefor in itself it is not a scam. Without the Forex market it would be very difficult for traders to trade the currencies needed to buy imports, sell exports, go on holiday or do cross border business. The most important giveaway of a Forex scammer is usually a guarantee of large profits with little or no financial risk to the trader.

Some of these offers may sound very attractive and too good to be true, especially to beginner traders. The truth is — they usually are. Rule of thumb: if something sounds too good to be true, it probably is.

Here are a few simple rules to follow in order to avoid Forex Scammers:. The single most important thing a trader can do to avoid being scammed is to learn to trade on the Forex market and understand the market properly. Beginners must ensure that the broker chosen has actually made the money they have claimed and due diligence is the key. Traders should make use of demo accounts and learn to make long term profits first before trading for real. Traders should never take at face value the claims that are made by brokers as the gospel truth and must take the time to make their own analysis.

A beginner trader should always be critical in their approach, analysing statistics and making their own functions that they have tested and had success with on a demo account first.

This will take some time to achieve but it will serve the inexperienced trader in the long run. Forex markets trade trillions of dollars a day and multiple traders across the globe are looking for the best broker to trade forex, CFDs , binary options, stocks, cryptocurrencies , etc. With new forex brokers constantly entering the market, determining the legitimacy of a broker can be a real challenge.

It is vital to research a company before depositing money to trade. The signal seller scam is a scam in which a person or a company sells info on which trades are made and claim that this information is based on professional forecasts which in turn guarantees to make the most inexperienced trader bucket loads of money. High yield Investment programmes are mostly a form of Ponzi scheme in which a high level of return is promised for a small initial investment, but in reality the initial investors are just being paid back from the income generated by the current investors — once there are no more investors in the scheme the owners usually close it down and take all money remaining.

These types of scams have reduced over the past few years yet they still pop up. This is why it is very important for traders to choose a Forex broker which is registered with a regulatory agency. Forex robot scammers will lure beginner traders with the promise of big gains from little effort or knowledge by using of fake or misleading figures to convince customers to buy their product.

When the trader eventually wants to withdraw their money there is not enough money left to repay. This is a very common form of fraud and makes promises of high returns from a small initial investment up front. The early investors usually do gain a return on their money and be motivated by this success they then recruit their friends and family into the scheme.

When investor interest starts to drop the scammers close the scheme and take the money. This type of scam involves getting people to buy shares in a worthless private company on the promise that when the company goes public their shares will increase considerably.

While there are a large number of reputable brokers which offers their services to traders across the world, but unfortunately there are also those who are looking to make money from unsuspecting victims.

A new trader may not know what they are looking for or be equipped to recognise a Forex trading scam and this may cause some concern when it comes to investing your money. There are a vital things to look out for in order to ensure that a trader indeed chooses to trade with a genuine Forex broker and avoid subscribing to any of the services that may lead to a scam. There are many Forex trading scams which have managed to operate under the radar but others are bold and simply offer their amazing deals in plain sight.

Among the popular schemes designed to relieve you of your hard-earned cash are fake Forex signal sellers , managed investment funds and the everyday old dishonest scam broker routine which we have discussed earlier in this article. A phoney Forex broker will always be able to talk a good game and they will offer traders amazing spreads, and promise of significant returns, some even going as far as to provide fake testimonials.

What happens when a trader makes a deposit with a fake broker? Well, they can be sure of one thing — they will never see that money ever again. This is literally the million-dollar question as no honest, hardworking trader could understand why anyone would want to carry out this kind of fraud and deception? Unfortunately, some people will stop at nothing to make a quick buck, even going as far as criminal lengths to defraud millions of investors.

Because the FX market is not entirely regulated, just like binary options, anyone — even scammers can set up a trading platform and sell their services and match what all the honest, trustworthy brokers are doing and make traders buy into the lie.

If traders are new to trading, it is very likely that they will not know how to spot a scam broker and will see only the promise of good returns and an easier, more lucrative lifestyle. With no experience, how would traders know what they should be looking for?

It is this lack of knowledge which encourages scam brokers to entice new traders to open accounts and deposit their funds. While brokers in most countries are required to operate with a trading license , this unfortunately does not apply to every country.

The first thing a trader needs to understand is that to make a scam attractive, it often appears too good to be true. This is a very clear red flag. As with anything in life, and business, if it sounds too good to be true, it usually is. Other key things that will help traders to stop before signing up with a fake broker is to look into online reviews and feedback.

Traders can simply enter the company name into Google and if they are operating under false pretences, traders will be able to discover a lot, including lots of online forums with stories from other traders that have been defrauded of their cash, online.

If it is a new scam, this might be a little more difficult, but it is always worth checking before signing on the dotted line. To check if the broker is indeed licensed it should be as easy as looking at the footer of their website. Traders should be put off by the existence of scam Forex brokers and they don't need to be a victim. Traders should simply exercise caution when choosing a broker and the company or parent company must be licensed, and they must be regulated.

If traders simply carry out an online research, they can find the most popular brokers that are universally recommended by multiple platforms. Often the best brokers are recommended multiple times as brokers that offer a whole host of benefits. Traders should be careful how they choose a broker as well and just because they are listed in the Google ads, for example, doesn't mean they are legitimate. Any company can pay for these top spots. Lastly, if a trader can afford to lose a small amount, then deposit the minimum — in case a wrong broker is indeed chosen, the loss is not that great.

Price and trade data source: JSE Ltd All other statistics calculated by Profile Data. All data is delayed by at least 15 minutes. Telephone number: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs, FX or any of our other products work and whether you can afford to take the high risk of losing your money.

Top 4 Brokers. Read Review.

If a fund promises very high returns you need to be looking into the actual trading history of the fund to understand what kind of trades, they are placing. Performance Performance. Forex Robots A Forex robot is a trading program which uses algorithms that they have programmed as code as technical signals to open and close trades. Because the FX market is not entirely regulated, just like binary options, anyone — even scammers can set up a trading platform and sell their services and match what all the honest, trustworthy brokers are doing and make traders buy into the lie. Forex markets trade trillions of dollars a day and multiple traders across the globe are looking for the best broker to trade forex, CFDs , binary options, stocks, cryptocurrencies , etc. These types of scams have reduced over the past few years yet they still pop up. Brokers to Follow.

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