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Regulated and Unregulated Forex Brokers

In terms of daily turnover, foreign exchange, or Forex (FX), dominates the financial sector. In April 2019, daily trading in FX markets increased to $6.6 trillion from $5.1 trillion three years prior.

Apart from its enormous size and a wide variety of trading platforms, the market is poorly controlled due to its decentralised structure. So, there is room for dishonest behaviour (some could even call it fraud), whether it involves Forex brokers or businesses that advertise secret trading algorithms. It might be challenging to separate good from evil.


Is the forex broker registered and licenced?

The regulations and legislation that businesses participating in the forex sector must abide by are referred to as forex market regulation.

Regulation’s main goal is to safeguard you against hidden financial risk, and dishonest business practices including pricing and order manipulation, and fraud.

The regulation aims to safeguard you from dodgy brokers acting unethically.

The vast, round-the-clock currency market is not governed by a single worldwide authority.

Instead, it is mostly the duty of each nation. The majority of nations have a regulatory body that establishes a set of guidelines and requirements that retail forex brokers must adhere to.

Every currency regulatory authority functions under its legal framework and regulations and enforcement vary greatly from one nation to another.

The regulatory body has the authority to impose penalties and take disciplinary action against a forex broker who doesn’t comply. These penalties, which may be severe, provide businesses with a strong incentive to follow the law.

Should the regulatory infractions be exceptionally serious or if the firm doesn’t successfully adopt modifications to prevent future violations, the regulatory body may finally decide to cancel that company’s operating licence if fines don’t work.

If this occurs, the forex broker will be operating unlawfully and without a licence and will no longer be able to conduct business in this area.

Several nations have different forex laws. This implies that not all regulatory authorities adhere to the same rules or provide the same level of financial security.

Each regulatory body has its own set of regulations and sphere of authority.


Regulatory Bodies

To operate legally and effectively, financial institutions must be licenced and supervised by regulatory organisations. Recognizing your Forex broker’s regulatory status is essential since it affects the security level.

The Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investment Commission (ASIC) in Australia, the Commodities Futures Trading Commission (CFTC), and the National Futures Association (NFA) in the United States are well-known regulating organisations.

For instance, the FCA is the prudential regulator for more than 24,000 of these companies and the conduct regulator for over 56,000 financial services companies and financial markets in the UK. They want to make sure that the financial services industry in the UK is reliable, cutting-edge, and capable of meeting the demands of all of its clients, from small businesses to large multinationals. The ASIC’s role, among other things, helps the financial system and the companies that operate inside it work better. They encourage consumers and investors to participate confidently and intelligently in the financial system.

While they are not well recognised, most nations do have regulatory organisations that keep an eye out for financial misconduct. Forex traders, for instance, are somewhat aware of Cyprus Securities and Exchange Commission (CYSEC), the country’s financial regulatory body.

As you can see, regulation is a very significant factor. It is wise to take the effort to make sure your selected Forex brokerage supports this.


Unregulated Brokers

Even though financial regulation lends credibility, some Forex brokers choose to operate in an offshore jurisdiction where the supply of Forex trading services is not regulated.

It is expensive to establish and maintain a regulatory licence. Unregulated brokers save costs since they do not incur this cost. The FCA states that yearly payments are based on the scope of the firm’s operations, the sorts of regulated activities it engages in, and the cost of regulating those activities.

So why would traders choose an uncontrolled broker over a managed one?

Higher leverage is a typical justification. Exaggerated gains sometimes tempt traders, denying the possibility of equally disproportionate losses. Other brokers entice traders with guarantees of significant gains.

Despite being widespread, unregulated brokers are not in any way against the law. Your ability to seek relief is the major thing you stand to lose. Regulated brokers may not always treat you properly, but if they do, they risk legal repercussions. At the absolute least, a licenced Forex broker must adhere to the rules.

Important things to keep in Mind

When picking a Forex broker, whether licenced or unregulated, traders are advised to take the following factors into account in addition to the regulatory aspect, which is by far the most significant:

  • Demo Accounts. A demo platform must be free and provide the same circumstances as real-time, live marketplaces.
  • A wide variety of markets. There may be times when you wish to venture outside of currency trading and learn other markets outside the EUR/USD, such as trading in stocks, commodities, indexes, or cryptocurrencies. You can stick with the broker you’re accustomed to if you have this option.
  • Tight spreads. Wide spreads are no longer used. Spreads have gotten so tight that, in terms of cost, they essentially have no value unless you’re actively trading Forex utilising an intraday model.
  • Transparency. It’s important to understand the goals of the Forex broker. Where do they have their offices? Are they governed, and if so, by what entity? What do they stand for? Their track record in customer service? What is their source of income? You might call or contact the brokers; in essence, you’re seeking brokers who satisfy your requirements.
  • Various tools. To trade Forex profitably, traders need a variety of tools. Reputable trading platforms—most Forex traders nowadays use the well-known MetaTrader 4 and 5 packages—are a top need. Most retail traders also frequently ask for additional tools like an economic calendar, a correlation matrix, and position size calculators.
  • Education. Education of high calibre is crucial. The foreign exchange market seeks information from professionals in the field. If the brokerage business you’ve picked provides this service, it’s undoubtedly a bonus because it shows that they are attentive to customer demands. Market research is still another important factor. To provide both experienced and novice traders with a variety of trading ideas, both fundamental and technical trading methods should be included.
  • Broker evaluations. Featured brokers can be contrasted side by side, often arranged by rating and regulation. Choose just those with verifiable independent reviews.


