Regulators publish new warnings about fake brokers and investment schemes every week. Most share the same warning signs.
Warning signs
- Guaranteed or very high returns, like doubling your money in a week. Trading always carries the risk of loss.
- Contact out of the blue on social media, chat apps or dating apps, often by an 'account manager' or 'mentor'.
- Pressure to act fast or to deposit more to 'unlock' profits or a withdrawal.
- No licence number, or a number that belongs to a different company on the register.
- Claims of being 'registered' with a company registry, which isn't a financial licence.
- Fees or 'taxes' you must pay before you can withdraw.
- Payment requested in crypto, gift cards, or into a personal bank account.
- Impersonation of real firms, celebrities or regulators. The FCA says it will never ask you to transfer money to it.
- 'Recovery' services that offer to get lost money back for an upfront fee.
What to do
- Stop paying and don't send ID documents or passwords.
- Check the firm on the regulator's register (see our licence guide).
- If you've paid, contact your bank straight away.
- Report it to the regulator and, where relevant, the police.
General information, not advice. Brokrpedia is not an FSP. CFDs are leveraged and most retail traders lose money.