AuthorAuthor: Chris Cammack
Updated: February 23, 2023
Last Updated On February 23, 2023
Chris Cammack

How do I avoid being scammed?

Forex scams are an unfortunately frequent problem in Australia, and we get emails frequently from traders who have been unable to withdraw money from their accounts or facing other forms of resistance from brokers whose sole purpose is to have clients deposit, and then refuse to refund the money.

There are some steps you can take to protect yourself.

  1. Never give money to someone to trade on your behalf. It is illegal in Australia for anyone to invest on your behalf without a licence from the Australian Securities and Investment Commission (ASIC). 
  2. Never send money to people you meet on social media, in our research we have found that over 50% of Forex scams start on Facebook and Instagram.
  3. Never trust any broker or person offering guaranteed returns. Forex trading is high-risk speculation and profits are never guaranteed.
  4. Always check whether a broker is regulated. Regulated brokers are required to publish their licence numbers on their websites. See below for IC Markets’ Australian licence and registration number across the bottom of their website:

    IC Markets ASIC Licence
  5. Once you know a broker’s licence number, check with the regulator to see if the broker’s licence number is legitimate. ASIC in Australia keeps a register of all companies with an Australian Financial Services Licence (AFSL). Below we can see the IC Markets’ are listed by ASIC as Australian Financial Services Licensee:

    IC Markets AFSL
  6. If your broker is not based in Australia, other major regulators such as the FCA (UK) and CySEC (Europe) all have searchable registers. Moneysmart also keeps a list of companies that are known to be scams, if you’re suspicious it’s worth checking this list.

I think I have been scammed, what should I do now?

If you believe you are a victim of a scam broker, the first step you should take is to contact your local regulator and make a complaint. In Australia, you can contact ASIC here. If your broker is based overseas it’s also worth getting in touch with the Australian Competition and Consumer Commission (ACCC), you can report a scam to them here.

We also collect information on scam brokers and Forex traders in Australia. Please let us know your experience using the form below.

What we will do with your information:

  • We collect answers from lots of traders and where we see a trend, we will conduct research into the broker in question and publish those results. Your voice matters a lot here.
What we will not do with your information:
  • Publish your personal details.  We may share your story, but will never attribute the comments to any one individual. Your privacy is respected.
  • Smear brokers where we can not find evidence of wrongdoing.
  • Represent individuals to help you recover your funds. We are not lawyers and don’t have the ability to do this.  We are just a public warning system.

Stay updated

This form has double opt in enabled. You will need to confirm your email address before being added to the list.