Trading can be exciting and a great way to build your nest egg. However, many of the brokers online are actually forex scams or crypto scams. Anyone who wants to trade online should do thorough research on brokers before opening an account. It also means being aware of scam brokers and which ones to avoid. Broker Complaint Registry has compiled these reviews of scam brokers to warn customers and to give a detailed account of how these scams work.
Online trading has increased dramatically in recent years, mainly around the COVID-19 crisis. When people had to stay home because of lockdowns and were facing financial insecurity in 2020, they looked to online opportunities to make money. Unfortunately, many of these opportunities were false and turned out to be forex scams and crypto scams.
The problem of scam online brokers is still with us and is increasing. Between 2019 and 2020, the number of online scams increased by 65%, and the numbers have been rising since. The FBI, Interpol, and regulators such as the SEC and the FCA have warned the public repeatedly about forex scams and crypto scams. Should people avoid using online brokers? Not at all. However, it is important to do research and use the utmost caution before choosing a broker.
The expression, “Look before you leap” definitely applies to researching brokers. Understanding the hallmarks of scam brokers is an important part of this research. Our professionals examine online fraud on a daily basis, and we have found certain traits many scam brokers have in common.
Most broker scams involve fake companies passing as brokers. Most are unregulated and some falsely claim to have licenses. Checking these claims with the regulator can confirm whether they are true or not. Others have licenses from third-tier regulators that provide no oversight. Understanding which regulators are reliable and which are not is essential.
No broker can absolutely recommend returns. Any broker that promises returns, especially at huge rates, such as 50% or more a month is most likely a scam broker. Many of them have sparse information on their sites with no names of people behind them, no phone number, or address. They will aggressively look for new clients and resort to spamming, cold calling or signing people up on social media.
Customers may discover they have signed up with a scam broker only when they realize that they are not allowed to withdraw money or the broker stops communicating with them. If this happens, it is important to talk to Broker Complaint Registry experts right away and get started on the fund recovery process.
Broker Complaint Registry has extensive experience dealing with forex scams, crypto scams, and broker disputes. We consult with clients, prepare intelligence reports and pursue fund recovery through chargebacks, wire recalls, and other methods. Talk to us right away if you have lost money to any of these brokers or any other financial scam.