What are the types of forex scams? You need to know before paying

Open technology makes it easier for the general public to invest. In this digital world, trading foreign exchange (Forex) has become a popular choice. But what comes with it is “Forex scams,” which are common. Many novice traders fall into traps because they don’t realize they are being scammed. How dangerous is this? Let’s see what types of scam schemes exist in the Forex industry.

What is Forex Scam and Why Is It Dangerous?

Forex scam involves deception to steal money from traders. There are many ways scammers deceive people—from creating fake websites pretending to be legitimate brokers, to tricking investors into sharing their funds and then disappearing with the money. The problem with Forex isn’t the market itself—it’s the deception. It’s not the market that is dangerous, but rather unscrupulous individuals who scam through websites and applications.

The truth is, Forex is a real foreign exchange trading market. But because it’s too easy to access, malicious actors create scam systems—selling cross pairs, teaching trading, using bogus AI programs, and even inviting friends to invest for commissions.

6 Common Forex Scam Methods Used by Scammers

1. Fake brokers without licenses

This is the first thing scammers like to do—create a broker website without registration from any official authority. They pretend to have licenses from foreign agencies like FCA or others, but upon checking, you’ll find they don’t.

When you invest with an unlicensed broker, you cannot file complaints. Once the money is gone, it’s gone—no protection, no appeal.

2. Automated AI trading programs that are bogus

Scammers sell AI programs claiming they will trade automatically and generate profits up to 20% per day, which is impossible because markets don’t have such consistent statistics.

Initially, you might see small profits, but when the market changes, the system stops working, and you will lose money quickly. When you try to find the programmer, they are no longer available.

3. Imitating reputable names and cloning real identities

Scammers create websites and emails that look like those of well-known brokers. In reality, they are fake, using foreign phone numbers and email addresses that seem legitimate.

This confuses investors into thinking they are trading with real companies, but in fact, they are on another fake website.

4. Offering advance deposits and then requesting more

This method seems reasonable—deposit money, make profits, but when you want higher returns, scammers ask for more money or request to switch to digital currencies.

They rush you to deposit with strict deadlines, which real brokers would never do.

5. Deceiving on social media and pretending to be celebrities

Scammers create fake Facebook, Twitter, Instagram accounts impersonating famous traders or coaches, claiming they will teach trading, and ask for money to be transferred to their accounts. Once you transfer, the account disappears.

6. Pyramid schemes—multi-level marketing investment schemes

Similar scams have occurred in Thailand and Southeast Asia—companies claiming to be real Forex brokers ask for deposits of 50,000-60,000 THB or more, promising 10-15% monthly returns.

But in reality, it’s a system that encourages inviting friends—earning 5% commission per person. The initial funds come from new investors, paying earlier investors, until the scheme collapses and many lose their money.

Warning Signs That You’re Being Scammed

1. Promising unrealistically high returns

Promises like “50% profit per month” or “10% daily” are signs of scams. Legitimate brokers do not make such promises because markets are risky. You may profit or lose depending on your skills.

If someone promises this and says just follow their instructions, beware—it’s definitely a scam.

2. Asking for increasing deposits

Starting with a small amount to create the illusion of profit, then when you want to level up, they ask for more money or suggest switching to digital currencies with strict deadlines.

This is a clear sign you’re being scammed because real brokers do not rush you.

3. Showing a glamorous lifestyle

Posting pictures of luxury cars, traveling abroad, living a luxurious life, claiming “This is the result of Forex trading”—this is deception.

Real coaches or successful traders do not waste time showing off. They teach real techniques, reading charts, entering and exiting at the right moments.

4. Asking to invite friends for commissions

“Invite 10 friends and get 50% commission”—this is a Pyramid Scheme indicator.

5. Celebrity endorsements without verification

Saying “Celebrity A invested here”—try to verify this information.

What to Do If You Have Been Scammed

1. Stop transferring money

If you suspect you’ve been scammed, do not send any more money. This is the final warning sign.

2. Gather all documents

• Website, product information, terms and conditions
• Emails, chat messages, contact phone numbers
• Their address, bank account details
• All evidence of deception

Keep everything systematically; it will be needed for legal action.

( 3. Contact investment authorities and hire a lawyer

Report the incident to consumer protection and investment authorities—such as the SEC in Thailand—or your local police.

Hire a lawyer to seek legal resolution, which may include recovering funds or claiming damages.

Self-Assessment

Forex scams are real and diverse enough to deceive many. But if you recognize the warning signs—choose licensed brokers, avoid rushing, and do not make false promises or unrealistic returns—you can reduce the risk of being scammed.

Good Forex trading is not about finding someone to do it for you, but about learning yourself. Choose a safe broker, trade your own way, and do it securely—definitely safer.