Companies Blacklisted for Conducting Forex Scams

Category: Forex Scams
Length: 16 pages
Reading Time: 25 minutes

The numerous changes that have been made, the system has been updated for the many legitimate companies. This is because the dishonest people and the old con artists have been driven away by these changes. 

July 23, 2022

Introduction

There are still a great number of dishonest brokers functioning in the foreign exchange market, despite the fact that this industry is gradually becoming more regulated. 

These brokers have no business being there in the first place. When you are interested in trading foreign exchange, it is necessary to select brokers who are dependable and viable, and it is advisable to avoid those who are not. If you are unable to do either of these things, you should look elsewhere.

When you search the internet for fraudulent forex broker practices, you will find a shockingly large number of results. Con artists quickly learned how to capitalize on people’s newly discovered interest in the market after trading became viable and popular for the first time several decades ago. It didn’t take them long to figure out how to take advantage of people’s newfound interest in the market.

During the course of the previous few decades, con artists like Bernie Madoff have been accountable for the manipulation of the financial markets to the tune of tens of billions of dollars. You might be surprised to learn, however, that the figures are still high. 

According to one study, just under £30 million a year is lost in the UK due to fraud related to investments in cryptocurrency and foreign exchange. This figure is based on the UK. Why are there still so many instances of fraud involving foreign exchange, despite the fact that the market for foreign currencies is now under the efficient control of professional authorities? 

In recent years, a whole host of explanations have come to light, some of which include the proliferation of online trading, the impact of social media, and the presumption that deregulation-fueled “get rich quick” scams are commonplace all around the Western world. One of these components is the part played by various forms of social media. 

All of these elements, each in their own unique way, have led to an increase in the total number of negative aspects of the situation. This article will provide additional information about forex frauds, as well as specific companies that have been blacklisted and should be avoided.

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Table of Contents

CHAPTER 1: So, what exactly is forex trading?

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The foreign exchange market, often known as the currency market, forex, or simply the market, is a global decentralized or over-the-counter (OTC) market in which currencies are traded. Other names for this market include the forex market and the market. 

This market is in charge of determining the prices at which currencies can be traded against one another. The complete process of buying, selling, and exchanging currencies at prices that are either currently determined or that have been established in the past is included in this. It is by far the largest market in the world in terms of the volume of transactions that take place on the market, and it is the second-largest market overall, behind the credit market.

The most important players in this sector are found to be the world’s largest financial institutions. With the exception of the weekend, all of the world’s numerous financial hubs serve as focal points for the continuous exchange of goods and services between a bewildering diversity of different buyers and sellers. This transaction does not take place over the weekend. 

The foreign exchange market does not determine the absolute value of a currency because currencies are typically traded in pairs. Instead, it determines the relative worth of a currency by setting the market price of one currency if it is paid for with another currency. For example, one US dollar is equal to X Canadian dollars, one Swiss franc, one Japanese yen, and so on and so forth.

Currency

The market for foreign currencies is structured into various levels, each of which is managed by a separate group of financial organizations. Banks will, behind the scenes, make contact with a select number of other financial companies, known as “dealers,” who are actively engaged in considerable quantities of trading in foreign currency. 

The term “interbank market” is commonly used to refer to the market that takes place behind the scenes in the foreign exchange market. This is due to the fact that the majority of market participants are banks (although a few insurance companies and other kinds of financial firms are involved). The trades that take place between foreign currency brokers can frequently involve hundreds of millions or even billions of dollars, making them quite big. 

The question of sovereignty that emerges when dealing with two different currencies is the reason why the foreign exchange market has very little (if any) supervisory entity to oversee its actions. This is because the foreign exchange market deals with two different currencies.

The foreign exchange market is advantageous to both international business transactions and investments because of the ease with which it handles currency conversions. For example, it enables a company based in the United States to import products from countries that are members of the European Union, and more specifically from countries that are members of the Eurozone, and pay for those products using euros, even though the company’s revenue is generated in dollars. 

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This is possible even though the Eurozone uses the euro as its official currency. In addition to this, it offers support for direct speculation and evaluation in relation to the value of currencies, as well as carry trade speculation, which is based on the difference in interest rates between two different currencies. Both of these types of speculation are discussed further in the following paragraphs.

When dealing with foreign exchange, a typical transaction entails one party purchasing some quantity of a particular currency by making a payment in some quantity of another currency. The foreign currency market as we know it now had its beginnings in the 1970s when the groundwork was initially established. Following the conclusion of Globe War II, the main industrial governments of the world agreed to abide by the guidelines laid out by the Bretton Woods system of monetary management. 

