How to Request a Chargeback from a Forex Broker

Forex Fraud Analyst Team

How to Request a Chargeback from a Forex Broker

If you’ve had a bad experience with a forex broker and feel you have been misled or scammed, you’re probably wondering if you can get your money back. It may be possible, but it will depend on a few factors. If you used a credit or debit card to make your deposit, and the broker is not responding to your complaints, your best bet might be to request a chargeback through your bank or card provider. Today we will look at how the chargeback process works, when you may be eligible for a refund, and how to request a chargeback from your bank in the case of a forex trading scam.

What Is a Chargeback?

 A chargeback allows a customer who has made a payment to obtain a refund. Chargebacks generally apply when you have used a debit or credit card to pay for goods or services and the goods or services are not acceptable or fit for purpose. That might be due to the poor quality of what you bought, or the fact that the goods or service offered was not provided. Chargebacks can be issued when you are the victim of a scam and also sometimes if your card was used without your knowledge.

A forex chargeback might be possible if you’ve been the victim of a forex scam or some kind of fraudulent activity that involved paying or depositing money using a debit or credit card. Not every chargeback requested is awarded. If it is, it is paid back by the bank that issued the card. The payment will be in the form of a credit onto your card or into your account.

When Can I Request a Chargeback?

Users can request a chargeback under specific circumstances. With trading issues, there must be a good reason you want your money back. As a forex trader, if you need to request a chargeback, forex brokers are unlikely to want to comply with your request, so you will have to prove beyond doubt that you are entitled to the payment.

That means you will have to prove you have been the victim of fraud or that you didn’t receive the service you paid your broker to provide. It’s not enough if you simply changed your mind about forex trading and need the money back, and you cannot request a chargeback because you lost money trading unless it was due to provable fraudulent activity.

Any chargeback request, whether related to forex trading or not, has to adhere to specific requirements. If they are not met, the bank or card provider will not even consider or process the chargeback request.

Firstly, the purchase or payment must have been made using a credit or debit card. That is one advantage of funding a forex account in this way. Many traders use other forms of payment or e-wallets, which may or may not have some form of built-in protection that allows you to request your money back. The term chargeback applies only to credit and debit card payments.

You must be prepared to divulge details of the transaction to your bank or card provider. Once you have contacted them and asked them to open a chargeback case, they will ask you about the transaction, including what you have done so far in terms of asking the company you paid to refund you or resolve the situation. This is so the bank understands the case, can investigate the transaction, and assess what happened.

A chargeback request must be submitted about a specific transaction or set of transactions. The bank will not be investigating the company or trying to assess if it is operating illegally or fraudulently. They will investigate specific transactions to see if they meet the requirements for a chargeback.

You must file complaints with other authorities if you want a company to be investigated for potentially illegal activities. The police will need to be informed and the regulating body for financial services in the country where the broker or organisation is based.

How to Request a Chargeback

 Requesting a chargeback is relatively simple, but you will want to be sure that you have a reasonable chance of success. As already mentioned, you can only get a chargeback if the payment you made was not a legitimate transaction for some reason. If a broker has taken your money and disappeared, for example, or if you have paid money for a service that has not been provided.

There are various red flags to watch out for when assessing if an investment opportunity is a scam. Watch out for them before investing. If you notice the warning signs after making an investment, be aware that you might have been scammed. You may then request a chargeback and/or report the investment company to the relevant authorities.

Request a Chargeback from Forex Broker

One big red flag with investments is the promise of unrealistic results. If a return is ‘guaranteed’, ‘risk-free’ or seems too good to be true, then be wary. You should also be mindful of aggressive sellers who push you to invest more than you can afford or put time pressure on you to invest without proper consideration or a chance to research. Be aware that results and testimonials can be fake, and always check that the provider you choose is licensed and regulated.

If you suspect you have been the victim of a scam, and you made a payment or payments with a debit or credit card, then you may be able to pursue a chargeback option. How to request a chargeback does not vary much between providers. You simply need to contact whoever issues your card. This will be your bank in the case of debit cards and many credit cards. Sometimes, your credit card provider may be independent of your bank, and you must approach the card issuer directly.