Identifying a Forex Scam

A financial market is exactly what Forex is. Forex trading, where investors purchase and sell various currency pairings, is thus a lawful activity. As the foreign exchange market is decentralised, there isn’t a single physical place where investors may go to buy or sell their preferred currencies. Decentralization also refers to the fact that authorities or regulators from several locations regulate or oversee the market rather than a single organisation or agency. Money is the primary commodity traded between participants in Forex trading. Because of this, currencies are exchanged in pairs. You sell one currency when you purchase another, and the opposite is true.

For instance, when you purchase the euro and sell the US dollar when you go long on EURUSD, you are hoping that the euro will increase against the US dollar. Although forex has been around for a while as an investment option, it has only recently been broadly accessible to retail traders. Forex is typically traded as a CFD by retail investors, who are not required to possess the underlying currency. Investors who trade CFDs speculate on the price movements of financial assets, allowing them to benefit from both increasing and decreasing prices. Leverage is a big draw when trading CFDs. To hold a much greater position in the market, traders just need to deposit a little amount of margin with their broker. This implies that gains from profitable transactions are increased. Yet here is where leverage may be dangerous because it increases losses on losing bets. Forex is, therefore, primarily a high-risk, high-return activity.

So why do Forex Scams exist?

Around $7.2 trillion is exchanged internationally every day on the forex market, which is by far the biggest financial market in the world. With such a startling number and the magic of leverage, there is always a great chance of making money on the Forex market, albeit there are also many hazards involved. There are almost no entrance restrictions for retail traders because technology has democratised the Forex industry.
Because anybody may start trading immediately, even though forex trading involves a considerable lot of knowledge, ability, and experience, susceptible individuals are drawn to the possibility without fully appreciating the inherent danger. Since Forex is such a huge goldmine, dishonest firms try to entice unwary clients by promising them the chance to make a lot of money constantly. They present Forex trading and the potential for profit as quick and simple processes. Forex scams will continue to exist as long as there is a profitable forex market. So, it is wise for investors to be able to recognise and stay away from Forex scams in all of their forms.

Types of Forex Scams

There are many different types of forex scams, some of which are more obvious than others. These may originate from brokers as well as from non-broker sources. Although many of the services that are now offered are legitimate, spotting scammers may be quite difficult. Yet, dishonest con artists take advantage of what are often real offers by using trojan horse-style techniques. These are a few of the typical lawful services that con artists frequently abuse:

  • Competent Fund Managers
    Establish the credentials and experience of the fund managers. In reality, many fraudulent funds’ fund managers are not the certified experts they represent themselves to be.
  • Overhyped Returns
    Fraudsters frequently make exorbitant historical returns claims and display data that surpass market standards to entice investors. Make cautious to verify these claims and avoid making investments impulsively.
  • Significant Management Fees
    Fees are relatively common, but before investing, read the “small print” to understand what they are, how to withdraw money from the fund if you desire to, and any potential penalties for doing so too soon.

Fraud using EA/Trading Robots

Trade robots and EA (Expert Advisor) modules are frequently offered as value-added services by reputable brokers and are capable automated trading tools. Investors need to be aware that trading platforms simply automate manual trading strategies. Although there are automation advantages, making endless riches isn’t one of them. Regrettably, there are con artists that provide services that aren’t what they promise to be. Important things to take into account while assessing automated trading solutions include:

  • Limitless profit promises
    Fraudsters will make claims like “guaranteed riches” or “churn out unending gains from the markets round the clock.” This is just untrue, and not even the finest solutions with the best reputations can guarantee accuracy that is 100% accurate or even near to it.
  • Exceptional trading tools and a small number of “approved” brokers
    This is a common con where investors are promised free software or are sold in exchange for a deposit with a broker who has been “recommended.” The purpose of the con artist is to entice gullible investors with unfulfilled promises to earn a commission from introducing new clients to a broker.

Forex Trading Signals Scams

Trading signals provide traders with trade proposals or ideas that will enable them to profit from market opportunities.

Signals can be produced manually or automatically by people, organisations, or both. To provide trading signals, they can utilise either technical analysis or fundamental analysis, or perhaps both. There are numerous reliable signal services, however, there are also scam offerings and important red flags to watch out for:

  • Higher precision
    Statements like “90%+ accuracy” should immediately raise red flags. This degree of precision is beyond the capabilities of even the finest traders and technology. You may compare their prior signals to historical market data with a little research.
  • With “recommended” brokers, Free signals
    When you join up and make a deposit with the broker they propose, introducing brokers and affiliates who are paid a commission by recommending new customers to a broker will frequently claim to be able to provide you with Free Signals.

Here are a few instances of outright fraud that must be avoided at all costs:

Forex “Holy Grail” Scams

Scammers are aware that finding and seizing the greatest trading chances on the market is the most challenging aspect of complete trading activity. When naive investors find the “holy grail” trading strategy that will drain gains from the market 24 hours a day, seven days a week, they assume they will be on the road to endless wealth. Any advertisement for trading software or a firm that promises to offer the “holy grail” trading technique that would protect you from market losses is a fraud and ought to be avoided at all costs.

