The Forex market is the largest and most liquid financial market in the world, with a daily trading volume of approximately 100 trillion Rand. In the past decade, Forex trading has witnessed a significant surge in popularity in South Africa. This increase in accessibility can be attributed to widespread internet access throughout the nation and a growing presence of international ‘offshore’ brokers in the local market.
However, the increase in Forex trading accessibility has also brought about a rise in scams and dishonest brokers targeting traders with the sole purpose of trying to steal their money.
If you have been the victim of a scam, you should always contact your local regulator to make a complaint. In South Africa, you can contact the FSCA here. If your complaint is regarding a licenced South African broker, you can contact the FAIS Ombudsman here.
We also collect information on scam brokers. Please make us aware of any fraudulent activity you have come across by filling in the form at the bottom of the page. Also make sure to check out our warning list with CFD brokers to avoid.
How to avoid being scammed
To protect yourself and avoid being scammed, make sure to follow these steps:
1. Never give money to someone to trade on your behalf
It is illegal in South Africa for anyone to invest on your behalf without a licence from the Financial Services Conduct Authority (FSCA).
2. Never send money to people you meet on social media
In our 2020 report, we found that over 50% of Forex scams start on Facebook and Instagram.
3. Never trust any broker or person offering guaranteed returns or huge profits
Forex trading is high-risk speculation and profits can never be guaranteed.
4. Always verify that a broker is regulated
Regulated brokers are required to publish their licence numbers on their websites. Once you know a broker’s FSP or licence number, check with the regulator to see if the broker’s licence number is legitimate. The FSCA in South Africa keeps a register of all licenced Financial Services Providers (FSPs). From 2021 all Forex brokers based in South Africa must hold an ODP licence, you can also check the FSCA’s register of all licenced Over-the-Counter Derivative Providers (ODPs).
If your broker is not based in South Africa, other major regulators such as the FCA (UK), ASIC (Australia) and CySEC (Europe) all have searchable registers.
5. Seek out broker reviews from reputable sources
In addition to ensuring that you are dealing with a regulated broker and verifying their credentials, it’s crucial to explore reviews from impartial sources. We have a long-standing history of evaluating numerous Forex brokers for over a decade. Feel free to explore our independent, unbiased forex broker reviews.
6. Learn how to spot a scam broker
In this video, we walk you through a scam Forex broker’s site and show you some common indicators that this is not in fact a legit Forex Broker.
We also provide a podcast episode about the subject matter, divided into two parts. The first part focuses on the procedure of scam brokers and in the second part we share real life stories of people who have been scammed, how it happened and how to avoid it.
File a report
If you believe you have been the victim of a scam, please fill out the form below. Your input is invaluable in our ongoing efforts to protect others from falling victim to fraudulent brokers and maintaining the integrity of our platform. However, it’s important to note that while we are committed to offering support and raising awareness, we are not legal experts and lack the authority to initiate legal actions or provide individual remedies against scam broker companies. Your input will primarily assist in our collective mission to prevent future scams.
Scam Forex Broker - Report Form
Important: Data collection information
- We collect answers from lots of traders and where we see a trend, we will conduct research into the broker in question and publish any results we may find.
- We reserve the right to use your story for informative purposes, but will never attribute the comments to any one individual. Your privacy is respected and we will not publish any personal details.
- We will not tarnish the reputation of brokers unless we can find evidence of wrongdoing.
