The Encyclopedia of Blacklisted Forex Brokers to Look Out for in 2022
The forex market, more commonly known as the foreign exchange market, is the most heavily traded financial market on the planet. With our detailed Beginner’s Guide, you’ll discover a lot about the forex market and the loopholes that exist in this market, the major one being the existence of blacklisted forex brokers.
The practice of making predictions on currency values to generate a profit is known as forex trading. Currencies are exchanged in pairs, so when a trader exchanges one money for the other, they are betting on the assumption that the value of one currency would rise over time against the value of the other. Trade flows economic, political, and geopolitical developments, all of which affect forex supply and demand, influence the value of a currency pair. This results in daily volatility, which may present new chances for forex traders. You can transact currencies via your smartphone, computer, tablets, or PC using online trading platforms supplied by global brokers. On the forex market, every transaction that takes place involves the simultaneous purchase and sale of two currencies.
This ‘currency duo’ consists of a base currency and a quote currency, with the base currency being sold in order to purchase the quotation currency. A pair’s price is the amount of quote currency needed to buy one unit of the base currency. You can benefit by correctly anticipating the price movement of a currency pair.
FXTM allows you to trade hundreds of different currency pairs, including the majors, which are the most often traded pairings in the forex market. The Euro is compared to the US Dollar, the US Dollar is compared to the Japanese Yen, and the British Pound is compared to the US Dollar.
If you’re someone who is into Forex Trading, then you’re definitely at the right place. We can give you the best practices in identifying red flags as well as help you in recovering your stolen money from scammers!
Table of Contents
Who is A Forex Broker?
A forex broker is a type of firm that gives traders a platform for buying and selling foreign currencies. Foreign exchange is shortened as forex. In the market, transactions are always made between two different currencies.
A forex market broker is also known as a currency exchange broker or a retail forex broker. The currency exchange market is a global, 24 hrs—market by nature. Retail currency markets that utilize these platforms to speculate on currency direction are among a forex broker’s clients. Prominent financial firms that operate on account of banks, as well as other customers, are among their clientele. Each forex broker firm in the market will only deal with a small part of the total volume of the forex.
Unfortunately, fraud can be found in any business, including the Forex market. Sleazy Forex brokers are still deceiving naïve traders in 2022, but the best part is that this is no longer the standard and is on the decline. This shift is due to a variety of factors. Today, Internet users keep blacklists of Forex fraudulent brokers up to date and publish them on a regular basis. Our webpage is no different.
Stay Clear of These Blacklisted Forex Brokers in 2022
Brokers aren’t usually the ones that represent Forex scammers. Individual actors without firms who position themselves as broker companies are more likely to be involved. They have frequently seasoned Internet users capable of fabricating misleading information on the sites they construct.
The owners of such scam websites do not have a license and are hence unregulated. They may not even have a fundamental understanding of the Forex market. However, not everything is clear to a beginner trader who does not have a background in economics or finance.
The notion of making money quickly and simply through internet trading is appealing, but it is not as simple as it appears. Scammers target all types of traders, and there are hundreds of them on the market. Although no one can provide you with a 100% guarantee, you should avoid brokers and intermediaries with a shady history.
We also want you to be aware of the fact that some con artists employ long-term planning. Because they don’t target every trader, they go unnoticed for years. So just because one of your colleagues is doing trade with a broker securely doesn’t mean you will be safe as well. You may be wondering who you should trust after reading the preceding lines. Your question is answered by saying that you should only trade with a broker after checking with a reputed firm like Money-Back.
However, there have been some brokers with whom you might never, ever work. We’ve compiled a list of the brokers with the shadiest records. The following is the blacklist:
These sites have been accused of robbing traders through various trading frauds. There are several forex bucket companies and pyramid scheme launchers on the list as well. Aside from them, it would help if you avoided brokers with no track history or positive evaluations, as they are mainly fly-by-night operators.
There are dozens of scam brokers on the market, and no blacklist can provide you with the names of all of them. That is why, before registering with any broker, you should check our site.
The broker claims to be based in Saint Vincent and the Grenadines and is regulated by the Financial Services Authority (FSA). Many traders have been attracted to this broker since it offers a live account with a US Dollar 0 minimum deposit requirement and a US Dollar 50 no-deposit bonus. Mobile trading, a variety of account types, and PAMM and MAM accounts are also available.
STForex is a broker situated in Saint Vincent and the Grenadines that has been in business since 2014. This broker has been identified as a fraud and should not be used to facilitate trading activities.
When registering for a live account, the broker does not require a minimum deposit and claims to offer a 200 percent deposit bonus as well as a US Dollar 10 no-deposit bonus. The broker claims to offer PAMM accounts as well as a selection of trading accounts. The website is available in Russian, and STForex claims to use an NDD model in addition to mobile trading, a variety of features, and high maximum leverage.
