Dear Traders,
since we have more and more students coming to us after they were scammed by brokers, I would like to open this topic and give you some tips how you can recognize the SCAM Brokers:
1. After you leave your contacts online, they will call you immediately.
There are companies that are called Affiliates. They do the marketing and after you register with one of those, your phone number is given to many companies. That’s why most of the times even you register for one, you will receive many phone calls from many different companies. The first company that succeed to take your money pays the Affiliate company.
2. The first call you receive is from the “Account manager/specialist”.
Normally they do not use their real names and they are not located in the country they say(normally London or Cyprus).
Usually they promise you some kind of income and benefits:
-Automated robot with success rate up to 80 – 90%.
-Professional trader that will do the education for you, will monitor your trading.
-The company will receive 1-5% commission from every profitable trade you make, so they will make their best!
3. The MINIMUM DEPOSIT THEY ASK YOU IS 250USD!!!
Some will give you up to 100% bonus – this way after that you can not redraw your money – in their terms and conditions they have the condition that you can redraw your money back when you complete 30 times trading volume of your initial capital. As you can guess your money will be lost much earlier.
4. They will ask for your DEBIT/CREDIT CARD DETAILS.
There are many sales ways that will convince you to do that – they are licensed by Visa/Master Card, they have SSL, they will transfer you to their financial department(normally the guy that sits next to him), the call is being recorded and they can not loose their job if they do something wrong and so on…
5. After they take you the money, you will receive a call from their compliance department.
They will ask you to send proof of ID, proof of residence and picture of your CREDIT/DEPIT CARD with some hidden details, to make you forget you just gave it to them and they have your credit/debit card details already.
This way the Scam brokers protect from a Charge back. By sending your documents you approve the transaction and it will be nearly impossible to charge back your money with Visa and MasterCard.
6. After that you receive the call from “the professional trader” or “the senior account manager”.
In the first call he will ask you as many questions as possible – your job, your family, your income. The purpose is to understand how much money you have. If they see that you do not have much more money, it is very possible that you will not receive another call and your money will be gone with their “automated software”.
If you have more money – you will receive more calls. He will start making trading sessions for you/share his screen via skype normally, because skype is hard to be recorded and followed by the regulatory companies. They will show you unbelievable results – normally they control the price on their platforms and nearly all the trades they show you will be profitable. And the profits into your account obviously are not real. This way the people “see” in this “professional trader” the man that will change their life and make them rich. Obviously they will ask you for more and more money…
You should know one thing – these people have no idea about trading and they are just very very good sales men.
The outcome is different – the moment you want to redraw some money – they will not allow you and they will stop answering your phone and you will see how the money from your account are disappearing.
Some of our students shared that they redrew some of the money but not all they put in and normally it took them months. It is sad that even after the movie The Wolf of Wall-Street, the people continue to believe it and loose their money this way.
I will be happy if more people share their experience in the forum here so we can prevent some future scams..
For us is challenge to do it, because when our students come to us after they had experience with Scam Brokers, for us its much harder to the professional education to them, because they are very skeptical to the Financial market an that is understandable…
Anyway even you had that bad experience you should know one thing:
Trust nobody in trading, but yourself. That’s why you need to learn to trade by yourself and to create automated strategies ( Expert Advisers) by yourself!
I hope I was useful!
Cheers

Dear Sir Svet, thank you for sharing that information with all. Unfortunatelly that was my first expirience with trading…i lost 250USD with a Scam Broker and with there “quontom code”software…but i can say that i am not sorry for that anymore. Because this way i started looking for professional EAs…software strategy builders and this way i found the academy, bought the course Portfolio of Forex strategies and EA Studio. Now i am with a profit bigger then 250USD. Of course i prefer if i did not have that bad expirience with a Scam Broker but what to do, that is life, we learn from the mistakes.
Thank you also for recomending me the good broker! I had already 2 redrowals and i feel alright now.

Good you lost just 250 there..i was scamed twice and i can not belive how i actually gave met card details 2 times…
These people are horibale and they are just steeling our money. Now i restarted it all with a small trading account and with the help of the academy i think i will recover my losses. I can say that EA Forex Academy are really professionals and their courses will help anymobdy learn trading.

Thank you for the good words George, with the last results you sent. Me in the detailed statement, I think you are already much above your loses 🙂 good job!

About the scam brokers, yes its the horrible part in the financial market. I do not know how the people continue to give cards over the phone and believe that someone else will make money and profits for them.

Thank you Svet, for the topic, I hope more people will reach to it, before they are burned.

For me, even the brokers with high spread are scammers. I had a student who sent me the statement with the GBPJPY Strategy from the Top 5 Forex Strategies with losses and in the same time with us it was profitable. After we compared the statements we saw that his spread was 12-14 pips…and even he was pausing on news and all was done properly, the balance was negative.

I really suggest everybody to make a good resurch before taking any actions to open live accounts.

I am very upset because i will have to change my phone number…the Scam brokers just do not stop calling even i told them 100 times that i am already trading with a broker…if you have any advices what to tell them on the phone, so they will not call me any more would be just great.

