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Blacklisted Forex Brokers

There are two reasons why Fair Forex Brokers was founded in the first place. First was to promote good brokers that can help our readers to trade in a safer manner, and the second was to warn them about scam brokers that are, unfortunately, more and more often lurking after traders to deceive.

Without any delay, we follow regulatory announcements and keep our readers informed about any changes in the status of forex, cfd and binary brokers while giving them a helping hand in case of any problems with scam forex and binary brokers at the same time. In order to help our readers keep track on blacklisted forex and binary brokers so they can avoid scams, we created a list that can be found below.

We will list some of the characteristics of binary and cfd brokers we can’t and would never recommend.

#1. Downplaying the Risks of Trading

Whether it is a binary options, forex, or a crypto broker, bear in mind there is always risk involved whenever trading takes place. However, there are also brokers that use special advertising methods to either downplay the risk or simply ignore the fact that it exists and that trader should be aware of it. For example, some brokers rely heavily on advertising certain sponsorships they have with different sports clubs, while skipping on risk warnings entirely. Even ESMA, European Securities and Markets Authority, noticed that unethical marketing practices are often the biggest issue when it comes to CFD brokers.

#2. Misuse of Leverage

Of course, it is up to the trader to completely understand terms and conditions before accepting a certain aspect of service, but there are also forex and CFDs brokers that don’t put any effort into explaining what leverage really is, and what trading under leverage means. They offer high leverage to traders who don’t quite understand it is not free money for them to use but a feature that can highly affect their returns. Basically, some brokers use leverage and traders’ lack of knowledge to manipulate their liquidity.

#3. Use of Requotes in Forex and CFDs Trading

Requotes are a big issue in forex industry and traders should avoid them at any cost. Requote is a situation when the broker is not allowing you or isn’t able to provide you with the trade upon the price you entered. It usually happens when the market is volatile and moves fast. For example, you want to take advantage of a certain change in the market and place the order. But, the forex or CFD broker is not able to execute it at that price so they send you a requote – and offer you a new price which is usually not as profitable for you. All trades should be executed immediately and without delay, even though it is possible to encounter requotes even with the best forex brokers. Still, they should be an exception, and not a rule.

#4. Markups on Trading Spreads

spreadECN/STP brokers should only make their money on commissions, but sometimes they also add a markup. Markup can be defined as an additional pip that is added to the initial spread offered by the liquidity provider. For example, if the provider offers 0.3 pips spread on a pair, the forex broker will add a pip so they make more money. The spread is lower when there are no markups added. Traders can simply ask their broker whether or not they use markups and make a decision whether or not you want to use their service. Not all forex brokers who add markups are scams, so try to take a look at the bigger picture.

#5. Slippage

Slippage is something that is used by market maker brokers. The slippage happens when you wish to open or close a potentially profitable position, but the price suddenly moves as soon as you try to execute it. For example, if it was 1.34567 in the moment of the execution, it will be 1.34580. However, slippage is normal and expected with ECN brokers, but not with market maker brokers.

It is a well-known fact that forex and CFDs trading is becoming more and more popular each year, and because of that significant number of frauds are attracted to it. Cases with scam brokers happen more often than ever, and ruin the reputation of good brokers and the entire industry. What is most important is that scam forex and binary brokers are becoming more and more creative when it comes to frauds, and it is harder and harder to recognize them at a first glance.

Lack of knowledge, high expectations, naiveté, great promises and well-designed websites can all be reasons why someone got scammed, but sometimes, not even the most educated and experienced traders can’t escape it. Luckily, there are some steps that can be done in order to protect yourself from being exposed to fraud like learning about various types of fraud and signing up with recommended brokers.

We at FairForexBrokers.com are doing our best to warn readers about scam brokers that can cost traders their nerves, time, and money.

All recommendations provided by the company are of non-binding nature. Forex, crypto, CFD and binary  trading, entail a substantial risk of loss, and the company cannot be held responsible for any interaction with scam brokers.

Binary Options Brokers Scams

As already stated, scammers are developing new methods every day. Sometimes they are so well packed it is almost impossible to distinguish them from good brokers who offer superb service as everything is there: nice website, tools, assets, graphs, maybe even some user experiences regarding how amazing the broker is.

Customer service is friendly and seems to be well informed and helpful, but soon problems occur and trader doesn’t know how to behave and what to do as there is always a certain amount of money still with the broker. That is why research is very important when it comes to choosing the binary broker. Blacklisted CFD and binary brokers list can be a valuable source of information on brokers.

