Forex scams in the UK increased by 81% in the last 3 years – experts reveal how to avoid falling victim

The team at Forex Recommend looked at how foreign exchange trading scams increased in the UK in the last few years, with an increase of 81% in Forex scams between 2019 and 2021 – a total of 10,000 Forex scams were registered in the UK since 2019!

New research carried out by experts at Forex Recommend looked at the number of forex scams reported in the last six years and offered expert advice on how to be able to recognise and avoid forex scams.

Forex Recommend provided expert advice on how to avoid Forex scams:

Do your research
The more research you can do about a broker, the better. First and foremost check whether a broker is registered with a locally recognised authority; this is the FCA in the UK or ASIC in Australia. Read broker reviews online too to find the best brokers and make sure that others haven’t had negative experiences with a broker in the past.

Read the fine print
When opening an account with a broker, be sure to read through all of the fine print. Some brokers can try to catch you out by enticing you in with an offer such as bonus funds, but there could be strings and restrictions on these.

Try opening a mini account first
If you still have some reservations about using a broker, you could open up an account with a small balance and spend a couple of weeks making smaller trades, before attempting to withdraw your balance, to ensure that there are no problems.

Watch out for red flags
There are a couple of signs that should immediately set alarm bells ringing when it comes to forex trading, such as unsolicited offers about investment opportunities, as these are likely to be scams. Likewise, so-called ‘risk-free’ investing or offers that sound too good to be true are probably fraudulent’.