These guidelines governed their economic and financial interactions. Because of this, the government decided to impose limits on dealings with foreign currency for a period of thirty years. These restrictions are still in place. The previous regime of the currency rate, which was controlled by the Bretton Woods system and maintained rates at a constant level, was gradually replaced with a new one in which exchange rates were permitted to fluctuate freely.

The characteristics listed below are some of the reasons why the foreign exchange market is in a class all by itself: trading begins at 22:00 GMT on Sunday (Sydney), and continues until 22:00 GMT on Friday (New York), excluding weekends; its huge trading volume, which represents the largest asset class in the world and leads to high liquidity; its geographical dispersion; its continuous operation: 24 hours a day except for weekends; the variety of factors that affect exchange rates; the low margins of relative profit compared with other markets of fixed income; and the use of leverage to increase returns. 

Forex-Scam

Trading begins at 22:00 GMT on Sunday (S Despite the fact that central banks do sometimes intervene in currency markets, it has been referred to as the market that gets the closest to the concept of perfect competition because of this reality.

As reported by the Bank for International Settlements, the preliminary global results from the 2019 Triennial Central Bank Survey of Foreign Exchange and Over-the-Counter Derivatives Market Activity show that trading in foreign exchange markets averaged $6.6 trillion per day in April 2019. This information was obtained from the global survey that was conducted in 2019. (BIS). 

This is a rise from the previous high of $5.1 trillion, which was set in April of 2016. In April 2019, the value of daily trades in foreign exchange swaps exceeded those of any other instrument by a factor of $3.2 trillion, with spot trading coming in a distant second at $2 trillion. This was due to the fact that the value of daily trades in foreign exchange swaps exceeded those of any other instrument by a factor of $3.2 trillion.

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CHAPTER 2: How do forex scams occur in forex trading?

Any method of trading on the foreign exchange market that is used to defraud traders on the foreign exchange market by convincing them that they may expect to achieve a high profit by trading on the foreign exchange market is considered to be a form of foreign exchange fraud. 

This is because traders are led to believe that they can expect to achieve a high profit by trading on the foreign exchange market. Around the beginning of 2008, fraudulent practices involving currency trading became more frequent, according to Michael Dunn of the United States Commodity Futures Trading Commission. 

The foreign exchange market is, at best, a zero-sum game, which means that for every trader who comes out ahead, there is another trader who comes out behind. Consequently, the market is extremely competitive. However, due to the fact that brokerage commissions and other transaction expenses are removed from the returns of all traders, foreign exchange is a game in which everybody who plays it ends up losing money.

Because brokerage commissions and other transaction expenses are removed from the returns of all traders in this context, trading foreign currency is referred to as a “negative-sum game.” This is because the results of trading foreign currency are never a winner. Estimates suggest that as of April 2019, the value of the spot foreign exchange market, which includes currency options and futures contracts, topped $6.6 trillion on an average daily basis. 

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This figure takes into account the contracts for these financial instruments. A large amount of money is freely circulating in an unregulated spot market that conducts trades instantly, over the counter, and without any accountability. As a result, shady operators are drawn to the forex market in order to perpetrate fraudulent schemes because of the large amount of money that is freely circulating. Swindles on the foreign currency market offer their victims the opportunity to acquire enormous riches in a very short period of time. 

This is because of the nature of the market itself. Although the aggressive enforcement actions taken by the Commodity Futures Trading Commission (CFTC) and the establishment of the self-regulatory National Futures Association (NFA) in 1982 caused a large number of once-popular scams to go out of business, some older scams have continued to exist, and new scams are constantly coming into existence. Despite these developments, however, new scams are constantly coming into existence.

It is made more difficult to create a profit from trading transactions as a result of Forex brokers who participate in questionable business practices. One such activity is using wide bid-ask spreads on particular currency pairings. When conducting business with any broker that is based in an unregulated offshore jurisdiction, you should always exercise extreme caution at all times. 

Individuals and businesses who offer methods, such as signal sellers or robot traders, have the potential to sell products that have not been validated and are not likely to provide successful results. 

This is something that is possible. When they sell their items, they accept this risk as part of the transaction. If the foreign exchange broker mixes customers’ money with their own or places restrictions on the amount of money clients can withdraw from their accounts, it’s conceivable that the broker’s business operations are incorrect. 

forex chart

When it comes to the EUR/USD currency pair, for instance, certain brokers do not give the typical spread of two to three points but rather spreads of seven pip or greater. This is because the spread is calculated by multiplying the bid price by the ask price. In accordance with the standard operating procedure of the market, the value of the exchange rate for any particular currency is only able to fluctuate in price by a maximum of one pip at any one time. 

