The four scams
- Unlicensed broker: takes deposits, shows fake profits, refuses withdrawals or demands fees to release them.
- Clone firm: a fake site using a real firm's name and licence number. The regulator's register shows the real website; compare it.
- Account manager: a stranger offers to trade for you, often via remote access, and either loses the money or invents profits that cannot be withdrawn without a payment.
- Recovery scam: after a loss, someone offers to recover the funds for an upfront fee. Same people, second act.
Warning signs
- Unsolicited contact by phone, message or social media.
- Guaranteed or unrealistic returns.
- Pressure to deposit now or deposit more.
- A tax, fee or insurance payment required before a withdrawal.
- No licence on any register, or a registration passed off as a licence.
- A website weeks old, a virtual-office address, reviews that all read alike.
If you have deposited
- Stop depositing.
- Request a withdrawal in writing and keep everything.
- Report to your own regulator and the one the broker claims.
- Ask your bank about a chargeback quickly; time limits apply.
- Ignore anyone who contacts you offering recovery.
Prevention
Find the broker yourself, verify the entity on the regulator's own register, deposit a small amount, withdraw it once, and only then trade. That sequence defeats almost every scam on this page.
Trading forex, CFDs and other leveraged products carries a high risk of losing money. This guide is general education, not advice.