Blacklisted forex and binary brokers often use various tactics in order to prevent their traders from withdrawing the money and leaving. One of the most popular scams is ignoring the withdrawal requests. The customer service simply doesn’t reply to messages sent by the trader.

Sometimes blacklisted forex brokers add unauthorised bonuses that are disabling withdrawal as certain (usually extremely high), turnover must be reached before withdrawing. Adding bonuses without prior approval is illegal, and traders should contact legal services immediately. Similar to this, there is a type of fraud that includes managing account without ever requesting it. If you ever notice someone is trading in your name without your approval, try to withdraw the money as soon as possible.

Recently there has been a new scam sweeping the market: cold calls. Basically, a bad forex broker buys stolen data and contacts traders who never even showed interest in trading with them, trying to convince them to register on their platform. We take this unethical practice seriously and we blacklisted one of the brokers who was doing so.

Forex Scam Broker Protection

The easiest way to protect yourself from fraud brokers is by choosing a broker from our Top Brokers list. Those brokers are reviewed under serious criteria and have our seal of approval. Many of them won various awards for their good business practice and there is a good.

Why are these Brokers not Promoted by Fair Forex Brokers?

First and foremost, it is important to accentuate the fact how not all forex and CFD brokers (or binary brokers for that matter) on this list should be considered a scam. Some of them simply don’t comply with our criteria of what makes a good forex or binary broker that we would recommend but that doesn’t mean they are a scam broker.

Karsten Uwe Lenhoff

German media published news on a raid executed by an international team of German and Austrian officers. They raided 35 locations in five in order to find more evidence and arrest suspects regarding an online trading scam involving Israel-based binary trading company. Raids took place in call centers and apartments in the Czech Republic, Kosovo, Germany, and Austria. According to the news, they arrested 10 people who were possibly related to five different fraudulent websites:

  • XMarkets
  • ZoomTrader
  • TradoVest
  • Option888
  • TradeInvest90

These websites, or binary options brokers, operated on Tradologic platforms that were founded by an Israeli company but operated from Bulgaria. This is not the first time such international raids take place, as something similar happened in February 2019, when Austrian prosecutors raided offices of OptionStars, Goldenmarkets, OptionStarsGlobal, XTraderFX, SafeMarkets, and Cryptopoint. These brokers also operated on Tradologic platforms.

The only publicly known suspect is German Karsten Uwe Lenhoff, who has a long experience in betting and online gambling industry. Other suspects are not publicly known. Considering how over 200.000 Germans traded with these brokers, it easy to understand why such action took place. In the city of Saarbrücken alone, there are 233 alleged victims who lost around 40,000 euros on average. It is also believed how there are 400 websites similar to these, all operated by the same group of people.

According to a German television program, victims were recruited on the phone or via social networks. They were promised great payouts and fast profits. After they would make their first deposit, they were matched to a “specialist” who would advise them to deposit more and more as the next big trade that will bring them a lot of profit is just around the corner. Victims, allegedly, tried to withdraw their money but were unable to do so. The broker explained how there is a software glitch, or that they should wait for their dedicated advisor to come back to work after a vacation. Investigators believe how to real trading or investing took place at all. It seems that traders were simply clicking a virtual interface that just displayed certain data. The money was directly deposited to scammer’s bank accounts. These bank accounts were not in some shady banks as someone would suspect, but in reputable banks in Western Europe, like Sparkasse Koblenz and Fidor in Germany; Belgium’s ING; and Barclays Bank and HSBC in the United Kingdom.

Sparkasse Koblenz and Barclays issued statements in which they say how they closed the accounts belonging to frauds, while others respected the banking secrecy, but said they oblige the law in every way. According to some inside sources by German journalists, bank accounts were opened by men from Lithuania and Romania who indicated software distribution and consulting services as their business. It can be predicted how this will be an ongoing case, as it may happen that the investigation continues in Lithuania and Romania.

Prophet Moral Monareng

The Financial Sector Conduct Authority (FSCA), South Africa’s financial regulator, has issued a public warning against Monet Moves Forex Trading and Prophet Moral Monareng, in which it exposes both supposed online brokers as scams.

Money Moves Forex Trading and Prophet Moral Monareng have been promoting their services through social media, claiming to be legitimate forex trading brokers under the financial services provider (FSP) number 48809. In addition, they are claiming to be associated with Lebone Risk Solutions.