Trade24 is yet another phony broker that claims to make it easier to trade Forex and CFD financial instruments. Payout Services DOO, based in Montenegro, is the owner and operator of Trade24. Despite the fact that the parent business is registered in Anguilla, the Financial Services and Markets Authority in Belgium and the Ontario Securities Commission in Canada have issued multiple warnings against Trade24.
FIXI Markets professes to be an FCA-regulated dealer situated in the United Kingdom, with a history dating back to 2010. The broker claims to offer NDD and STP execution, as well as a wide range of financial instruments to trade. In addition to getting VPS and API capabilities, traders have a number of accounts to pick from. The broker promises to provide an affiliate scheme, mobile trading, and a US Dollar 100 minimum deposit.
The website is available in English, Georgian, and Russian; however, help is only in English. The following deposit currencies are accepted: USD, EUR, GBP, and AUD. Finally, this broker accepts Debit/Credit Cards, Skrill, Neteller, and Wire Transfers as payment methods. This brokerage has been flagged as a scam, and traders should avoid interacting with it, as well as a slew of other scam brokers.
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UFX Bank/UFX Market
Both UFX Market as well as UFX Bank have a large number of negative ratings pertaining to inconsistencies in their trading services and solutions. Traders have filed several complaints about these brokers, and as a result, the broker has been banned by Forex Peace Army due to the widespread lousy reputation in an effort to protect traders. Several bogus client evaluations have been put on the broker’s website, and the broker has used a variety of strategies to entice traders to deposit more money into their trading accounts.
When traders try to withdraw funds, they run into a slew of problems, and the transactions are never completed. Traders have no way of contacting customer service, and the broker encourages dangerous trades. Traders are offered a ‘final deal’ while attempting to close and stop their trading account, which results in a significant loss that clears the trader’s account.
Active Option Trade
Active option Trade claims to be based in New York; however, it is not regulated. There have been several reports and negative evaluations about this broker, as well as red flags that raise doubts about its credibility. There are various reviews warning traders that this broker may be a fraud because there is no method to assure the security of trader cash. Furthermore, there is little information accessible about the trading circumstances it provides.
Traders are encouraged to avoid utilizing the services of this broker and instead use a broker that is regulated by respectable organizations that gives clear and straightforward information about its offerings, among other things to consider.
Bit Options 24 (BitOptions)
According to the BitOptions website, this broker is Europe’s leading online and mobile consumer. It is claimed that they use cutting-edge technology and data to provide comprehensive services to traders in over 17 countries. There is also a provision for a company certificate to demonstrate that they are registered, but BitOptions 24 is a scam that has received multiple warnings. The website and offerings may appear authentic to novice traders, but the truth is that it is a site lacking specific information and promising unrealistic profits to naïve users.
When it comes to examining brokers and offers, the rule of thumb is that if something sounds too unreal or good to be true, it mostly is, and this is true in the case of the scam broker Panamoney. The Regulatory Authority of the financial industry issued a warning in 2010 labeling Panamoney as a fraud artist. Panamoney provided a few returns before going out of business and never being seen or heard from again. When this happened, many traders still had monies in their trading accounts, and these traders were unable to access these funds because the broker’s website was also shut down.
Panamoney was infamous for deducting cash from trading accounts and forfeiting gains for false ‘early fund withdrawal of funds requests’ that were not made by the affected traders. Some traders have claimed to have lost as much as $160,000 when trading with Panamoney. Panamoney also reserved the right to suspend a trading account at any moment and without notice. The trader would then be unaware that their trading account had been wiped of all funds until they attempted to access it and discovered that it had been barred.
Tradorax has been the subject of multiple complaints, and the FPA Trader’s Court has issued four guilty votes against the broker. Tradorax has been declared a scam as a result of these votes, and the broker appears on a number of websites that list blacklisted brokers. Tradorax is well-known for freezing trading accounts and preventing traders from withdrawing their funds. One of the Tradorax scam victims was a 60-year-old senior who lost £60,000 after being unable to withdraw his monies.
Several traders have complained about the broker’s failure to pay out payouts as well as the loss of monies from their trading accounts. Tradorax has also been accused of making deals on behalf of traders without their authorization, as well as fraudulently billing registered credit cards. Traders are advised to deposit more money into their trading accounts before the funds are frozen and deleted.
Avoid These Brokers at All Costs!
You may come across a few scammers when looking for ways to make extra money through FOREX trading. As a result, it’s critical to conduct thorough due diligence and study prior to entering the market. Remember, if something appears to be too nice enough to be real, it most likely is. New traders may be intimidated by the trading sector, especially given the sheer number of scam brokers that exist, but by conducting an extensive investigation, traders can avoid becoming victims of intricate schemes that could endanger a significant chunk of their wealth.
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