While the forex market presents countless opportunities for financial growth, it’s crucial to be aware of the potential risks and scams that exist. In this post, I will expose some common forex trading scams that unsuspecting traders often fall victim to. By understanding these scams, you can protect yourself and make informed decisions in the forex market.

How I was Scammed

Before I tell you the various forex trading scams, let me begin with a personal account of how I was scammed. This happened during my first year of trading. I was introduced into forex trading by a classmate of mine back in Uni. Before then, I knew what forex was but I had never placed a trade before. One of my classmates told me about his friend who was a “pro trader”. He offered account management services with a guaranteed 10% weekly return. 

At the time I was new in the industry to think that it was a scam. I was able to get some funds to invest and I never got even anything out of the “investment”. I lost all the money I gave to the “pro trader”.

Ironically, this story has a happy ending, after that incident, I decided I would learn everything there is about forex trading to never be scammed again and to never have anyone manage my account. Oh and by the way, my sister was pissed off but she got over it and even played a pivotal role in my trading journey, I will tell you how in a later blog post.

Common Forex Trading Scams in the Industry

Forex Scam Alert

Now that I have given you my personal account, be sure to learn from my mistakes. The forex industry just like any other financial industry has a lot of shady activities going on and if you’re not careful enough, you’ll soon have a personal account of yours to give. I can not cover all the scams going on in the forex industry because they keep evolving every day but I can’t give you examples of the top scams and without further ado let’s take a look at some of the examples.

1. Beware of Fake Signal Providers

One common forex scam involves fake signal providers who claim to have insider knowledge and provide accurate trading signals for a fee. These scammers often use persuasive marketing tactics, promising incredible and guaranteed profits and high success rates, as high as 90%. However, their signals are usually unreliable and often lead to significant financial losses. Remember, in the forex market, there are no guarantees, and it’s essential to rely on your own analysis and research.

2. Stay Away from Fake Forex Gurus

Another common forex trading scam is the false promise of expertise from self-proclaimed forex gurus. These gurus often market expensive courses and mentorship programs, claiming to have made millions through forex trading and they often post flashy cars and lifestyles mostly on Instagram. However, many of them are not genuine traders and make their money by selling courses or signals instead. 

To avoid falling for this scam, conduct thorough research, ask for a proven track record which can include their MyFxbook profile, legitimate trading journal or an investors password to their active trading account and see their performance in real time, and seek recommendations from experienced traders before investing your time and money in any forex education program.

3. Be Cautious of Fake Forex Brokers


Choosing a reliable forex broker is crucial for your trading success. However, there are fake and unregulated forex brokers out there whose business  model is to defraud unsuspecting traders. These scammers may create fake brokerage firms, offering attractive sign up bonuses and trading conditions, unrealistic leverage, and low spreads. 

It’s essential to verify the credibility of any forex broker by checking if they are regulated by a recognized financial authority and reading reviews from reputable sources before depositing your funds.

4. Avoid Trading Robots Promising Easy Profits

Trading robots, Expert advisors (EAs) or automated trading systems have gained popularity in recent years. Unfortunately, scammers exploit this trend by selling trading robots that promise effortless profits with minimal effort on your part. These robots often utilize manipulated performance data to convince traders of their effectiveness. In reality, relying solely on automated systems can be risky, as market conditions constantly change, and no algorithm can guarantee consistent profits.

It’s crucial to approach trading robots with skepticism and rely on your own analysis, if at all you have to use a trading robot, use one that you have created yourself based on your trading style and strategy or use one that has been tested thoroughly and the provider have long term data over several years proving that the EA is profitable.

Trading Robot

5. Don't Fall for Unrealistic Account Management Promises

Some scammers lure traders by offering account management services, promising unrealistic or guaranteed market returns. They may claim to possess a secret strategy or insider information that will generate substantial profits. However, such promises are often too good to be true. Legitimate fund managers will always highlight the potential risks and provide transparent information about their strategies including historical data to walk their talk. 

Remember, there are no shortcuts to success in the forex market, and anyone guaranteeing extraordinary returns is likely operating a scam. Before you authorize anyone to manage your money, make sure they are a certified money manager and that they have certificates to prove the credibility, and not just any certificates, they must have certificates from trusted financial bodies or institutions.

6. Stay away from Ponzi Schemes

Ponzi schemes are fraudulent investment schemes that rely on new investors’ funds to pay returns to earlier investors, creating a false impression of profitability. Some forex scammers operate Ponzi schemes, promising high returns and using money from new investors to pay earlier investors. Eventually, these schemes collapse, and investors lose their funds. Protect yourself by conducting due diligence, verifying the legitimacy of investment opportunities, and avoiding schemes that promise unusually high and consistent returns.


Forex trading offers tremendous potential for financial growth, but it’s crucial to be on the look out and informed about the scams going on in the industry. By recognizing the warning signs and staying cautious, you can protect yourself from falling victim to forex scams. Always conduct thorough research, verify the credibility of brokers and educators, and rely on your own analysis.

If the deal sounds too good to be true in the forex and any other financial industry, trust your instincts and run as fast as you can.

Subscribe to Our Newsletter!

* indicates required