Having the right knowledge is the first step in becoming a successful Forex trader. However, there are several scams out there that can take your money and leave you without a single cent. These scams involve Pump and dump schemes, Signal sellers, Front-running and even Ponzi schemes.


Several high-profile white collar litigation matters have involved front-running trading tactics. This type of trading is sometimes referred to as “sandwiching,” because it allows traders to exploit pending trades in order to maximize their profits.

It’s not uncommon for a broker to trade ahead of a client’s order, but it can be illegal. A front-running broker may use private information to make a profit, or may pass on trade information to another client.

Front running is similar to insider trading, but it can be more difficult to detect. Computer trading makes front-running difficult to detect, as it splits large orders into smaller ones.

In 2009, the Securities and Exchange Commission reached settlements with 14 specialist trading firms, a number of which had front-running problems. Front running was also found to be an issue among mutual funds, foreign portfolio investors and brokerage firms.

Signal sellers

Traders who are new to forex trading are often misled by the claim that trading signals are a foolproof way to make money. This is not true, and you may end up losing money. There are some signal providers that are reliable, but you should do your homework before committing to a service.

Many traders believe that all forex trading is a scam. It’s true that some of it is, but it doesn’t mean all of it is.

Traders can find a legitimate signal selling service by looking at its history, its reputation, and the number of positive reviews it receives. The service should also provide a trial period. Traders should also look for an appropriate performance fee and a money-back guarantee.

Traders should also consider if the signal provider is regulated. A regulated provider is more likely to provide regulated signals.


Traders who have experience in the stock market know that pump and dump scams are common. This investment scheme involves buying an asset and selling it at a higher price. It is an illegal activity that should be avoided.

Pump and dump schemes can be carried out online or over the phone. One of the most common pump and dump scams involves penny stocks. These are small stocks that have a minimum amount of shareholder equity and must meet certain standards.

Pump and dump schemes use false information to get investors interested in buying the stock. This information is typically commissioned by paid promoters. They can use overly excited information that creates a false urgency that encourages people to jump in. The information is then posted on message boards or social media, causing investors to think the stock is about to take off.

Ponzi schemes

Traders are often targeted by forex scammers. Generally, these traders promise unrealistic returns. They claim to have a system that can generate large amounts of money. They also claim to offer investors once in a lifetime opportunities. The problem is that most of these schemes are fraudulent.

One of the most common types of forex scam is the High Yield Investment Program (HYIP). It promises high returns with low initial investments. The problem is that the investments usually involve a high level of risk.

If you are thinking of investing in a HYIP, you should check to see if the investment firm has a license. It is also recommended that you read user reviews for the broker. It is also a good idea to use a regulated broker.

Get your money back

Getting your money back from forex scam traders can be a daunting task. In fact, in recent years, recovering money from online scammers has become more difficult. However, there are some things you can do to help your chances.

The first thing you can do is to find out if your broker is registered with a regulatory body in your country. This will help you identify fraudulent brokers.

You may also be able to get your money back from forex scam traders through the Commodity Futures Trading Commission (CFTC). This is a government agency that promotes consumer protection and healthy competition. You should report your broker if you suspect it is a scam.

Another option is to seek recovery from a professional forex recovery company. Recovery companies have extensive experience in fighting fraud cases and can help you recover your money. These firms work with you to identify the fraud, gather evidence, and then confront your broker. They can also help you find other professionals who can help you with the recovery process.