The most significant change that can occur in a price is the relocation of the final decimal point in the price. This is due to the fact that prices for the majority of major currency pairings are stated in four decimal places. Take into consideration the fact that each trade will cost you an additional four or more pips in fees and that any potential earnings from a good trade will be wiped away by commissions, depending on how the forex broker distributes their trading fees for consumers. 

Be careful of any retail brokers that are located in other nations and are not regulated by the Commodity Futures Trading Commission, the National Futures Association, or the governments of the various countries from which they originate. These urges continue to exist even when confronted with actions, and it is very simple for businesses to collapse and disappear with the money they have earned right in front of their eyes. Many individuals were of the opinion that whoever was responsible for these computer manipulations ought to be put in jail, and they voiced this opinion frequently. 

On the other hand, throughout the course of history, the vast majority of businesses that have broken the law have been those located in the United States as opposed to those based in other nations. This is especially true of businesses that have been involved in illegal activities.

forex chart

CHAPTER 3: Fraudulent brokers – who are they?

Scam brokers in the foreign exchange market are not always represented by other brokers. The vast majority of them are likely to be independent individuals who do not have their own businesses but present themselves as broker companies. 

Frequently, these people are quite savvy Internet users who are able to generate bogus information on the website that they created themselves.

The proprietors of these fraudulent websites do not possess a license, and as a result, they are not appropriately monitored. There are times when they don’t even have the most fundamental understanding of the Forex market. However, for a new trader who does not have a background in economics or finance, not everything is as clear-cut as it may seem at first glance.

A user, for instance, might go to a website that is elegantly created and find themselves confronted with alluring assurances of financial gain along with words or phrases such as “spread” and “quick execution of orders.” This could give the newbie the impression that the dishonest website is more legitimate than it actually is. As a consequence of this, a person signs up for the service, makes a deposit (this is where the most intriguing part begins), and then there is the deceit that is carried out through the use of technology. The following three categories dominate most blacklists of Forex scam brokers:

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• Fly by night brokers

Up until fairly recently, this particular con was by far the most common. The basic premise is that somebody, or maybe even more than one person, will set up a website. 

Most of the time, it’s merely a landing page that encourages people to invest and make a lot of money for themselves. It’s possible that this includes PAMM accounts as well. It makes little difference to the con artists what they say; the most important thing is to get people and their money. As a consequence of this, they will collect deposits from traders before closing the site. Occasionally, they may announce that they will be filing for bankruptcy, but other times, they will not make any disclosures at all.

• Forex bucket shops

This particular con is more sophisticated than others, and it calls for a greater amount of careful planning; nevertheless, the potential gain for the con artist is also greater. 

In this instance, they develop a full-fledged platform that mirrors the capabilities offered by the industry’s most prominent Forex brokers. The trader does not compete with other traders on the global interbank market but rather with other traders who are only registered on the fake site itself or even with the platform itself. Naturally, Forex bucket shops will design restrictions that are impossible to meet in order to ensure that the site itself remains profitable even while traders are consistently losing money.

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• Pyramid schemes

This is possibly the most well-known method of fraud that can be found in any industry, including the market for foreign currency conversion. 

This particular con has absolutely nothing to do with forex brokers. The issue is that the company is portraying itself as a broker when in reality, all it does is accept deposits from different traders. Most of the time, it does this without even seeming to have any activity on the interbank market. They are only going to continue to provide hollow promises and platitudes. This particular con has become significantly rarer in recent years compared to others.

CHAPTER 4: Blacklisted forex companies

This part of the article discusses some of the forex brokers that are on the blacklist. It provides an overview of each company, as well as some customer evaluations and verdicts regarding whether or not it is safe to invest your money with these organizations.

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• 24FX

Foreign exchange (Forex) and contract for difference (CFD) products are the primary focuses of 24FX.com, an online broker specializing in both of these areas. Rodeler Ltd., the business that owns it, is in possession of license number 207/13, which is issued by the Cyprus Securities and Exchange Commission (CySEC). This means that the CySEC has full authority over it and issues all necessary licenses and controls.