Scams with Guaranteed Returns

Even though this is perhaps the least sophisticated fraud, it nonetheless attracts victims. Investors are urged to sign up for a service or business that trades the forex market in this scam in exchange for the promise of regular, set returns. Given how quick and active the forex market is, this is a complete hoax. Forex trading involves both gains and losses, neither of which can be predicted. It is almost impossible to produce gains on the market that are assured. No method is perfect and will not result in some losing trades, so beware of anybody who guarantees profits out of the Forex market is only out to take your money away from you.

Scams by Forex Brokers

The unsettling aspect of Forex scams is that certain Forex brokers may potentially be involved in their execution. Here are some of the most common con games out there:

Manipulation of prices

The scam that con artists use the most is this one. Some brokers intentionally manipulate their trading systems to the detriment of traders. Negative slippage, where entry and exit orders are completed at prices unfavourable to the transaction, is one possible manifestation of this. For instance, a purchase order is completed at a significantly higher price, which reduces, if at all possible, the potential gains from the deal. Also, there is “stop hunting,” in which the broker tries to eliminate the investor-applied stop loss before moving on to stream the accurate prices. In essence, price manipulation will cause investors to place losing transactions.

Extraordinary high leverage

In CFD trading, leverage is a fantastic concept. Yet leverage always has two sides to it. Profits from profitable transactions can be substantial, but losses from losing deals can also be substantial. Some brokers promise investors extraordinarily high leverage ratios of up to 2000:1 in an effort to entice them with claims of large gains, but market risks can cause a single failed transaction to wipe away the majority of a trader’s balance.

Unsegregated Client Bank Accounts

Scam brokers sometimes manage a single bank account for both the cash of their clients and their operating funds. This implies that they will be more inclined to look for methods to support operations using client money when funds on their accounts are running low. This is a very terrible business practice, and if the broker is unable to pay their debts, your money will be linked to theirs and may be taken by their creditors.

Fake promotions and bonuses

Incentives and promotions are frequently provided by brokers, even trustworthy ones. Brokers that are registered and licenced must make sure that any bonuses and promotions they offer adhere to legal requirements and don’t “lock” the trader. Yet, some dishonest brokers entice investors with false promos that feature onerous or completely unreachable terms and conditions. This implies that their investors will nearly never be able to take any winnings before they lose their trading money. It’s usually true if something seems too wonderful to be true.

Personal Data Fraud

You will be needed to provide some of your private and personal information when joining up with a brokerage business, as well as perhaps payment information like credit card numbers. To guarantee that your data is kept private and is never shared with or sold to a third party, a licenced and registered broker is obligated to implement the essential security measures. Scam brokers might not take the appropriate security measures or, worse yet, they might sell your information to a third party. These third parties can start contacting you with offers you haven’t chosen to receive or send you unwanted emails. Innocent investors may sustain losses as a result of identity theft and the sale of personal information.

How to avoid broker scams

In comparison to other scams, broker scams are more cunning and damaging. A business that ought to be your trading partner could turn out to be your biggest opponent. It is crucial to be able to spot them and stay away from them entirely. How to avoid broker scams
In comparison to other scams, broker scams are more cunning and damaging. A business that ought to be your trading partner could turn out to be your biggest opponent. It is crucial to be able to spot them and stay away from them entirely. Regulation with a respected organisation is the first step in locating a reliable broker. Brokers that are subject to regulation are required to manage segregated bank accounts for client monies that are distinct from their working capital accounts. They are moreover exposed to sporadic platform audits to guarantee that they consistently provide consumers with transparent trading services.

Authorities also make sure that brokers don’t make unsupported promises or employ questionable marketing strategies. Investors also have some recourse against a third-party organisation whose only responsibility is to safeguard investors in the event of a dispute. Investors should study evaluations from reputable websites online in addition to the regulation, where they may read about other traders’ actual experiences. Several review websites also carefully examine complaints as well as security and safety concerns, such as KYC procedures and website encryption requirements.

How to Spot Bonus Scams in Forex Trading

In recent years, forex trading has been quite popular, particularly during the Covid Era

Yet, luring retail investors to your platform necessitates marketing work, which notably frequently manifests itself in the form of welcome, deposit, or refund benefits.

Regrettably, both professional and novice fraudsters seize the chance to take advantage of incentives like this. Let’s examine how your forex trading software can now identify bonus misuse.

How Does Bonus Abuse Affect Forex Trading?

Incentives are designed to assist draw in new clients and keep existing ones. Your FX platform stands to lose a lot of scammers who take advantage of them:

  • Every incentive offered is money you won’t receive back from your marketing budget.
  • Fraudsters are drawn to your platform by your perks, and once they’re signed up, they may cause all sorts of trouble, driving up chargeback rates and problematic transactions.
  • Possible legal and KYC difficulties: The fundamental component of bonus misuse is multi-accounting. Moreover, fraudsters will utilise stolen identities to open several accounts. Your compliance requirements might suffer as a result, which is risky.
  • The greater quantity of manual reviews: It takes time and effort to separate the good users from the bad ones. Your risk team would presumably prefer to spend these funds elsewhere.

