Scam Broker Reviews 2022
Online trading may seem like an attractive way to expand your retirement savings or make some extra money, but look before you leap! Online broker scams have reached unprecedented levels and people are losing millions to trading frauds.
The FTC reported in 2021 they received 2.8 million fraud complaints, up 70% from 2020. So far in 2022, the number of scam complaints continues to increase steadily and there is no doubt they will reach new record levels by the end of the year.
So should you avoid trading at all? Even though markets have been devastated by the spring of 2022, investing is still virtually the only way to expand your resources for retirement and to grow your savings considerably. The key isn’t not investing but finding ways to invest safely. This means researching brokers carefully before trading.
How Our Reviews Can Help You
Most of the brokers we review are definitely scams–there are only a few that may be alright. We don’t recommend trading with any brokers reviewed here because it isn’t worth the risk. We give you evidence-based reviews and detailed reasons these scam brokers were flagged as possible frauds.
Don’t assume that if a broker doesn’t appear on our list that it is okay. We update these reviews regularly, so keep checking back. We recommend choosing a regulated broker that has strong independent reviews and has verifiable information.
10 Signs a Broker May Be a Scam
Brokers may have ended up on this list for any of the following reasons, usually a combination of several.
The vast majority of scam brokers are not regulated or have a third-tier license with a regulator that provides no oversight.
These brokers make up names similar to regulated brokers with solid reputations. They deceive consumers and trick them into thinking they are the regulated broker. This type of scam is particularly damaging, because it not only misleads the consumer but can harm the legitimate broker’s reputation.
Many frauds naturally don’t want to reveal detailed information about themselves. They will either not mention any people who run the brokerage or will have fake people with stock photos. You can easily verify contact information and identities online.
Any broker that guarantees a certain level of return on investment is not telling you the truth. This is particularly true if brokers claim to offer impossible-sounding returns, such as 100% in a month. Just to give you an idea of what is reasonable, legitimate brokers usually return between 6 to 10% for investors every year.
Push Risky Assets such as Forex, CFDs and Cryptocurrencies
Not all forex,CFD and cryptocurrency brokers are scams, but be suspicious if the broker only offers high-risk assets. Fake brokers can hide behind excuses that money was lost in a high-risk trade when in fact they may have pocketed the money.
Accept Only Cryptocurrencies to Fund Accounts
If a broker allows you to fund your account only in cryptocurrencies, be careful. They may think they can disappear with funds easier if they are bitcoin transactions.
Details Don’t Check Out
If you find that the names of people don’t match the information on the site or if the brokerage address is instead a fast food restaurant, don’t trust anything else they tell you. No legitimate broker fakes information.
Poor Website or No Website
Bad content writing and shoddy design may not seem like a big deal, but it can indicate a lack of professionalism that can signal a scam. Not having a website at all and finding clients only on social media is also not a good sign.
Regulated brokers are rarely pushy. They are busy returning value for loyal clients and they don’t need to seem desperate.
Won’t Let You Withdraw Funds
If you request a withdrawal of your funds and the broker makes an excuse or claims you will have to pay huge fees that weren’t mentioned before, that’s a sign that the broker is a scam.
Have You Lost Money to a Scam Broker? Talk to Us!
If you’ve lost money to a fraudulent broker, don’t suffer in silence. Speak to our experts right away. We will consult with you, create a strategy and launch a full fraud investigation. Our team is adept at tracking down funds on the blockchain and dealing with law enforcement and financial authorities to help you achieve a successful outcome to your claim.