They only push folks to put real money, and once you lose your money, they just keep making up bonus programmes as a chance to win it back. According to extensive investigations and after looking into reviews, it can be said with confidence that 24fx is a scam broker. According to what was stated in one of the reviews: “After I had been trading with my initial deposit of $300 for a month and had been doing so for a while, they started calling me on a regular basis to ask that I make a larger amount of money available for trading. This happened after I had been doing so for a while. This is a common technique in casinos, and the fact that the corporation in question engages in it is evidence of the company’s lack of legitimacy.”

24FX Logo

• 24 option.com

By doing some research about 24option on the internet, you might pick up some useful information. In light of the fact that 24option is, according to the data, the second-largest broker of binary options in the entire world, this fact should not come as a surprise to anyone. 

Since its founding in 2010, 24option has been recognized as a leading broker in the field of binary options. Limassol, which is a city in Cyprus, serves as the location of the company’s headquarters. The creators of 24option believe that their primary goal is to give customers exceptional conditions in the trading of binary options. More recently, the company has begun to provide traders with access to the foreign currency market as well. Customers of the broker have access to a diverse selection of tradable financial products across a wide variety of categories.

It is general knowledge that 24option is responsible for scamming its consumers by preventing them from withdrawing the money that they have earned. They have also been known to, on occasion, mislead customers that they will deliver free money or other similar incentives to customers. This practice is not uncommon for them. This kind of action is nothing out of the ordinary for them. Customers have a negative opinion of this particular organization for a number of different reasons, and one of those reasons is that, according to the testimonies, customers end up having all of their money vanish into thin air.

24 option

• 4XP

4XP is an online foreign exchange broker that was established by a group of retail ended entrepreneurs and capital market dealers. 

These individuals had the goal of establishing a brokerage service that would cater to the requirements of clients and deliver a trading solution that would be appealing to customers. 4XP is an example of what they were able to accomplish with their goal. The ratings that customers have left for this business are some of the worst we’ve ever seen in our research on customer feedback. 

The following is what was provided by one of the customers: “In 2014, I opened a trading account with 4XP and deposited $45,000 into it to get the ball rolling on a financial transaction that I wanted to undertake. I approached 4XP after a year, and a half had gone in the hopes of getting my money returned, but they were unwilling to do so. 

I made a deposit using a credit card. In response to my request for a refund, 4XP indicated that their bank accounts had been suspended because of the FSCL (the authorities in New Zealand). However, this was a fabrication on their part. It turns out that they were just scam artists all along.”

In yet another review, it is said that: “The 4XP program is a sham of the first order! They do not bother to answer any of the emails that are sent to them. They are tough to get in touch with by phone; I anticipate receiving a refund in the next two months. You should not invest any of your money in them, and you should try to prevent wasting cash. The customer accounts of 4XP’s clients have been frozen by the banks for a considerable amount of time because the company has declared bankruptcy and lost its license to deal foreign exchange. 

Many of the reviews on this product are from customers who believe they were given false information. To say nothing of hundreds of thousands of dollars, 4XP has not repaid even tens of thousands of dollars.”

• 770 capital

Customers are given the opportunity to participate in trading on the financial market and have access to trades from all around the world thanks to 770capital, a cutting-edge broker that offers this service. Trading foreign currency (also known as Forex) online can be difficult and risky, but the 770capital team makes it simple and rewarding. 

This broker’s website offers a plethora of essential information that traders need to have in order to make profitable trades using the broker’s services. Customers have the opportunity to increase their income by utilizing the broad variety of trading instruments that are made available by the company.

770 Capital Logo

These con artists have done a fantastic job of constructing a website that has been given a lot of thought. The fact that such a big number of people have been taken in by this fraud should not come as a surprise to anyone. If I’m being completely honest with you, this webpage gives off an authentic vibe and has a user interface that’s simple to get around on. 

Do not let yourself be misled by the seemingly innocuous content on the homepage of this website; there is a sneaky plan afoot here. These scam artists are only interested in making an impact that won’t be forgotten very soon in the hopes that members will sign up with 770 CAPITAL.

Con artists typically base their business on making promises that they cannot keep. Con artists are well aware that the most majority of people have the objective of earning money in a way that is both straightforward and speedy. 

These con artists have taken advantage of people’s need to obtain money as rapidly as possible in order to further their own financial gain. In order to gain your trust and obtain your business, they will make you feel that they have conceived of a strategy that will assist you in satiating this want through the use of a method that they have developed. 

As soon as you make a deposit with 770 Capital, the company will promptly remove the funds from your account. The most prudent course of action would be to stay completely away from it.

