Instagram Forex Scam: Can Investor Profit Immensely via “Copy-trading”？

UKs FCA(Financial Conduct Authority) has always been at the forefront in the fight against scam brokers, and the regulator recently put several companies, including LukeTradesFx, on a warning list to help investors stay away from possible frauds.

Last year, a British guy who called himself the “Bill Gatesin UK” rose to fame overnight on the internet. Luke Blackburn, the owner of LukeTradesFx, was a 23-year-old young man from East Riding, Yorkshire, England. After dropping out at the age of 18, he quickly became rich by trading forex and it was only a few years before he turned a millionaire.

Claiming to be a professional forex trader, Luke has over 13,100 followers on Instagram. He kept on selling the so-called get-rich-quick scheme, saying that by “depositing on his trading platform and following his trading signals”, investors can easily “turn 300 pounds into over thousands of profits in just 5 minutes”. But his high-profile marketing also drew the attention of FCA and soon got a warning from the regulator for “providing financial services without authorization”.

Many self-claimed “forex experts” or “consultants” love to post trading profit records and other contents showing effortless gains through trading on social networks, such as Instagram, Facebook and Twitter. They claim that investors can get rich like them simply by following their “trading signals”, yet instead of profiting as the “signal providers” promised, investors that follow these signals often end up suffering heavy losses or negative balance.

Here are the tricks commonly used by illegal forex brokers or IB to promote themselves on social media:

1. Claiming to be professional traders to gain followers trust.

2. Baiting investors with so-called high profits, such as you only need to trade 5 minutes each day to make thousands of pounds out of 300 pounds.

3. Constantly featuring limousines, luxurious brands and holiday at exotic resorts in their social media posts to attract young audiences.

What to do if you run into forex scam？

If you have suffered from forex scam, you may send your evidences, such as deposit records, trading records, withdrawal application records and records of communication with the customer service or IB, to WikiFX at wikifx@wikifx.com, and well try our best to help you recover the lost funds.

As 2020 starts afresh, check out insights from WikiFX analyst on the latest trends of major currencies including US dollar, euro, pound sterling and Australian dollar, as well as stock indices, crude oil and gold. Download WikiFX App to get more fundamental analysis and market trend forecast.