There are so many FX scams out there at the moment (and indeed many others). Unfortunately scams are even bigger at the moment whilst interest rates are so low and Covid is taking its toll.
The majority of the FX scams rely upon word of mouth recommendations/sign up "commissions" etc to circulate on the internet. As a group of online earners, we should be aware of this as I know lots of people do make decent money from recommending services. (Nothing wrong recommending services may I add as I believe everyone on here is doing this legitimately or in good faith).
To be absolutely clear, copy trading and any other FX/stock portfolios where it is passive and you just put in cash rather than actively trading yourself is illegal (and therefore a scam) unless they are authorised by the Financial Conduct Authority (FCA). The FCA ensures it is a legitimate business and you have certain protection over your invested cash.
Before investing you MUST check out the firm and make sure that they are authorised by the FCA. You can check:
1. The FCA's register to check they are authorised (some scams claim they are, but are not regulated)
2. The FCA's warning list of companies to avoid.
Don't just line the pockets of the organised criminals and scammers. If you see something you believe is a scam, please help to report it to the FCA and others being scammed.
Further advice from an Age UK site is here:
The returns then stop, the account is suspended and there’s no further contact with the firm. Many claim to be authorised by the FCA (Financial Conduct Authority) and give registration details of another company a ‘clone firm’. Some scammers sell details on to other criminals who then offer to get your money back or buy back the investment after you pay a fee.
Protect yourself:
The majority of the FX scams rely upon word of mouth recommendations/sign up "commissions" etc to circulate on the internet. As a group of online earners, we should be aware of this as I know lots of people do make decent money from recommending services. (Nothing wrong recommending services may I add as I believe everyone on here is doing this legitimately or in good faith).
To be absolutely clear, copy trading and any other FX/stock portfolios where it is passive and you just put in cash rather than actively trading yourself is illegal (and therefore a scam) unless they are authorised by the Financial Conduct Authority (FCA). The FCA ensures it is a legitimate business and you have certain protection over your invested cash.
Before investing you MUST check out the firm and make sure that they are authorised by the FCA. You can check:
1. The FCA's register to check they are authorised (some scams claim they are, but are not regulated)
2. The FCA's warning list of companies to avoid.
Don't just line the pockets of the organised criminals and scammers. If you see something you believe is a scam, please help to report it to the FCA and others being scammed.
Further advice from an Age UK site is here:
Forex trading and brokerage scams
UK consumers are being increasingly targeted by unauthorised forex trading and brokerage firms offering the chance the trade in foreign exchange, according to National Trading Standards. Most consumers report they initially receive some returns, they are then encouraged to invest more money.The returns then stop, the account is suspended and there’s no further contact with the firm. Many claim to be authorised by the FCA (Financial Conduct Authority) and give registration details of another company a ‘clone firm’. Some scammers sell details on to other criminals who then offer to get your money back or buy back the investment after you pay a fee.
Protect yourself:
- Check the firm is regulated by the FCA.
- Ask the company for the firm reference number (FRN). Use this number to search the FCA’s register.
- If they are not registered check the FCA’s warning list of firms to avoid.
- Never use a phone number link in an email or website from the firm offering the investment.
- Don’t be pressured to invest quickly.
- Be wary of promised returns that sound too good to be true.
- Seek independent financial advice or guidance before investing.