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There is not the least indication, anywhere on the surface of the entire earth, that 770Capital is subject to any form of regulation or license of any kind. 770Capital is not on the radar of the regulatory bodies that we have contacted; they are not aware that it even exists. We reached out to the relevant authorities in order to ascertain whether or not this broker was conducting their business in a lawful manner. 

Our initial priority was to contact the Financial Conduct Authority. They unequivocally rejected the notion that they were familiar with 770 Capital in any way. The subsequent step was to make contact with CySEC, which informed us that they were also very close to making 770CAPITAL illegal in their jurisdiction.

It is not necessary in any manner to have 770 Capital in order to participate in any form of business that is associated with trading foreign currency. This is because 770Capital is exempt from any and all forms of regulation, which explains why this is the case. 

This suggests that members are partaking in illegal activity by conducting business with a broker who is neither licensed nor authorized in the relevant jurisdictions. The foreign exchange market is brought into disrepute by the presence of brokers who have such a terrible reputation. The safest and most prudent thing to do is to steer clear of using this site totally.

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• ACFX

The new headquarters of AtlasCapital Financial Services Ltd. have been established in Limassol, which is the capital city of the island nation of Cyprus. 

ACFS is a corporation that complies with the standards set forth by both the Cyprus Securities and Exchange Commission as well as the Financial Services Authority in the United Kingdom, where it is based.

It is not recommended to trade with ACFX because they are an unlicensed broker; therefore, you should avoid doing business with them. In addition to this, a common belief exists that the company is running a fraudulent operation. 

As a result of our inquiry into the company, we found out that there is neither authorization nor registration of the address; as a consequence, the company seems to be very suspicious, and it is possible that its services are being provided from a completely different location.

ACFX Capital

• Adamant Finance

Adamant Finance, which is a brokerage firm, provides clients with the opportunity to gain direct access to the foreign currency market. 

The broker employs high-tech means to execute orders and introduce them to the market, it is now possible for traders to engage in transactions directly with one another without the participation of any intermediaries.

We found out some concerning information about Adamant Finance, and one of those revelations was that they make promises that they do not intend to keep. A few examples of these assurances include immediate execution, access to one-of-a-kind affiliate programs, and the lack of any additional fees that are intentionally hidden. 

The platform is so slow that it even has terrible performance when compared to internet platforms, making the claim of speedy execution a complete and utter fabrication. No participant in any of their affiliate schemes is ever compensated in any way. To make a bad situation even worse, becoming an affiliate is the same thing as being a fraudster’s partner in crime. Signing up to become an affiliate is the same thing as being an accomplice.

Adamant-Finance

• AGM markets

AGM Markets is a multi asset broker and global online trading platform for financial markets that was established in 2011. After more than 11 years of operation, AGM Markets is now able to provide retail investors with forex trading. AGM Markets is an international brokerage firm. The headquarters of AGM Markets are located in Cyprus.

When you are trading on the financial markets, finding a broker that is suitable for your requirements can be a very time-consuming process. In the following section of our AGM Markets review, we are going to delve deep into the company and analyze how effectively its platform operates in its capacity as an international multiple financial asset trading platform for traders in the year 2022.

It is a common practice to go to the websites of a number of different brokers and go over their content. Each of these websites makes unique linguistic choices. The terminology can be very difficult to understand at times. It can be challenging to select a reputable online broker such as AGM Markets. The first few challenges that a novice investor may face include what seems to be a complicated mobile or online trading platform, difficult-to-comprehend financial language, and unclear cost structures.

AGM Markets is a multi-asset trading platform that offers more than 100 different assets for trading. Forex is one of the assets that may be traded on AGM Markets. AGM Markets is involved in the trading of a wide variety of financial assets. Any security or asset that has an attached financial value, whether tangible or intangible, is considered to be a financial asset. Therefore, foreign exchange markets are regarded as financial assets.

AGM Markets

Only foreign exchange (Forex) trading is available through AGM Markets. On the AGM Markets trading platform, the assets and products that are available to you are determined by the region of the world you are now located in as well as the entity with which you have an account. A minimum deposit of $250 is required to open an account with AGM Markets. You may become familiar with the AGM Markets platform by registering for a demo account on their website.

AGM Markets is equipped to accommodate traders of varying skill levels, so it doesn’t matter if you’re a seasoned pro or just starting out. When searching for a broker like AGM Markets, it is essential to take into consideration the administrative body and regulatory status of the broker. When there is no oversight from a regulatory agency, it is up to the discretion of the broker to decide whether or not to execute a trade. Putting your money into the stock market puts it at risk.

