Top 5 Trading Scams That You Must Stay Away From
As a trader, the last thing you want is ending up with a scam broker. A trading scam is when you sign up with an online broker in hopes of making money but get nothing in return not because of failed trading attempts but because of the broker. The broker has ways to keep your money and never return it to you. In some cases, you can’t make withdrawals from your trading account, and in other cases, you just can’t seem to make any profits on your trades no matter how hard you try with XTRgatescam. If you want to avoid online trading scams, here is a list of the top five that you must stay away from.
The 5 Trading Scams You Must Avoid
1. AAFXTrading
When you take a first look at the website of this broker, things seem pretty normal. In fact, the way the websites has been designed is pretty impressive. But there are some bad people hiding behind this beautiful website design. The first clue you get about the scamming behavior of this broker is when you land on the regulation page. Usually, when you land on the regulation page of an online broker, you get a straightforward statement that the broker is being regulated by such and such entity. Some of the most trustable names in the regulating sector are CySEC, FCA, ASIC, etc.
However, when you land on the regulation page of this broker, you find none of these names there. In fact, you do not even get a straight answer as to whether or not the broker is regulated. The second sign that the broker is not legitimate comes from its margin and leverage page. Can you believe the broker is willing to offer you leverage of 1:2000? Somehow, you can get that leverage despite having thousands of dollars in your account. Last but not least, the margin requirements from this broker are some of the weirdest you will find on the internet.
2. IronFX
Again, you will notice that signs that you notice with any other scam broker. First of all, there is no clear statement that tells you that the broker is regulated by a well-known regulating authority. Secondly, you can easily spot many tactics that the broker has in place to attract new trader. Keep in mind that new traders are the easiest targets for online scams. These new traders do not understand the online brokerage industry, they do not have much idea of how trading works, and end up signing up with these brokers. So, you can see that IronFX talks about a huge 1:1000 leverage.
You will notice that most of the well-known brokers with clients all over the world do not offer such huge leverages. That’s because those broker do not rely on such cheap tactics to make new clients. They trust in their services and grab new traders through those services. You will see that IronFX talks about a lot of things in a way that only prove that it is targeting new traders. For example, the broker talks about offering 200+ different assets for trading. This number might look big to new traders, but it is actually very small for any experienced trader.
When you go on the websites of the best brokers, you will see that they give you access to hundreds of markets through thousands of assets. Yes, you can trade thousands of assets by signing up with those brokers. Based on that, 200+ assets for trading is not something to be proud of.
Another thing that you will see on the website of this broker is the account comparison. There is an account called ZERO FIXED, which offers spreads of 0 pips. Yes, that’s true, you will not be paying anything in the form of spreads. But how will you be paying the broker then? There is no mention on the accounts page. That makes IronFX even more suspicious. With other accounts, spreads start from 1.4 minimum, which is not competitive or the best spreads in the industry in any way.
3. UFX
You will have a hard time believing that this broker is a scam. Yes, that’s what the real scam is all about i.e. it does not seem like a scam. So, when you land on the website of this broker, you see everything that only the best broker should offer you. From great leverages to multiple trading platforms, you get everything from this broker that you as a new trader would want access to. However, there are a few things that do not seem right on the website. Again, as soon as you land on the regulation page, you start noticing things that are not normal.
If the broker is supposed to tell you about regulation and has a page dedicated for this purpose on its website, it should provide you with a straight answer. You land on the page and see a huge statement that says the broker is regulated. But that’s not the case when you go on the regulation page of this broker. Finally, you find out that it is being regulated by Vanuatu Financial Services Commission, an entity that you rarely ever hear about in the online brokerage industry. That’s because the entity is not reliable at all. In fact, you can find a lot of information on the internet that any brokers regulated by this particular entity are not legitimate.
In simple words, you can say that regulation from this entity is as good as nothing. The best brokers seek regulation from the well-known names in the biggest economies of the world. But if a broker has to go to a small island to obtain regulation while it operates in many countries of the world, you should know that there is something wrong.
4. Gainsy
First of all, the name of the broker does not belong in the industry. And that’s not it! Even the website of this broker does not look anything like the websites that are common in this industry. It looks more like the home page of an ecommerce website where you visit to purchase stuff for your home. Everything about this broker is complicated. When you look at the account types, it gives you so much information that you will find it hard to digest. According to many online reviews, the broker makes it difficult for you to get access to your money.
In many cases, when you find yourself in any kind of trouble, you will not be able to access anyone. At the same time, some traders who joined the platform claim that money was taken from their accounts without permission. In some other cases, the broker froze the accounts of its traders without telling them any reasons. These are some of the most common signs that you have signed up with a scam. Not to mention, most online reviewing websites do not consider it safe to trade with Gainsy.
There is a lot of information on the website to keep you distracted in unimportant things. But what happens when you want to know whether the broker is regulated or not? Well, the reality is that the broker is not regulated at all. All the big promises on the website are just hollow promises. At the same time, you should know that the spreads offered by this broker seem unrealistic. They are so high that you can easily find another online broker that offers you more flexible and loose spreads. The broker even claims that you can sign up with a PAMM account on the website and get $10000 for free to manage your account. Can that be possible?
5. Trade12
You can find a lot of negative information about this broker on the internet. There are any online reviews that explain why they consider it a scam. When you look at the website of the broker, you will see that it holds its traders to the highest standards of security. For example, you will have to submit your personal information. The broker will ask you to submit your identification because of the rules of the financial industry. The KYC and AML policies are there to make you shell out your information as soon as the broker asks.
However, when it comes time for the broker to follow the same standards, it does not follow them. Look at the website and you will never find any information about regulation because the broker is not regulated at all. This is one of the few brokers that have more than a dozen ways for you to deposit funds in your account. Seems like the broker is interested in making you deposit your money the most.
When you look at the banking page of this broker, you see an asterisk sign on the “fees” part. Under this heading, the broker states that you do not have to pay any fees when you deposit your funds using the stated methods. However, there is no explanation of what the star (asterisk) actually means. Perhaps, you will end up paying a commission you were never told about when you deposit your funds.
Final Thoughts
You can say that the online world can be cruel at times. It can blame companies for things they have not done. However, it is not a miracle that most of the renowned brokers on the internet that people sign up with from around the world do not have any negative information about them on the internet. When there are signs that tell you that a broker is a scam, you should pay heed to them for sure.
