Trading practiceUpdated 3 min readBy the FXNOD team
How to identify trading scams and fake trading services
A trading scam almost always shows the same signs: guaranteed or unusually high returns, pressure to act quickly, a request to send money to a person or to a platform you were told about by a stranger, and difficulty withdrawing. Real trading carries risk and no honest service promises a profit. Verify the firm with your regulator before depositing.
The common scams
| Scam | How it works |
|---|---|
| Account management | Someone offers to trade your account or your money for a share of the profit, then disappears with the deposit |
| Fake broker or platform | A site shows growing profits that are only numbers on a screen. Withdrawals are refused or need a further fee |
| Signal groups | A paid group with edited screenshots of wins, often funded by commissions on your losing trades |
| Guaranteed bots | A bot sold with a promised daily return, usually a Martingale that works until it empties the account |
| Recovery scams | After a loss, someone offers to recover your money for an upfront fee |
| Impersonation | A copy of a real broker's site or support account that collects your login |
| Romance and friendship investing | A new online contact gradually introduces a trading platform and coaches you to deposit |
Red flags
- Any guaranteed return, or a fixed percentage per day or week.
- Urgency: a limited offer, a bonus that expires today, a slot that is about to close.
- You are asked to pay an individual, in crypto, or through a gift card.
- You are asked for your broker password, a one-time code, or remote access to your device.
- Withdrawals need a tax, a fee or a further deposit first.
- Contact began with an unsolicited message on social media or a messaging app.
- Profits shown only as screenshots.
- The company cannot be found on any regulator's register, or its details do not match.
How to check a service
Find the legal entity
A real firm names its company and its licence on its site. Note both.
Check the regulator's own register
Go to the regulator's website yourself, not through a link the firm gave you, and confirm the name, the licence number and the web address.
Check the web address letter by letter
Clones use a domain one character away from the real one.
Search the name with the word scam or warning
Regulators publish warning lists.
Test a withdrawal early
Deposit a small amount and withdraw it before adding more.
With bots and trading tools
A legitimate trading tool connects through your broker's own login page, never asks for your broker password, and leaves your money in your own broker account. It lets you read the bot's rules and try it on a demo account without paying. If a tool asks you to deposit with the seller, or will not run on demo, treat that as the answer.
If you have been scammed
- Stop sending money, including fees to release a withdrawal.
- Change your passwords and revoke any access you granted to your broker account.
- Tell your bank or card provider immediately; some payments can be disputed.
- Report it to your country's financial regulator and to the police.
- Ignore anyone who contacts you offering to recover the money for a fee.
Questions people ask
- How do I know if a trading platform is legit?
- It names a legal company and a licence that you can find on the regulator's own register, with a matching web address, and it lets you withdraw without extra fees.
- Are trading signal groups scams?
- Not all, but many are. Edited screenshots, guaranteed results and pressure to join a particular broker through their link are the usual signs.
- Is a trading bot with guaranteed profit real?
- No. No bot can guarantee a profit. The promise itself is the evidence of a scam.
- Can I get my money back after a trading scam?
- Sometimes, through your bank or card provider if you act quickly. Be wary of recovery services that ask for a fee in advance: that is usually a second scam.
Test your rules before you fund them
Turn a rule into a bot in Bot Forge by answering questions, run it on your Deriv demo account, and read the result trade by trade.
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