AGM Markets’ headquarters are located in Cyprus, where the company was founded in 2011 and has been operating for 11 years. The AGM Markets are subject to regulation. This indicates that the regulatory authorities of the Cyprus Securities and Exchange Commission (CySEC) are in charge of supervising AGM Markets and checking their behavior for compliance. 

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Because of the laws that are in place, it is extremely unlikely that regulated brokers will attempt to manipulate market pricing. AGM Markets will comply with your request to withdraw funds whenever you send in a withdrawal request. If AGM Markets broke any of the rules that govern their regulated status, that status might be taken away from them.

Your financial resources are in jeopardy. Any payments made by traders and deposited into AGM Markets accounts are kept in a separate bank account for security purposes. AGM Markets uses tier-1 institutions for this purpose for an additional layer of protection. The official measurement of a bank’s financial health and strength is referred to as Tier 1. 

It is generally agreed that Tier 1 banks offer the highest level of protection for their customers’ funds. A bank’s ability to meet its financial obligations is referred to as its “Tier 1” status. A Tier 1 bank is one that possesses substantial core capital reserves and is typically in a position to withstand unforeseen losses. If you choose to deposit money with AGM Markets, that money will be stored in a bank that is solvent enough to honor your withdrawal requests in the event that AGM Markets goes out of business for some reason.

As a result, we are able to draw the reasonable and sound conclusion that AGM Markets is reasonably secure and safe. Having said that, it is important to keep in mind that you run the risk of losing money while investing in financial assets. The failure to put in sufficient effort into researching the markets, the absence of relevant experience, or the refusal to make use of the tools supplied by the brokerage platform are all potential causes of account losses. 

Forex Graph

When investing in financial investments, experiencing a sudden loss of capital due to forex trading is not an uncommon occurrence. You should only engage in trading when you fully comprehend the fact that the volatility of the market puts your invested capital in danger at any given moment. Additionally, it is made abundantly apparent on the AGM Markets platform that your capital may be at risk. 

Now that we have addressed several key concerns with AGM Markets, we will move on to the next step. Let’s take a more in-depth look at the features that AGM Markets has to offer. When working with AGM Markets, you may want to try creating two accounts for yourself. The first is known as your genuine account, and it contains the money you intend to withdraw, while the second is known as your demo account. The demo account serves as your testing ground for new features.

After conducting our own research, we have determined that AGM Markets is subject to the regulation and oversight of credible organizations. You have the ability to look into each AGM Markets supervisory and regulating organization that is listed below. Those who experience concerns with AGM Markets now have some options available to them thanks to regulation. The traders are safeguarded by regulatory authorities through means like reimbursement programs, which are designed to recoup the client’s money in the event that the broker goes bankrupt.

In order to maintain their licenses and carry on business in the relevant jurisdictions, the brokerage companies must demonstrate that they are in compliance with a wide range of regulations and criteria that have been established by the regulatory authorities in those jurisdictions. 

Broker

The purpose of regulation is to safeguard AGM Markets traders and create a more secure environment in which they can engage in trading. Financial regulation and license approval is needed. Reputable financial regulatory authorities oversee, govern, and supervise AGM Markets in order to ensure the company’s continued success. The actions of the brokers are monitored by regulatory agencies, and if something goes wrong, these bodies will take the appropriate measures. You want to make certain that an online broker, like AGM Markets, is a genuine internet agency before you engage in online trading with them. 

AGM Markets is a global trading platform since it is active in 193 countries all over the world, including countries in Europe, Asia, Oceania, and Africa. The United Kingdom (UK), Germany, Australia, South Africa, Thailand, and China are among the major nations covered by AGM Markets. More than 10,000 users are currently registered with AGM Markets. Be advised that different businesses operating under the AGM Markets Brand offer a variety of trading instruments because of the limits imposed by regulatory authorities. 

The client’s nation of residency and the organization that manages the customer account both have an impact on the trading instruments that are made available to them. In addition, the trading instruments that are made available to you by AGM Markets can be different based on the trading platform that you use when you place your trades.

AGM Markets gives traders access to more than one hundred different financial instruments, allowing for greater trading flexibility. AGM Markets provides over 45 different currency pairings for trading, making them an excellent choice if you are seeking for forex brokers to trade currency pairs on global forex markets.

