The foreign exchange market is considered one of the world’s largest and most fluid. While today’s market was formed after the Bretton Woods Accord dissolved in 1973, currency trading and exchange have been around since the late 1800s when the gold standard was established, backing national currencies with their value in gold.
Inflation in the early 1900s led many countries to abandon the gold standard. The US remained one of the few still relying on it. The Bretton Woods agreement commenced after World War II, and involved the US using gold to back the US dollar. Other countries in turn used the US dollar as a reference point to value their national currencies.
When trade deficits and budget issues caused President Nixon to discard the Bretton Woods system, the modern Forex trading system took shape. At first, only institutions with large amounts of capital — such as governments and banks — were involved in Forex, until it went into full swing in the 1990s when technology, electronic communication, and communist countries’ transition to capitalism combined to create the modern-day market.
The usual barriers to communication were removed and for the first time, everyday people had access to international markets. Retail Forex trading then allowed traders to invest smaller amounts. An investor also did not need to have traders or brokers complete transactions.
Today, Forex trading has become an established part of international trade and commerce. For a perspective on how the Forex market has grown, in April 2019, the market experienced $6.6 trillion in trades per day, and the entire platform was worth $2.409 trillion. With over 170 currencies traded on the platform, the Forex market is much larger than some of the world’s largest trading indices, including the Nasdaq.
While it is possible to make a fortune in this market, unsuspecting investors can also be duped into trusting unscrupulous brokers. It is impossible to know everything about such a large trading environment. Below is a scam brokers list of individuals and firms who are involved in scams and unauthorized to trade in the market, and how to avoid being duped by them.
Unauthorized and Scam Forex Brokers for August 2022
exchangesolutions.co.uk
This firm is not authorized by or registered with the UK Financial Conduct Authority (FCA). In fact, it is believed to be a clone of, or very similar to, a legitimate firm that is registered with the FCA. This company’s strategy is to make unsolicited contact with people using a genuine firm reference number the FCA gives registered brokers.
Cryptofxtrading
This firm is also believed to be offering products and services without FCA authorization, and targeting people in the UK.
Whitewell Capital Management, Inc.
The FCA believes this company may be offering products or services without its authorization.
CRYPTOPOPINVESTMENT
The FCA believes this company may be providing products or services without its authorization.
Clear Loan
The FCA believes this firm may be providing products or services without its authorization.
First National Bank, Plc
The FCA believes this firm may be providing products or services without its authorization.
Crypto defi Management
The FCA believes this firm may be providing products or services without its authorization.
CRYPTOFINACLETRADE
The FCA believes this firm may be offering products or services without its authorization.
crypto-x-options
The FCA believes this firm may be offering products or services without its authorization.
FxViewInvestment (Update)
A clone firm using the details of a legitimate, authorized firm to convince consumers they are genuine.
Cryptotechuniverse
The FCA believes this company may be offering financial products or services without its authorization.
In the UK, the FCA is the governing entity for financial services. A broker must obtain authorization to provide financial services. The above firms either did not receive the appropriate authorization, or were operating fraudulently. Investors who continue to trade with them, or with any firm unauthorized by the FCA, are unlikely to get their money back because they will not have access to the Financial Services Ombudsman, nor are they protected by the Financial Services Compensation Scheme (FSCS). For a full list of suspect brokers, please visit the FCA website.
How to Avoid Scam Forex Brokers
With numerous brokers available today, Forex trading has become more accessible to both the seasoned investor and the novice. No matter the investor’s experience, there are ways to avoid falling victim to scams or investing with an unauthorized broker. When dealing with a firm or individual claiming to be legitimate, never discuss personal investments on the phone, or disclose credit card information. If a broker tries to sell you on large profits, ask for reputable evidence, and do your research. Finally, check whether the broker is licensed, and as a safeguard, invest using software from trusted providers such as MetaTrader (MT)5, MT4, or cTrader.
Safe Forex Brokers
| Broker | Features | Min Deposit | EURUSD Spread | ||
|---|---|---|---|---|---|
 Your capital is at risk
US Clients: No Regulated : Yes
|
– Regulated by FSCA, IFSC and FSC |
$10 | ECN 0.1, Standard 1.6 | ||
 73% of retail CFD accounts lose money.
US Clients: No Regulated : Yes
|
– Ultra-fast execution from 0.2s |
$100 | from 0.0 pips |
Sign
Up
Your capital is at risk
|
|
 Your capital is at risk
US Clients: No Regulated : Yes
|
– Flexible leverage up to 500:1 |
$200 | From 0.1 | ||
 Your capital is at risk
US Clients: No Regulated : Yes
|
– 40% New Member Bonus
|
$100 | Fixed |
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.
|
|
 81% 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 (FRN 509909), ASIC, FMA, and FSCA Regulated. |
100GBP/AUD/EUR/USD | variable |
Sign
Up
81% 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.
|
|
 Between 74-89 % of retail investor accounts lose money when trading CFDs
US Clients: No Regulated : Yes
|
|
$200 | NDD 0.09 / Standard 0.69 |
Sign
Up
Between 74-89 % of retail investor accounts lose money when trading CFDs
|
|
 76% of CFD traders lose money
US Clients: No Regulated : Yes
|
|
$50 (varying by Country) | from 1 |
Sign
Up
76% 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.
|
|
 Your capital is at risk
US Clients: No Regulated : Yes
|
|
$5 | From 0.0 pips | ||
 Your capital is at risk
US Clients: No Regulated : Yes
|
– CySEC, FCA, FSCA, SCB Regulated |
$100 | |||
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Final Words
Any investment is a gamble that can be mitigated with research into the market. With hundreds of brokers on the Forex market, weeding out scammers and unauthorized brokers can be daunting. However, the above information will help you to know which brokers to steer clear of, and how to avoid being scammed.
In addition, it is always wise to remain aware of the FCA’s findings on brokers operating without authorization. They provide consumers with an extensive list of such individuals and companies, along with detail as to why they were placed on the list, which is updated monthly. Finally, if you’re looking for a new Forex broker, please see our broker reviews page for up-to-date information.