The FSCA, on the other hand, has exposed both companies as trading scams that are falsely claiming to be legitimate online trading brokers. Specifically, Money Moves Forex Trading and Prophet Moral Monareng have no association with Lebone Risk Solutions and neither of the companies have been authorized to provide any financial services or advice based on the terms of the Financial Advisory and Intermediary Services (Fais) act.

In addition to this official warning, the FSCA also shared information on the prosecution of two con artists – David Wilmot (Nava Shore Holdings) and Jabulani Ngcobo – who were posing as legitimate forex traders in a separate scam.

As the online trading world gains popularity, unfortunately forex trading scams have become increasingly common. Financial regulators like the FSCA, the Financial Conduct Authority (FCA), the Financial Services and Markets Authority (FSMA) or the Cyprus Securities and Exchange Commission (CySEC) continue to release public warnings like this one to expose such trading scams and warn potential victims to stay away.

DDFutures

DDFutures was a forex and cryptocurrency investment website that caimed to “generate high returns” through their “reliable” investment plans. Specifically, the website promised users up to a 1555% return of their profits after only 25 days.

DDFutures Scam

Impossible, right? Well, that’s exactly what our team was set to uncover. Who is this company and how do they even work? Is this just another outright scam?

The problem is there is no real explanation on their website about how they work or even what they actually are. The only information available is that they are a private company based in the United Kingdom that develops products that generate high returns. What products they develop exactly and what DDFutures actually does will remain a mystery.

This was an immediate red flag and an indication that this company could be a scam.

DDFutures: The 3 Red Flags

scam illustration

Check out the three red flags we found when investigating DDFutures below.

Red Flag #1: Get-Rich-Quick Promises

An immediate indication that a company could be a scam is when they promise massive sums of money, fast. Right off the bat, DDFutures promises investors up to 1555% of returns after only 25 days. They even have a profit calculator on their website where you can enter the amount you have invested and click to calculate how much money you would get in return.

DDFutures scam

In order to intrigue users even further, on the top of their homepage, they have calculations of previous withdrawals with impossibly large sums like $385,128.40. This may make a user think “I can make this money too” and decide to invest.

Warning: Any company that acts like a type of “money-generating machine” that promises massive returns in a short time period with no effort whatsoever, is a scam. It is impossible to guarantee profits when it comes to investments.

All DDFutures claims throughout their entire website is that by using their system, investors will become rich. The website lacks any other true information, but more on that below.

Red Flag #2: Vague Website and No Company Info

When looking through the DDFutures website, it becomes very clear that this site completely lacks and real information. In fact, DDFutures appears to have no company structure and no clear business model. They claim to be an “investment website” based in the United Kingdom, which is intentionally vague. They do not explain anywhere what DDFutures actually does with the money or how it all works, nor do they even mention who owns DDFutures Trading Limited.

All this information is vital for an investment company, and especially one that claims to make you so much money without even explaining how.

Red Flag #3: Fake License

As if the first two were not enough, our team found that DDFutures is actually claiming to be a licensed software, which is not the case at all. Companies that claim to hold a valid license, when in reality they don’t, simply use it to appear more legitimate to potential investors. Obviously, it’s a lie and a massive red flag for that company.

As you have probably realized by now, our team has concluded that DDFutures is a complete scam and traders should stay away from this company at all costs.

Each red flag found is very serious and investors should use them as warnings to not invest in similar companies. Unfortunately, scams like DDFutures are increasingly common nowadays, so the ability to tell the difference between a scam and a legitimate company is as important as ever.

Cannabis Trader Review

Cannabis Trader is a new auto-trading software seeking to profit from the recent soar in cannabis stocks worldwide.

This phenomenon, which has come to be known as the “green rush” substantially grew following the legalization of marijuana in Canada in October 2018.

cannabis stocksCannabis Trader claims that “things are only going to get more explosive” and that traders should jump in and invest in cannabis stock CFDs now while the market is “hot”. So, is now really the best time to invest in cannabis stocks or is Cannabis Trader just a new scam?

The minimum deposit required to begin trading with Cannabis Trader is $250. You make this deposit directly with a broker you are assigned to upon registration (which is free).

Once you make a deposit with a Cannabis Trader broker, their software starts using this money to automatically place trades on cannabis stock CFDs on your behalf based on live market signals.

Usually, we would advise you to do the research and make the trades yourself. Cannabis Trader claims to also offer useful tips so you can learn all you need to know about the world of online trading, which you should definitely take advantage of if you decide to invest in this new software.