How Can Bonus Abuse In Forex Trading Be Spotted?

Several accounts made by the same individual are crucial factors to consider when trying to find and stop bonus abusers, as was previously indicated.

It may be an alone, simple fraudster. Alternatively, it may be a big network of organised crime. The outcomes are the same: dozens of accounts coming from the same source try to benefit from your incentive programme.


The way you respond should be guided by this information. Here are a few possibilities:

  • Increased identity verification standards? IDV is wonderful in principle, but it can be difficult to implement, especially if you want to increase your user base.
  • Additional reviews of manuals? This might be effective, but your organisation might not have the resources required. That doesn’t scale, too.
  • Behavioural research? Sometimes it’s necessary to look at how users engage with your FX platform to determine who will be high-risk or not. You can achieve this with the aid of a smart fraud protection tool.

Identifying relationships between accounts? This is an important technique to adopt to spot fraudulent accounts as soon as they start using your platform to sign up or even claim incentives.
To reach the sweet spot that attracts more consumers without taking on too much risk, you should frequently assess your incentive programme in addition to optimising your bonus abuse prevention.

Top 3 Individual Guidelines to Prevent Bonus Abuse in Forex Trading

Let’s explore the rules to implement on your FX exchange in more detail now that we have a clearer understanding of our risk approach intended to identify bonus abusers.

1:Password hashes are the same among users

Bonus abusers who set up several accounts are unable to spend hours methodically constructing every aspect of their registration to build a false identity. They occasionally use the same elements again. And in this manner, proof of a link between several accounts might be missed.

With a password hash, this is more obvious than everywhere else. This is a password-generated, anonymous identification parameter that is encrypted. When two of them match, it indicates that even though you can’t read the password, the users have the same password.

Also, the chance that you’re interacting with the same individual increases if two or more people have the same password hash.

It should be noted that the identical rule may be produced using either a browser or device hash. They examine various software and hardware setup settings (OS, window size, device version, etc.).

Based on these choices, you may make distinctive identifiers to identify connections between people.

2: Cookies turned off by the customer

The browser that a user selects to access your website delivers a wealth of information, speaking about browsers. The use of their configuration as an identifier has previously been highlighted, but you may also concentrate on certain data points that are regarded as questionable.

In the context of this rule, a lack of data points—missing cookies on the user’s end—raises concerns.

Why does this seem odd?

There are two possible outcomes. One, you’re working with a new session or a privacy-focused extension.

Yet, it’s also possible that you’ll be bringing on a user who uses a browser that is made to evade anti-fraud detection.

Once more, this is a sign that you’re dealing with a pretty experienced fraudster who manually generates several accounts (or uses bots). The very fact that they’re attempting to hide their identity should raise red flags.

3:IP and Card Country Do Not Match

Two rules used at the signup step have been examined thus far. Another critical period to keep an eye on consumers is when they make their initial deposit onto your FX platform.

There is still time to gather further data to detect fraud because it’s likely that you only permit clients to claim their incentives after that step.

Here, a straightforward custom rule is created to assist us in identifying cards associated with a place that is distinct from the IP address.


This addresses two potential deception strategies.

The consumer is signing up for a VPN (which we can also identify) while using their actual card to disguise their IP address.
Your situation can include a stolen credit card, which is more concerning. In both cases, you should raise the deposit’s risk score to request additional verification.

Finally, it’s crucial to remember that the sort of card you are using may be a sign of fraud. For instance, prepaid cards have a larger risk than regular credit cards.

How iforexview Helps Foreign Exchange Trading Firms in Combating Bonus Abuse

Ifoexview is made to enable you to ask your broker for as much information as you can with the aid of reputable financial attorneys. Since they are experts in their fields, these lawyers.

To eliminate low, medium, and high-risk interactions with your platform, we even enable you to define rules that evaluate user behaviour.

You should be able to manage risk more effectively as a result. This is essential for FX trading platforms to identify links between clients intended to take advantage of your promotions and bonus programmes, both at the registration stage and between existing accounts.

Interested in finding out more about how iforexview might benefit your forex trading business? Get a demo or register for free right now.

Can You Get Your Money Back After a Forex Trading Scam?

Just 15% of the 10 million forex traders worldwide actually turn a profit, according to the facts about the market.

Without a shadow of a doubt, forex trading is a successful industry. But not everyone is a fan of FX trading.

You must understand how to interpret signals and know when to purchase and sell currencies if you want to be a successful trader. You need to come up with a plan that involves careful thought. To be successful, the trader has to possess the necessary skills, knowledge, and experience.

By creating an online trading account, you may start trading forex. Nowadays, opening a trading account is simple. To provide you with the interface to buy and sell forex, you need a forex broker. A deposit is required in your trading account as soon as the paperwork for account opening is complete.

Many brokers have been seen in the market offering forex traders deals that are unparalleled. Your money is in danger with them because the majority of them are frequently large frauds. These days, it comes as no surprise when a trader is duped by one of these brokers.

Have you ever lost money using a forex broker to trade online? Never give up. Always, there is some light at the end of the tunnel.

Are there any ways to stop forex scams? Can you get your money back from a forex scam?

Potential Methods for Recovering Scammed Money

There are several possibilities, but the following has a high success rate. Let’s talk about it first.

