Forex and Gold Broker Scam Red Flags: 12 Checks Before You Deposit

Most people who lose money to a fake or rogue broker were not careless. They checked a website that looked professional, saw a licence number, and talked to a friendly account manager. Every one of those things can be faked. The checks below cannot.

The one check that matters most

Find the company named in your account agreement, then find that exact company on the regulator's own register. Not the brand, not a screenshot of a certificate, not a licence number on the broker's website: the legal entity, on the regulator's site.

Our broker rating shows, for each broker and each country, which company would hold your account and links to the regulator's register so you can check it yourself.

12 red flags

About the licence

1. The licence number belongs to a different company. Clone firms copy a real firm's name and number. The register entry will show the real firm's website and contact details, which will not match.
2. The licence is "pending" or "in application". It is not a licence.
3. The only licence is a company registration. A registration in an offshore jurisdiction does not mean anyone supervises the firm's forex business. Our rating calls this Tier 5 and caps the score at 30.
4. The regulator has published a warning. Search the broker's name on the warning lists of the FCA, ASIC, CySEC and the securities regulator in your country.

About the people

1. Someone you met online introduced the broker. A new contact on a dating app, Telegram or WhatsApp who talks about their trading profits and suggests a platform is the opening of a well-known scam pattern.
2. An "account manager" or "mentor" trades for you or tells you what to trade. Legitimate brokers do not manage your account unless you signed up for a regulated managed service.
3. You are pressed to deposit more to "unlock" a withdrawal, pay a "tax" or meet a "bonus requirement". This is the single most reliable sign of fraud.

About the money

1. Deposits only by crypto, gift cards or transfer to a personal account. A regulated broker takes payment in the name of the licensed company.
2. The first small withdrawal is fine and the large one is not. Test a withdrawal early, and test it again before you add more money.
3. Returns are promised or guaranteed. No legitimate broker guarantees trading profits.

About the platform

1. The platform is an app you can only install from a link, not from an official app store. Fake trading apps show invented profits.
2. Prices do not match the rest of the market. Compare the gold price on the platform with a public source such as the gold price page. A platform that shows you a different market is not connected to one.

What to do if you think you have been scammed

1. Stop depositing, whatever reason you are given.
2. Save everything: messages, transaction records, the website, the names you were given.
3. Report it to the regulator in your country and to the police. In the US, report to the CFTC and the FBI's Internet Crime Complaint Center; in the UK, to the FCA and Action Fraud.
4. Beware of "recovery" services that contact you offering to get your money back for a fee. They are very often run by the same people.

Questions traders ask

Is a broker regulated offshore always a scam? No. Many large brokers serve some countries from offshore entities. But offshore regulation offers you much less protection, and you should know which company you are dealing with.

Can I trust broker reviews? Check who wrote them and how the site makes money. Our methodology is public, partner relationships are disclosed, and they never enter the score.

The broker has a famous sponsor. Does that mean it is safe? Sponsorships are marketing. They tell you nothing about which company holds your money.