Cannabis Trader stresses the importance of jumping into the cannabis market now, before the global market becomes aware of it. They claim that shares of companies that have been linked to marijuana for medicinal use have increased by 60% in a just this month, which they state is ten times higher than the growth of giants such as Amazon or Apple. In their own words, “this is a real lifetime opportunity no investor should miss”.

So, is this true? Should all investors quickly jump on board?

According to CNN Business, cannabis shares indeed soared in late 2018, which excited many investors as it was seen as a massive opportunity. Cannabis Trader has definitely picked up on a rising interest, but the question is whether the company is worth investing in or whether they are using this recent trend to take advantage of clueless investors.

Calloway Software

The Calloway Software is yet another app that falsely claims to make any trader rich no matter their trading skills or experience. You can allegedly make several thousand dollars within a few hours. This is far from the truth and all serious traders should stay away from such scams that all they want to do is take your deposit.

The Calloway Software supposedly uses famous indicators like the Fibonacci, Bollinger and several other to generate accurate signals for traders using their software. This is not an auto trading bot since traders get to choose their own preferred asset. Traders should be warned that this is a complete scam that the only think it generates is frustration as well as a waste of time and money.

They just throw everything at their disposal so that you make a deposit. That is all they care about, make no mistake. They even claim that you can make an income of a few thousand dollars per week. This is far from the truth and any trader who makes a deposit is in for a surprise.

As already explained, any serious trader should steer clear from scam apps like The Calloway Software.

There is not even the slightest chance that this app will make you any money so steer clear. You can avoid frustration and lost money by not investing in a scam software like The Calloway Software. They are misleading traders into believing that they can make an easy profit without even doing anything just by simply following their signals. There is not a single software in this world that will make you rich overnight. Even the greatest apps will not generate accurate results 100%.

Moreover, they claim that the software will stay free for the next three months and then it will be offered for a fixed price. This is just another false statement so that they can create a sense of urgency so that they can lure even more innocent traders into making a deposit.

Prime Trading

Recently we noticed an interesting new product on the market called Prime Trading Bot. They claim that behind this product is  Primetrading, a licensed investment company that is designed to provide services, investment strategies, and various products to their clients. Also, they state on their website that they have 135 investment teams in 30 countries around the world which share the best knowledge in order to generate profitable results. However, Malta Financial Services Authority (MFSA) warned people of this online crypto trading platform scam. article photo

Although we could not find too much information about what is happening in this scam scheme, Prime Trading Bot has a video on their website where you can see more about the product. They are claiming that their mission is to help all these people who have financial problems. Also, they are claiming that Prime Trading Bot along with the team of experts customize financial plans for the investor and helping them to earn money. With the new technology that they have their plan is to help and earn millions for the people that are investing with Prime Trading Bot.

The problem with software like this is that there is no guarantee. You can make a mistake and invest in something like this which can enhance your financial problems instead of solving them.

The actual founder of this software is also unknown. We tried to contact their support team several times through the chat but there was no answer. However, on their website, they claim that their office address is in Valletta, Malta which is denied by MFSA. Also, all the investment contracts are set up in Bitcoins which means that traders need to invest their money in this cryptocurrency. All these information is telling us that this is really shadow business and traders should think twice about it.

When we tried to get more information and to base our allegations on scam business, we also found a few shady practices while browsing on their website:

Active Management – In this category, they enter their goal and explain high active shares which cannot be checked anywhere.

Security Focus – Individual securities in both stocks and bonds are promised with strong returns over the time which also cannot be checked.

Fundamental – Pricing valuation and profitability management are only one of the features that they want to provide to their clients.

Long-term Perspective – This is how they say; a fundamental value and most important part while trading with Prime Trading Bot. Long-time potential needs to be done because short one is exhausted pretty quick.

As a result of these statements, there may also be reviews that encourage you to take advantage of this offer and invest a lot of money into something unreliable and very shady. Often, these claims of cryptocurrencies come as a source of wealth, and in this case, it is certainly not accurate information.

Prime Trading Bot is a scam and it is blacklisted on our website. This fake trading platform promises easy money and the whole process is marginalized by trading bitcoins which are really unethical. A lot of people are making money by promoting software similar to this by creating fake reports and reviews about scam products like this one. Lastly, we want to warn our readers to choose wisely and check the software they want to trade with. As always, you should be really careful when investing your money.

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