  • Businesses that recover money
  • Finding experienced forex recovery businesses is the first course of action you should take if you lose money in a forex scam.
  • Deciding to engage in financial trading, including binary options, cryptocurrencies, and forex, is not simple. You will require a specialist that is well-versed in the field. Once more, you will need to rely on a variety of different experts, including attorneys, psychologists, and tech-savvy people. With a rehabilitation specialist, they are all conveniently reachable.
  • The experts have the knowledge, expertise, and training to defend your interests in court. They have more knowledge about the field and how things work. As a result, there is a greater probability that your money will be recovered from forex fraud.
  • They also have more effective recuperation techniques. It’s not easy to get your money back after falling for a scam. So, it is advisable to delegate the task to someone who can aid in your monetary recovery. You conserve a significant amount of time, money, and energy in this way.

Regrettably, there is no assurance that your money will be recovered. That is a difficult thing to accept. So to prevent falling victim to a scam in the future, it is important to be aware of it.

As a forex trader, what should you anticipate?

As a word of caution, if you trade forex, be sure to know about at least one reliable Fund Recovery Business. Several people are offering this expert service. Hence, you won’t seek assistance by running from pillar to post in a circumstance like being conned. You can speak with a reputable, licensed, and experienced fund recovery expert.

Be careful of the following while choosing the company to recover cash for you:

  • Must be governed and authorized
  • Be prepared to assist.
  • Must be equipped with the necessary knowledge and abilities.
  • Must possess experience

Several Methods for Recovering Money from a Forex Scam

If you notice that a fund recovery specialist won’t assist, you start seeking. You’ll have a few more options available to you. Yet you can’t always get what you want. Yet, there is no danger in trying it. What are these other options that you have, then?

Regulatory Authority Complaint

Similar to other businesses, the forex market is governed by many bodies. In the forex market, there are trustworthy brokers. Yet, very few rogue forex brokers operate covertly. A regulatory body might be able to assist you in getting your money back from currency fraud. But not with certainty.

A regulatory body’s job is to foster healthy competition, market integrity, and consumer protection against currency scams. But, if you are making a complaint about a broker who works for them, they will extend the help. It is challenging for the regulatory body to assist you in any manner if the broker is not registered.

As a result, using a broker who is registered with the regulating body is advised. Check out the organizations that oversee brokers before opening an account with them.

If a broker engages in any fraud, they may have to operate without a license. The regulator has the right to revoke their license. to work in the industry,

Carefully handle the con artist

This choice could be successful for you if you are skilled at psychological strategies. However, there is no assurance that you will experience results. Never be combative while dealing with the broker; always be kind. Make irrational promises to them. Assure them that you accept their claims and are prepared to conduct further business with them.

Never prioritize money at this moment. Telltales that will benefit the broker. You will succeed in persuading them if everything goes according to the broker. By doing this, you will improve your chances of getting your money back.

Yet, the reality is that after completing their task, the majority of these brokers never return. They could be out of your reach.

Money Recall

The recalling of money relies on how you gave the forex broker the deposit.

The alternatives for your cash recall are as follows:

  • Request a chargeback if you have financed your account with a credit card.
  • Make an effort to call back the wire transfer if you utilised it as the medium.
  • Raise a dispute if you’ve utilized the PayPal platform.
  • Try reaching out to customer service and looking into the possibility of calling back your monies if you deposited the money through any other method.
  • These choices might provide you with the outcome of the monetary recovery. Yet, it is difficult to get your money back from these fraudulent businesses. They adhere to the deposit methods that are used.

Using a registered broker makes it simple to locate them and reclaim your money via a fund recovery specialist. It is a great choice to get in touch with a money recovery specialist if you desire compensation for your losses. They are familiar with every facet of the business and may provide you assistance in recovering your money.

How To Know, That The Broker Is Fraud!


Many online brokers operating in various regulatory frameworks are available, and it is anticipated that, as fiduciaries, they will act in your best interests. Each will need to operate inside an administrative framework, however, there will also be various financial environments and geographical areas to consider. This essay seeks to guide a reader through the potential hazards associated with joining an online broker and how to evaluate a broker efficiently.
While some brokers may “cut corners” to avoid regulation, fully complying ones will provide you with a fully regulated service, placing your financial interests ahead of their own. Of course, there are those dishonest brokers out there who are drawn to the potentially significant and consistent transactional money flows and custodial activities. Knowing the warning signs is crucial to avoid those brokers at all costs. Nobody desires to be the next victim. A “checklist” to use when determining which online broker to use and what amount of protection a customer should have in place is included in the synopsis.

While some brokers may “cut corners” to avoid regulation, fully complying ones will provide you with a fully regulated service, placing your financial interests ahead of their own. Of course, there are those dishonest brokers out there who are drawn to the potentially significant and consistent transactional money flows and custodial activities. Knowing the warning signs is crucial to avoid those brokers at all costs. Nobody desires to be the next victim. A “checklist” to use when determining which online broker to use and what amount of protection a customer should have in place is included in the synopsis.