You will need to submit your complaint to the bank or card issuer in writing and let them know which transaction you are querying and why. Be prepared for them to ask you a few more questions and perhaps ask for evidence, such as a copy of an email requesting that the company refund the money or other proof that complaints made directly to the company that took your money have been unsuccessful. The more evidence you have, the better.

Your bank or card issuer will then usually start a chargeback procedure, and from then on, it is their responsibility to pursue the company and get a refund, which they then credit to you. The company doesn’t need to agree to the chargeback. If you have provided evidence of a situation where you should be refunded, and the company cannot or does not provide counter-evidence that your claim is false, you should still receive the chargeback from your bank.

You are considered a victim in this situation, and your bank should have protections in place that will allow them to refund you, provided you genuinely have been a victim of fraud or unlawful practices. Unsurprisingly, banks are not always eager to spend time, effort and money on pursuing chargeback requests, so you may need to be persistent if they seem reluctant to process your case. The more evidence you provide, the better your chance the bank will consider the case worthwhile, and the chargeback will be successful.


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Safe Forex Brokers

Always use a safe, licensed and regulated broker to avoid or at least minimise the need for forex chargeback requests. Here is our list of safe forex brokers who offer a legitimate service to their clients.

Broker Features Min Deposit EURUSD Spread  
Number One Broker BlackBull Markets LogoYour capital is at risk US Clients: No Regulated : Yes

– Flexible leverage up to 500:1
– Multi award-winning New Zealand broker
– Institutional-grade spreads from 0.1 pips

$200From 0.1
73 % of retail CFD accounts lose money US Clients: No Regulated : Yes

– Ultra – fast execution from 0.1s
– Low spreads from 0.0 pups
– All trading strategies allowed
– No restrictions on profitability
– Top trading conditions

$100from 0.0 pips
Sign Up 73 % of retail ...
AvaTrade LogoYour capital is at risk US Clients: No Regulated : Yes

40% New Member Bonus
– MIFID, ASIC, FSA & FSCA regulated
– Free Online Trading Coach

 

$100Fixed
Sign Up Europe* CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Plus500 Logo79 % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. US Clients: No Regulated : Yes

– FCA, ASIC, CySEC Regulated.
– Multi Asset Trading Platform.
– No Time Frame For Demo Accounts.
– the provider offers CFD trading only

100GBP/AUD/EUR/USDvariable
Sign Up 79 % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Moneta Markets LogoYour capital is at risk US Clients: No Regulated : Yes $50from 0
vantageYour capital is at risk US Clients: No Regulated : Yes
  • ASIC Regulated
  • Well Established
  • No Fees
  • 24 hour support
$200From 0.1 pips
LegacyFX LogoYour capital is at risk US Clients: No Regulated : Yes
  • CySEC regulated.
  • Good for beginners with excellent trading academy.
  • Beginner Friendly
$500From 0.6 pips
Between 74-89 % of retail investor accounts lose money when trading CFDs US Clients: No Regulated : Yes
  • FCA, CySEC, DFSA, BaFIN, SCB, CMA & ASIC Authorized and Regulated
  • 24 Hour Support
  • Negative Balance Protection
$200NDD 0.09 / Standard 0.69
Sign Up Between 74-89 % of retail investor accounts lose money when trading CFDs
Your capital is at risk US Clients: No Regulated : Yes
  • Crypto deposits possible
  • Bonus offers
  • Leverage up to 1:500
  • MT4 and Allpips platforms
$25From 0.4 pips
Forex Broker eToro Logo67% of CFD traders lose US Clients: Yes (eToro USA) Regulated : Yes
  • Social Trading Platform
  • FCA & CySEC Regulated
  • Minimum Deposit $200
  • Demo Account
  • Copy Trading
  • 2000+ Instruments
$200from 1
Sign Up 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Skilling forex broker logoYour capital is at risk US Clients: Regulated : Yes $100
Sign Up 69% of retail investor accounts lose money when trading CFDs with this provider.
Swissquote logoYour capital is at risk US Clients: No Regulated : Yes
Pros: Cons:
Market-leading regulatory framework Minimum balance requirements
Trader focused site design Not available in some countries
Track record of over 20 years
Reliable and cost-effective trading platform
Extensive range of markets on offer