Hey Peter,

Yes you better change the number…the problem is that your number is not with only one but many.
This happens because you have registered on some Ad, but this Ad was from Affiliate(this is how they call themselves). After that they give your number to many brokers, so the first that succeeds to deposit with you, will pay the to Affiliate. Overall the Affiliates are the once making the sweet money.
Keep your head up always when dealing with anyone over the phone.

O, Svet I give a fortune to go back in time and see your topic. This is exactly what have happened to me. Such scam brokers exploded 3 real accounts of mine. Lost more than 10k. Anyway now I am smarter and have already profits with Petko’s courses. I will try to be smarter and trade with good money management(trying to forget the loses I had before, just taking them as a lesson now to avoid the scam brokers)

Oh, this is a big problem with Scam brokers… Thank you to everyone about opinion about Scam brokers… Some time ago I lost a certain amount of money and it was
terrible. This was big lesson for me..

Ladies, sorry to hear that. Take it easy and try to ignore the bad experience with the Scam brokers. Gain more knowledge and education and you will be able to recover and profit.

I wanted to share my experience with the Scam brokers. I wanted to start trading few months ago and I started to watch videos in YouTube. Then I saw that it is possible that to be done with robots. I understood that meta trader is the best platform with that. I started looking for brokers that offer meta trader. Then it happened to me the same thing above explained by Sven. I registered for two demo accounts and they started calling every day. Then I realized that this is not normal and started looking for scans brokers. I found that topic and I am happy that it was here. Already registered with legit brokers and took the pack of the academy and I am first taking professional education before start trading without any idea…I do believe that this is the right way and I thinks the Academy for all the support and professionalism.

Hello to all,

For my soothing I did not met Scam Brokers to this moment… thank you to all about share with us your experience, I will be careful with Scam Brokers for future…

I have also been scammed by a whole host of brokers and services. I lost my business, my house, and my boat as a result.

It started when I became ill and couldn’t work for many months and an employee took advantage and stole all the liquidity out of the company in my absence.

I was trying to save the company and recover the liquidity and a friend trying to help introduced me to managed binary option accounts. He was having an amazing experience and his account was growing rapidly. Several people went in on this after the people who had invested earlier were getting payouts. Turned out it was a ponzi scheme but before this came apparent the mindset that you could make money with managed accounts set in and I was surrounded in a community that believed the same. I am not by nature a gambler and I am a hard worker and don’t give up easily, but because I was so vulnerable due to my situation, I lost alot and it destroyed me.

I had this very wrong and vulnerable idea that they can’t be all bad. I wont go into all the details, but I think I have been through the most. Also, I did not want to learn to trade as I was so busy trying to save the company (before I had to let it go), and learning to trade is no easy or quick task in my opinion.

Today I am still learning to trade and I am getting better all the time, but for me it has not been easy, and it is even harder when you are under tremendous pressure. I am in a group of traders where about maybe 10% are experienced and doing very well and are somewhat willing to help other learn to trade. Why I mention this is because, I cant imagine any of the successful traders I know even being willing to to trade someone else’s money. Why would they, they can trade their own money and they have lots of it (several I know trade between $500 to $2000 per pip). They don’t need the pressure of handling someone else’s account nor do they need another’s liquidity (which would be insignificant to their own capital). If they really wanted to help someone financially for whatever reason, it would be less hassle for them just to send some money.

What I have learned from this is that easiest way to identify a scam (because they come in so many forms) is that it is not reasonable that someone is investing in an email or telephone list and taking time out of their trading or leisure time to call around to people they don’t know to get small amounts of capital to trade with if they are any good. No matter how nice or convincing they are (scammers are good at this), there is no logic to this, and they will sooner or later blow your investment. Either they are an outright scam, they are an unprofitable trader, or they are a risky trader who may have good periods but sooner or later will blow it, and that is why they want to trade with somebody else’s capital.

A successful trader will have so many people that know them personally that are begging and nagging for them to trade their money for them, but even then, they probably won’t. Some may like to help others to learn as a way of giving back, and there are some real decent people and services, but they are rare and they are very unlikely to need to be too aggressive with marketing, not to mention cold calling people up.

The problem is that bad traders know all the lingo of the market and because they can’t trade, if they are unethical and a smooth talker, they get by from useless trading services and scams.

Don’t get me wrong, it can be lonely as a professional trader, and there are those that like to have a side hobby service and/or enjoy the community feel, but these are rare are very hard for a newbie to know the difference. If you have taken any of Petko’s courses and are not new to the learning process it’s not that hard to see he knows what he is talking about and has alot of experience in his field.

Dear Mike,
thank you very much for sharing the whole thing with everyone. I do believe that this way you will help many students never to “BELEAVE” that someone will call them over phone and will make them rich…unfortunately there are still 100s Scam brokers companies operating all over the world which are doing it.
Anyway, you have now the Mega Pack, you have all the necessary tools to create robust strategies. The bad experience you had will help you to be more strict in taking risk and to keep a good money management with your accounts always.

Hello Mike..

It is a terrible story about scam brokers.. thank you that share with us.. thank you to all for the advices..