The best way to recognize fraud:

For the avoidance of doubt, it is essential to understand the difference between regular investing losses and online broker scams. Operating at a loss on your investments does not prove that you were a scam victim. There are also times when a genuine mistake may have occurred. Again, it is not fraudulent; nevertheless, if it develops into a recurrent problem, a careful study will be required. When your broker puts its interests ahead of yours, it should be your primary cause for worry. Or, at the very least, the distinctions between the two are hazy. It is where ethical obligations might get compromised, and a warning sign that fraud may be going on should be highlighted.


Several different sorts of online broker fraud may be used to determine whether you could end up a victim of financial crime. – Has your online broker used discretionary authority rather than your prior approval to conduct a trade? This kind of conduct is against the law and maybe a cover for internal trading. – Is your online broker not promptly executing your purchase orders? If that’s the case, your order may be being executed around by front-running your instruction or internal trading. – Have you ever been requested to use a different address than your home or place of work, or possibly had information about you used for reasons other than setting up your account? Any recommendations of trades outside of that framework by your online broker might be viewed as dishonest since they should already have a map of your investing preferences. – Has your broker offered you false information or trading strategies that might have influenced your choice to invest? If your online broker provides trading advice, it must be supported by real data or open modeling. Any broker who makes claims of having “inside knowledge,” unsubstantiated financial advice, or false information about the advantages or hazards of investing might be engaging in dishonest business practices. – It is crucial to keep an eye on the fact that an excessive concentration within the portfolio might result in excessive losses with one asset for clients who have a discretionary connection with their broker.  Also, it is important to monitor any recurring patterns of overtrading or churning. Both actions could reveal if you are a scam victim. Online broker clients must be able to monitor the deposits and withdrawals of their money. Any withdrawal delays that are chronic and go beyond what is customary should be notified.


In the actual world, there are case studies.

Without wanting to sound alarmist, there are numerous instances of unethical behavior in financial markets all around the world. Each will result in a certain regulatory misuse, but in every case, the end client loses out. Clients must be made aware of the tendency for financial misbehavior to occur during times of significant market volatility and trading activity. At times of intense financial activity, it may be simpler to mask fraudulent behavior. No one type of fraud is more common than any other, yet both business and consumer fraud are very common. A broker balancing customer accounts to close out an internal account when the assessment of an asset is more challenging to mark is one example. Another is an online broker operating as an affiliate rather than a principal.

It has also been observed that ramping up or front-running an existing internal position is a common fraudulent practice. Under these circumstances, the asset in question’s underlying liquidity plays a crucial role. Customers should be mindful of indications relating to alleged “insider trading,” which is another more prevalent kind of wrongdoing, where a broker may have secret knowledge that they mistakenly divulge to pique interest in investing. When punishing such behavior, the regulatory authorities may not always make a distinction between the broker and the end user.


Regulations are in place to safeguard customers

Even though the aforementioned instances are extremely uncommon, the effects of falling victim to one of these fraudulent practices shouldn’t be understated. After the global financial crisis of 2008, the situation has caused the regulatory framework to be strengthened. In general, the regulation of internet brokers has been strengthened to give the final customer far greater safety and transparency. There are, of course, several regulatory support levels that can be established at either a local or global level. It is crucial to understand the authorized regulations that your online broker has agreed to because there is frequent cross-regional consultation.


Verify that your broker is completely licensed and approved.

  •  Spend some time reading the fine language and evaluating the level of protection provided by the applicable regulator. Be aware that certain  multinational or international brokers may have had to adhere to multiple regulatory frameworks.


  • The broker’s website is safe and secure, and it uses encryption techniques to guard against outside interference.


  • The broker conducts business with reputable, regulated banks in the country in which it is registered and is adequately insured.


  • To prevent going out of business or being told to stop trading, the broker can ring-fence customer funds.


  • The broker completes deposit and withdrawal transactions in three working days.


  • A speedy answer to any questions the customer may have is made possible by the broker’s specialized client live support mechanism, which is available around the clock.


  • Before deciding to execute using their trading platform, check any reliable broker reviews or client comments.


  • Verify that the broker offers products that are appropriate for your needs and that the variety of trading instruments it offers is available.


  • To ensure a better knowledge of how the broker manages your money, a client can try the broker’s demo account.

Listed Scams: Make sure you are not another Victim!

Everyone likes to believe they wouldn’t ever fall for a scam. But, over the years, several really intelligent people have fallen victim to con artists with cunning, well-established schemes, and even seemingly trustworthy businesses. In retrospect, some of the largest frauds in history may have seemed obvious, but at the time, investors had little cause to be wary. So what can we infer from the past? How can we prevent a similar situation? To protect you, your money, and yourself from potential investment scams, we examine some of the largest frauds ever.



There are more than $8 billion at stake.

The well-known cryptocurrency exchange FTX debuted in May 2019 and declared bankruptcy the previous year. Bankman-Fried (SBF), the founder and former CEO of FTX, has been charged with fraud. SBF has made a fortune in the crypto industry thanks to the successful career he and the business he created, FTX, have built over many years. Yet everything vanished into thin air when FTX collapsed. FTX experienced a crisis after SBF covertly transferred $10 billion in client funds to his proprietary trading company, Alameda Research, according to Reuters. Money is missing—at least $8 billion. Eventually, Bankman-Fried was detained, but a federal magistrate in the United States later granted his release on a $250 million bond.