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• Alfa trade

AlfaTrade is based in an offshore jurisdiction, we strongly recommend that our audience refrains from using it. Nemesis Capital Ltd. is an offshore corporation that is registered in Saint Vincent and the Grenadines. Nemesis Capital Ltd. is the owner of AlfaTrade.

The Caribbean nation of Saint Vincent and the Grenadines is notoriously lax when it comes to the enforcement of rules and laws. As a result of the low cost of setup and the fact that it does not control FX trading. As a result, it turned into an offshore zone that dodgy forex brokers like Brokerz, TraderUR, and others could operate in. 

You can learn more about the dangers of trading with brokers from St. Vincent and the Grenadines by reading our in-depth essay on the subject. It is not clear exactly where the headquarters of the internet brokerage firm AlfaTrade are located. AlfaTrade is a corporation that is difficult to grasp. 

The Nemesis Capital Limited is a business that has its registered address in St. Vincent and the Grenadines, which is a location that is known for being very business-friendly and simple to run. Although the official telephone number for the organization is based in the UK, the business also has an extra address that it claims is located in Europe. This address is in Bulgaria.

Alfa trade

The official website is currently claiming to be undergoing maintenance and has promised to return in the near future. However, trading and all other activities can still be conducted using the AlfaTrade MetaTrader4. In addition, after doing some research, we discovered that the company had previously been registered with the Financial Conduct Authority (UK) but that its license has been revoked since 2015 for unknown reasons. 

In general, it seems as though the company is engaged in shady dealings while at the same time purporting to be a long-standing and trustworthy organization that allows customers to trade in forex, CFDs, commodities, and indices. In addition, the suspicious operations of the company were validated by a large number of customer complaints, which pointed to AlfaTrade’s targeting and attraction of a clientele of worldwide customers located in a variety of jurisdictions. 

However, because the company has been receiving complaints from customers, the international authorities that govern the forex market are keeping a close eye on it. For this reason, the AlfaTrade company and its subsidiaries included soliciting traders without a license to their list of scam alerts and cautions.

“The National Commission for Companies and the Stock exchange reports that the companies Nemesis Capital Limited and Nemesis Capital Bg Limited are not authorized to provide investment services,” Nemesis Capital Limited and Nemesis Capital Bg Limited are not authorized to provide investment services. We strongly advocate opening a trading account with just those brokers who are regulated by the recognised world authorities and who comply with the required set of rules and have maintained a good reputation throughout the timeframe in which they have carried out their activities. 

man holding an android phone

Traders should only conduct business with brokers who are subject to stringent regulations, such as those found in the United Kingdom or Australia, as well as reputable brokers such as BDSwiss and FBS.

A foreign exchange account is a trading account that is owned by a trader with a company like ALFATRADE, and it is issued with the sole goal of trading through the company’s platforms. Typically, the number of accounts and types of accounts that a trader is permitted to open with a broker firm will vary depending on the country in which the brokerage is based, the trader’s country of residence, and the regulatory authorities under whose jurisdiction the firm is authorized to conduct business. The amount of money spent on trading is determined by a number of variables including commissions, spreads, and margins.

The difference between the bid rate and the asking rate for a currency pair is known as the spread for that pair. A point of interest (pip) is the smallest possible change that can occur in a currency exchange rate. For currency pairs in which the Japanese yen serves as the term currency, one pip is equal to 0.01, but for all other pairs, one pip is equal to 0.0001. 

The amount of money that must be available in your account before you may open a position is referred to as the margin. The margin is determined by the current price of the base currency in relation to USD, the size (volume) of the position, and the leverage that is applied to your account.

stocks chart

Commissions are the fees that a trader must pay to an investment broker in exchange for the broker’s assistance in conducting trades on the trader’s behalf. The kind of service being provided by the broker and the asset being traded for both impact the level of fee that must be paid. Traders typically pay lesser commissions when they work with execution-only brokers since these brokers do not offer personalized financial advice and instead allow traders full authority over how they trade the markets. 

Contract for differences (CFDs) trading is a type of derivative trading that gives traders the ability to bet on the increasing or falling prices of rapidly changing global financial markets. However, CFDs trading on shares will result in the payment of commission. Trades in contracts for difference (CFDs) made on other markets don’t incur commission fees, but they do add a spread on top of the price of the underlying asset.

ALFATRADE uses a dealing style known as STP (NDD), and clients have the option of choosing between a variable spread starting at 1.5 pips with no cost or a raw spread starting at 0.1 pips with a commission of $2 per lot. In the Premium account, you can trade micro lots, and the minimum spread for that account is 2.3 pips. Investors that deposit at least $50,000 are eligible to open a VIP account, which has a lower spread of 1.7 pips.