 

 

1000 EURBank: 1.1 EU traders: 1
VT markets logoYour capital is at risk US Clients: No Regulated : Yes
  • Access the market depth window to view the top bids and offers.
  • Place trading alerts.
  • Execute trades with the assistance of robots (Expert Advisors).
No minimum deposit From 0.0 pips
Trade360 LogoYour capital is at risk US Clients: No Regulated : Yes
  • All trading strategies allowed
  • No restrictions on profitability
  • Top trading conditions
$450From 0.0 pips
Oanda Logo77% of retail CFD accounts lose money US Clients: Yes Regulated : Yes
  • No Minimum Deposit
  • Over 100 instruments
  • Web, desktop, mobile platform and MT4
  • Best Retail FX Platform 2018
  • FCA & ASIC Authorized and Regulated
  • Founded in 1996 with HQ in Toronto, CA
Nonefrom 1.2
LiteForex LogoYour capital is at risk US Clients: No Regulated : Yes

– Regulated broker
– Only $50 min. deposit
– Wide range of Trading Instruments
– MT4, MT5 and Web Trader Platforms
– 24/5 technical support
– Use ECN technologies

$50 From 1 pips
HYCM LogoYour capital is at risk US Clients: No Regulated : Yes

– Regulatory compliance is under the auspices of the FCA in the UK, the SFC in Hong Kong, the DFSA in Dubai, and by way of the MiFID for the European Union.
Up to $5,000 Welcome Bonus (T&C apply) Applicable only for HYCM Limited

$201.8 pips
Exness logoYour capital is at risk US Clients: No Regulated : Yes
  • Instant automated withdrawals 24/7
  • Commission-free Standard accounts
  • Some of the lowest spreads on the markets and stable execution
  • Unlimited leverage
  • Free VPS Hosting
Starting from $10 on Standard and $200 on Professional accountsAs low as 0 on Raw Spread and Zero accounts
Forex Broker City Index Logo75% of clients lose money. Capital at risk US Clients: No Regulated : Yes

– FCA, NFA, CFTC, IIRO, FSA, CIMA, MAS, SFC Regulated.
– Award winning platform.
– Beginner Friendly.
– Well established, safe and trusted.

£100Varied
iq option71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money US Clients: No Regulated : Yes

– 50 Euros minimum deposit
– State of the art platform
– 24/7 support in more than 17 languages
– Free demo account

20 EurosVaries
Sign Up 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
CCI Traders logoYour capital is at risk US Clients: No Regulated : Yes
SquaredFinance LogoYour capital is at risk US Clients: No Regulated : Yes $100From 0.0 pips
IC Markets LogoYour capital is at risk US Clients: No Regulated : Yes
  • All trading strategies allowed
  • No restrictions on profitability
  • Top trading conditions
$200From 0.0 Pips
BDSwiss trader logoYour capital is at risk US Clients: No Regulated : Yes
  • Low-cost trading
  • Excellent research and analysis
  • Great trading experience
10€ / $ / £ (depends on account type and region)1.2 pips
Sign Up Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose.

    Ultimately, there is never any guarantee that you will get your money back from a fraudulent broker, so it is vital to do your research to avoid forex fraud scams in the first place. If, however, you realise that you have been the victim of a scam, there are steps you can take to try and rectify the situation.

    Complaining to the governing bodies that regulate the broker and legal authorities in the broker’s jurisdiction is vital to ensure that investigations are made and that others are not conned how you have been. However, if you paid by debit card or with a credit card, starting a chargeback procedure may be the best and quickest way to get your funds returned.

    Keep all evidence of your transactions and interactions with the company or individual who took your money and submit these along with a chargeback request. Hopefully, this will ultimately result in you being able to recover your money.