Black Diamond Financial Services

The sum in question: $35,000,000

From 2007 through 2010, the “Black Diamond” fraud took place. By managing many hedge funds, Keith Simmons and Deanne Salazar collaborated with other partners to con clients into making investments in the foreign currency markets. 240 clients over several years invested $35 million until their filthy laundry was out. Keith Simmons is accused of defrauding $35 million worth of hedge fund investors. Black Diamond Capital Solutions was revealed to be a pyramid scheme where investors received no return and their money was never utilized in the foreign exchange market. Following a thorough investigation by the CFTC, America’s financial regulators, Keith Simmons and Deanne Salazar received sentences of 40 years and 4.5 years in jail, respectively.


Trade FVP

The sum at stake is enormous but not known.

Online forex broker FVP Trading is a Ponzi scheme. Numerous traders’ funds that they had invested in the broker had been frozen. The broker continues to employ a variety of techniques to maintain clients’ trust in it, including hosting offline seminars and making claims about receiving purported third-party money. The director of the FVP Trade Representative Office in Quang Binh, Vietnam, was detained on August 8, 2022.



There are 1.9 billion Thai Baht at stake.

The Forex-3D Ponzi fraud was exposed by Thai police in 2019. Celebrities and government leaders are among the clientele of Forex-3D, a brokerage that provides investors with short-term, high-return products. Thousands of people were duped by the scheme, which was fueled by celebrity rewards. Savika “Pinky” Chaiyadej, a well-known Thai actress, her mother Sarinya Chaiyadej, and Surayuth Chaiydej, her older brother, were among the 19 persons detained for allegedly robbing customers of their money using a “Forex-3D scam.” Via the website forex-3d.com, the con trick convinces victims to finance their money in foreign exchange with the promise of a 60–80% return. Those who invested, however, did not receive the promised returns on their investments. The DSI reports that around 14,000 people were conned.


Capital Oli

Amount at issue: $50,000,000

Oli Capital is an Australian-based provider of financial services that was founded in 2018. Oli Capital invests in a variety of companies, gold, and hydrogen energy concept projects, according to its website. Recently, Oli Capital failed, and it’s thought that the CEO fled with the money. The problem has gained attention in particular because of an open letter reportedly written by Qi Luo, CEO of Oli Capital, to all investors. The letter enraged many investors because it was combative and even confrontational. The problem is still present. We’ll monitor the circumstance.



The fact that there was virtually never a meaningful method for investors to recognize they were about to be defrauded of a significant sum of money is a disturbing component of these frauds. Fraudsters are often dealt with, found guilty, and frequently sentenced to lengthy jail terms, but investors are not always entitled to get their money back. The executives engaging in these types of fraudulent operations are incredibly cunning and frequently get away with it for years, concealing their actions from investors as well as auditors and regulatory bodies like the SEC.

What can investors do, therefore, to safeguard themselves against fraud? Maybe the most crucial step is to diversify your portfolio as much as you can. You should diversify your assets among several businesses in case one fails, whether due to fraud or just declining profitability. If you invest in a company that ends up at the centre of the next big stock market controversy, you may still only lose a small portion of your money thanks to a well-diversified portfolio.

The five most significant financial (forex) fraud instances in recent memory are listed above. Iforexview’s top priority is always to safeguard the legitimate rights and interests of forex traders. Iforexview made these examples public to raise awareness of the dangers among all traders. Every trader should use caution when choosing a broker. Iforexview monitors trends, offering real-time information on specific traders and assisting investors in avoiding shady brokers. Make sure to start a case against a broker if you want to find out if they’re secure.

Revolutionize Your Forex Brokerage Business with Fintech Solutions

If you are in the forex brokerage business and have not yet embraced fintech solutions, then it’s time to take notice. Fintech is rapidly transforming the financial landscape, bringing with it a wealth of benefits that could help revolutionize your brokerage business. From automated trading platforms to AI-powered bots and blockchain-based settlements, fintech can help streamline operations, reduce costs, and enhance customer satisfaction. In this blog post, we will explore how you can leverage these exciting innovations to stay ahead of the competition and transform your forex brokerage into a cutting-edge enterprise that delivers exceptional value for clients.

What Are Fintech Solutions?

Fintech solutions are innovative financial technologies that enable businesses to streamline their operations, reduce costs, and improve customer experience. They include mobile banking, cloud-based accounting, artificial intelligence (AI)-powered financial advice, and blockchain-based payments.

Fintech solutions help businesses save time and money by automating repetitive tasks, such as data entry or reconciling accounts. They can also provide real-time insights into financial performance, helping businesses make better informed decisions. In addition, fintech solutions can improve customer experience by offering convenient and user-friendly features, such as mobile banking orchatbots.

The use of fintech solutions is growing rapidly in the financial services industry as businesses strive to remain competitive. Many traditional financial institutions, such as banks and brokerages, have already adopted fintech solutions to enhance their operations. However, there is still considerable room for growth, particularly in emerging markets.

Fintech solutions offer a number of benefits for businesses operating in the forex market. For example, they can help businesses to automate FX trading strategies, manage risk more effectively, and comply with ever-changing regulations. In addition, fintech solutions can improve customer experience by providing sleek and user-friendly platforms for online trading.

If you’re looking to revolutionize your forex brokerage business with fintech solutions, contact https://iforexview.com/fintech-consultancy/ today to learn more about what we can offer.