Trading leveraged products magnifies a trader’s potential profit, but it also raises the trader’s potential loss, which is to be expected. Leverage is a facility that allows traders to acquire a higher exposure to the market than the amount they placed to open a transaction. This facility allows traders to get a larger exposure to the market than they would otherwise have.

atm and paper

The level of leverage is typically stated as a ratio, such as 50:1, 100:1, or 500:1. If a trader has a trading account with $1,000 and is trading ticket sizes of $100,000 USD/JPY, then the trader’s leverage will be 100 to 1. A maximum leverage ratio of 1:200 is permitted when trading with ALFATRADE.

Deposit bonuses are a common incentive offered by forex brokers to attract new traders. This might be helpful, but it is absolutely necessary to figure out what the requirements are in order to actually profit from a bonus. Traders are typically compensated with the bonus for selecting a particular broker. This is due to the fact that once an account is active, the trader will have the same costs as any other trader. Once the trader has established themselves as an active participant in the market, the bonus will typically begin to reimburse them for some of their expenses.

Therefore, despite the fact that no deposit bonuses are an excellent method to get you started in trading, the rules to benefit from them frequently require that you trade at such a large volume before you can withdraw gains, which means that it may not be advantageous to take advantage of them. 

The European Securities and Markets Authority (ESMA) has just recently implemented investor protection measures regarding the marketing, distribution, or sale of CFDs. These measures prohibit brokers from providing retail clients with a payment, monetary or excluded non-monetary benefit regarding the marketing, distribution, or sale of a CFD, which effectively eliminates the possibility of offering bonuses of this kind.

Recognition

A potential trader needs to determine whether or not a broker such as ALFATRADE is secure to trade with before making the decision to join a broker and begin trading with that broker. Determine whether regulatory authorities are acting as watchdogs over a brokerage’s activities. This is one of the most reliable standards by which to evaluate the safety of a brokerage.

Even though ALFATRADE asserts that it is approved and regulated by the Financial Conduct Authority (FCA) of the United Kingdom, there is evidence indicating that the license was revoked a number of years ago, according to certain sources.

Traders have been cautioned by the Financial Protection Agency not to conduct business with any of the companies that belong to the same group after it was revealed that there is evidence suggesting that AlfaTrade is owned by the same person as another fraudulent broker known as NRG Binary. 

Before beginning to engage in speculative trading and at all times throughout trading, prospective traders have a responsibility to educate themselves about the topic to the greatest extent feasible. Because effective trading is primarily reliant on information and comprehension of the markets, the research options that are provided by brokers are an essential component of the qualities that should be considered when selecting the appropriate company with which to trade.

Research options are available through AlfaTrade, such as market tools like the Guardian Angel, which can be accessed immediately from the MT4 platform. The ALFATRADE Guardian Angel offers real-time feedback on trading activity, as well as input on the performance of traders’ strategies and suggestions for how they might improve such strategies. Traders can sign up to use a market-analysis program called Autochartist and receive trading indications on their mobile devices or via email. Traders can also receive trading signals on their mobile devices.

Romance Scam

CHAPTER 5: Should you trade with blacklisted companies?

Choosing to put money into banned businesses, such as the ones that were just described, is not a recommendation or a choice that ought to be regarded favorably in any way. 

It is common knowledge that these businesses have a history of misleading clients and fraudulently taking the money that they have earned from those customers. In addition to this, the brokers operate from locations outside of the country and should under no circumstances be trusted. There is not a single uplifting testimonial about these brokers to be found anywhere on the internet. Because of this, cooperating with them in business endeavors is not a prudent choice.

Key Takeaways!

You can conduct research on the prospective forex broker that you are contemplating by going to the Background Affiliation Status Information Center (BASIC), which was established by the National Futures Association (NFA). 

The numerous changes that have been made, the system has been updated for the many legitimate companies. This is because the dishonest people and the old con artists have been driven away by these changes. However, you should always be on the watch for new forex scams; the allure and allure of big riches will always drive new scammers with increasingly sophisticated techniques to this market. You should always be on the lookout for new forex scams.

do you need help?

A lot of those who contact us have questions and concerns about their personal and business data being compromised. We aim to arm you with the legal and technical know-how in the fight against scams. Also, we will be able to refer you to top scam recovery agencies.

Please fill up the form. Rest assured that our support team will get in touch with you

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