What To Do if You’ve Been Scammed by a Forex Broker? Steps, Definitions, Legal Advice, and Preventive Measures

If you’ve fallen victim to a forex scam, your initial reaction might be, “What should I do now?” Acknowledging that a forex broker may have scammed you is the first challenging step toward a potential resolution.

This guide will explore various scenarios that may apply to your situation. We’ll also outline potential actions you can take if you suspect you’re dealing with a scam forex broker and provide helpful tips for protecting yourself from future forex scams.

Note: The information in this article is for informational purposes only and does not constitute legal advice.

What Are Forex Scams?

what are forex scams?

Forex scams are deceptive practices that aim to defraud traders by promising unrealistic profits. Scammers target various asset classes, but Forex is a lucrative target because its turnover averaged $7.5 trillion per day in April 2022. 

Forex scams, just like similar financial crimes, involve services that don’t perform as advertised, impersonation of notable traders to coax personal information, and fake websites to imitate big-name brokers. 

How Can You Recognize the Early Signs of Forex Scams?


Recognizing early signs of forex scams involves identifying promises of guaranteed returns and pressure tactics. Guaranteed returns in any asset class are an immediate red flag, and Forex is no different. 

Other early signs of a forex scam include:

  • Scammers use high-pressure sales tactics to make urgent requests for money. Registered brokers don’t pressure you into sending money until you are confident.  
  • Downplaying any risks as every investment class carries its own risks. Registered brokers never promise profits as that is a criminal offence. 
  • Fake, flowery testimonials from “successful” traders. 

What Should You Do If You Suspect a Forex Scam?


If you suspect a forex scam, immediately cease all communications and record all transaction details. Put a halt on all further dealings with the shady entity. Maintaining detailed records, including phone calls, bank statements, messaging app screenshots, and emails, will be crucial in subsequent legal proceedings. 

You also need to identify the type of forex scam committed by the perpetrators. They include:

  • Unregulated/lightly regulated forex traders from shady destinations. 
  • Betting all-in on a particular outcome
  • Impersonations of successful forex trading firms using spoofed emails and fake websites. 
  • Social media scams
  • Paying subscription fees for “trading signals”

How Can You Report a Forex Scam Effectively?

Report a forex scam by contacting local regulatory bodies and providing them with detailed documentation. Swift reporting of the crime can spark an immediate investigation from the authorities. 

You can report a forex here:
Australia: You can file a complaint with the Australian Securities & Investment Commission here (ASIC) 

Hong Kong: You can file a complaint with the Hong Kong Securities Futures Commission (SFC) here.

Singapore: You can file a complaint with the Monetary Authority of Singapore (MAS) here

New Zealand: You can file a complaint with the New Zealand Financial Markets Authority (FMA) here.

India: You can file a complaint with the Securities and Exchange Board of India (SEBI) here

Europe: You can file a complaint with the European Securities and Markets Authority (ESMA) here

Japan: You can file a complaint with the Japanese Financial Services Authority (JFSA) here

Switzerland: You can file a complaint with the Swiss Financial Market Supervisory Authority (FINMA) here

United Kingdom (U.K.): You can file a complaint with the UK Financial Conduct Authority (FCA) here

Canada: You can file a complaint with the Canadian Investment Regulatory Organization(CIRO) here.

United States (U.S.): You can file a complaint with the US Commodity Futures Trading Commission (CFTC) here

What Legal Actions Can You Take After Being Scammed by a Forex Broker?

After being scammed by a forex broker, consult a financial fraud attorney to explore your legal options for compensation. 

You can consult or hire a securities attorney and private investigators to determine how the law can help you. However, it may not be cost-effective to go after the perpetrators alone. This is especially true if the culprits are based in another country. It might cost a fortune to hunt them down. You can find other affectees, team up with them, and share the costs. 

How Can You Recover Emotionally and Financially From a Forex Scam?

Recovering from a forex scam involves seeking counseling for emotional distress and reassessing financial plans. 

You should:

  • See a counselor or psychologist
  • Study courses and view informational videos]
  • Follow Quora thread
  • Subreddit r/Scams
  • Read a book on emotional recovery after scams

Why Should You Engage With Community Support Groups After a Forex Scam?

Engaging with community support groups provides emotional support and valuable advice from others who have faced similar situations. You are not the first person to be scammed; chances are that other people lost more money to them. 

Here are community support groups to help you recover and receive advice after a Forex scam:

What Are Essential Definitions Related to Forex Trading Scams?

Below are some essential definitions related to forex trading scams.

What is the definition of Forex Trading?

Forex trading is an Over-the-counter (OTC) market for trading national currencies. It includes buying/selling and exchanging currencies at spot or pre-determined price levels. 

What is the definition of a Forex Scam?

Forex scams are any shady scheme used to defraud forex traders with promises of high returns. They need to be reported promptly to the concerned authorities. 

What is the definition of a Broker Scam?

A broker scam is when a trader engages in illegal behavior to scam its clients or other brokers. Broker scams include unauthorized trading. 

What is the definition of Signal Selling?

Signal selling is giving clients a sell/buy signal in exchange for money. Signal sellers often use banned market manipulation techniques for this purpose. 

What is the definition of a Regulatory Body?

A regulatory body is an autonomous government organization that has authority over a particular human financial, administrative, or social activity. 

What Are Common Questions People Ask About Forex Scams?

Here are some common questions asked by people targeted by a forex scam.

What to do if scammed by a broker?

Immediately halt all transactions with the broker and record all evidence of the crime. Then, file a complaint with the local regulating body. 

Can I get my money back after being scammed?

Yes, but it depends on your location, the country’s regulating authorities, and the proof you present. 

How to recover money from a forex broker?

Gather all evidence, document it, and file a complaint with the local Forex regulating body. You may need to hire an attorney to argue your case. 

How do I report a scammer broker?

In the US, you can report the crime on the CFTC portal. For others, read the section on how to report a scam successfully. 

What steps to take after being scammed?

Immediately halt all trading activity and make a note of the financial wrongdoing. Include as much documentary evidence as possible. 

What information does a scammer need to access my bank account?

To access your bank account, the scammer will need your Bank account details, passwords, passcodes, or credit/debit card information. 

How can I report a scammer to the FBI?

You can locate the nearest international attache of the FBI and report the crime to its office. 

Where Can You Find More Resources for Forex Trading and Scam Prevention?

Additional forex trading and scam prevention resources can be found through regulatory sites, financial education platforms, and community forums. Suitable resources include:

What Are the Key Takeaways From This Guide on Forex Scams?

The key takeaways emphasize vigilance, prompt action, and legal recourse in dealing with forex scams. The best way to avoid any monetary losses in the Forex market is to go with a reputed Forex broker with a presence in multiple international financial destinations. 

If you are scammed in a Forex trade, the best course is to halt all further trades with the scammer, gather evidence, and lodge a complaint with the local Forex regulator. You should also hire a professional attorney for litigation purposes. 


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