Benefits of Fintech Solutions for Forex Brokerages

In an industry as competitive as forex brokerage, any edge can make a big difference. And that’s where fintech solutions come in. Here are some of the benefits that your brokerage can enjoy by incorporating fintech solutions into your business:

1. Increased Efficiency: Fintech solutions can help you streamline your operations and improve your overall efficiency. This can lead to lower costs and higher profits.

2. Improved Customer Experience: Fintech solutions can also help you provide a better experience for your customers. This can lead to more loyal clients and higher customer lifetime value.

3. Greater Innovation: Fintech solutions tend to be very innovative and offer unique features that can give your brokerage a competitive edge.

4. Enhanced Security: With the increased use of online services, security is more important than ever in the forex industry. Fintech solutions can help you protect your clients’ information and reduce the risk of fraud.

5. Compliance with Regulations: The forex industry is highly regulated, and fintech solutions can help you ensure compliance with all the relevant regulations.

By incorporating fintech solutions into your forex brokerage business, you can enjoy all these benefits and more. So what are you waiting for? Get started today!

Technologies to Consider Implementing

In order to revolutionize your forex brokerage business, you’ll need to implement various fintech solutions. Some of the technologies you should consider include:

-A secure and efficient payments solution: This will help you streamline payments between your clients and your business, and make sure that all transactions are secure and compliant.

-An AI-powered chatbot: Chatbots can provide 24/7 customer support, answer questions, and even help with account management. Implementing a chatbot will help you improve customer satisfaction and retention rates.

-A mobile trading app: A mobile trading app will allow your clients to trade on the go, wherever they are. Make sure to choose an app with a user-friendly interface and advanced features like real-time quotes and charts.

Adoption Challenges

Forex adoption has been growing steadily over the past few years as technology has made it easier for small businesses to get started with forex trading. However, there are still some challenges that need to be addressed in order for fintech solutions to truly revolutionize the forex brokerage business.

Small businesses are often the most active adopters of new technologies, but they can also be the most risk-averse. This is especially true when it comes to financial technologies, which can have a direct impact on a company’s bottom line. As such, many small businesses are hesitant to adopt new fintech solutions until they have been proven in the market.

Another challenge is that many forex brokerages are still using outdated technologies that are no longer supported by the leading providers. This means that they are missing out on important features and functionality that could give them a competitive edge. In order to stay ahead of the curve, brokerages need to make sure they are constantly evaluating and adopting the latest fintech solutions.

Finally, another challenge that needs to be addressed is the education and training of employees on new fintech solutions. Many small businesses do not have the resources or expertise to properly train their staff on new technologies. As such, it is important for forex brokerages to partner with reputable fintech providers who can offer comprehensive training and support services.

Tips To Smooth the Process

1. Streamline your client on-boarding process: A good fintech solution will help you streamline your client on-boarding process, making it simpler and faster for your clients to open an account and start trading with you.

2. Offer a superior trading experience: A good fintech solution will also provide you with the tools you need to offer a superior trading experience to your clients. This includes things like advanced order types, charting capabilities, and analytical tools.

3. Stay compliant: A good fintech solution will also help you stay compliant with all the relevant regulations. This includes things like Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements.

4. Make use of big data: A good fintech solution will help you make better use of big data. This includes things like using data to improve your pricing models, better understand your clients’ needs, and develop more targeted marketing campaigns.

5. Improve your customer service: A good fintech solution can also help you improve your customer service. This could include things like providing live chat support or offering educational resources to help your clients trade more effectively.

Case Studies of Successful Fintech Implementation in the Forex Market

The forex market is one of the most dynamic and constantly evolving markets in the world. In order to stay ahead of the curve, brokers need to be proactive and look for ways to improve their business with fintech solutions. There are a number of case studies of successful fintech implementation in the forex market that can be used as a blueprint for your own business.

iFOREX VIEW  is an excellent starting point when you decide to open your own forex broker. The ease of maintenance and assistance, as well as the cost-effectiveness, are just a few of the many advantages available.

Our legal department will assist you in registering your new company. Our trading server administrators are in charge of the trading platform’s setup, while our engineering team is in charge of all other components.

We ensure perfect timing for all steps during technology setup because we control the entire software package, without having to wait for information from other companies, access, or other details. This means we can move forward without interruption.

The best solution for your company:
In a brokerage company’s financial plan, the average distribution of income and costs is used.

Server hosting
Physical proximity to all major exchange trade servers, liquidity providers, banks, and other financial institutions.

MetaTrader server licenses 
B2Broker handles all server licensing issues, so you don’t have to worry about the legalities.

Pricing transparency
Prices are obtained directly from liquidity aggregators, with no intervention from market makers.

STP Group 5790
For A-book trades, STP execution is fast and reliable, with ultra-low latency.


In conclusion, Fintech Solutions can revolutionize your Forex brokerage business and help you stay one step ahead of the competition. With the right mix of cutting-edge technology, data-driven insights and fintech services like RoboAdvisors, automated trading algorithms and risk management tools, it is now easier than ever to optimize your performance in the forex markets. Investing in a trusted fintech partner will safeguard your long term success and give you an edge over other brokers who are slow to adopt digital transformation strategies.

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