NEW YEAR TIPS: 3 Questions You Should Ask to Avoid FX Scams

Unregulated brokers who block withdrawals can count as one of the worst nightmares of forex investors. Bear in mind that there's no such thing as a free lunch. Dont be fooled by empty promises of scammers and focus only on profits, because when you indulge yourself in the illusion of becoming rich, you can easily neglect the huge risks and potential losses that hide behind.

Recently, an investor from China reported the illegal broker AGX on WikiFX exposure forum.

Victim: Mr. Shen

Illegal broker: AGX

Cause of complaint: unable to withdraw money

Mr. Shens case review:

Last April, I met a “signal provider” in a stock discussion group. I followed his advice to open an account on AGX to make deposits, and since then I had been trading on the platform according to the “signals” he provided.

But after trading for a week, I lost more than 10,000 US dollars rather than profiting. Realizing this broker was extremely suspicious, I immediately submitted a withdrawal request on the AGX platform, but they kept on postponing my withdrawal. Neither could I reach the signal provider. But I didnt want to give up, as I still had a large balance in my account unable to be withdrawn. Finally, I decided to put pressure on AGX by exposing it on the WikiFX forum.

According to Mr. Shen, after he took the measure, AGX finally contacted him and asked him to post a clarification note on WikiFX exposure platform, promising that they would return his money; however, after Mr. Shen did so, AGX again disappeared, and the so-called “refund” became no more than an empty promise.

Many investors may have such questions: since there are all kinds of forex scams, how can I identify illegal brokers？ What are their common tricks？ How can I protect myself from such scams？

Firstly, what types of FX brokers that we should avoid？

-Any FX broker who has received a warning from regulator.

-Any FX broker who keep on nagging you to make deposits.

-Any FX broker holding a cloned license.

-Any FX broker who claims to be regulated while its actually not.

-Any FX broker that makes you pay fees that arent even in any term or condition.

-Any FX broker that doesnt allow withdrawals and blocks you as soon as you ask for a withdrawal.

Secondly, the following methods are commonly used by illegal brokers to defraud investors:

-Inducing account opening;

-Giving wrong trading signals deliberately;

-Trading on the investors behalf;

-Causing severe slippage;

-Causing negative balance through manipulation;

-Blocking withdrawal;

-Suspending investors account.

Finally, how to protect ourselves from forex scam？ In fact, for investors, the best way to avoid being cheated is to learn more about how to trade correctly. It takes a lot of time, education, patience and wisdom to gain profit in forex trading.

Another very easy method is to check the broker‘s regulation. When dealing with forex brokers or IB agents, don't believe in their empty promises such as “small investment, big return” or “no risks”. Instead, the first step you need to take is to check their company’s regulatory information and background. WikiFX App not only presents the regulatory information of more than 15,000 brokers, but also releases a large number of exposure cases for the reference of investors.