EA Forex Academy – Algorithmic & Manual Trading Courses › Forums › Forex Trading Forum › How to recognize the Scam Brokers?
Tagged: trustful Forex brokers
- May 16, 2020 at 15:28 #47810DesiModeratorMay 16, 2020 at 21:44 #47811
hi, Aleksandrov… thank you for your reply. The name of the broker is GSI markets. In the past they asked me to deposit certain amount of extra money in order to make a trade with a lot of Crude Oil. I did, and that was profitable adding like $300 to my balance. Then I tried to withdraw that same amount of money that I initially invested for the trade, but they said that I could not do that because they would loose money if I did that. In the end I was able to withdraw, but only like one fifth of the initial investment. I should be able to withdraw same amounts each month… I would like to withdraw all but I know they would not allow that. Other condition was that I needed to increase my balance closing positives, otherwise they would loose… I also dont see how they would loose, this is not how they make profits as far as I know, thank you.May 17, 2020 at 10:33 #47829
Yes, this is a scam method. What you describe is exactly how they work.
There are some companies that deal with scam brokers, but at the same time, there is scam among them as well.
So the best thing you can do is to withdraw the maximum you can and never answer the phone as well.
Just open a Demo account with any reliable brokers. You can use the ones that Desi listed above from our brokers’ page.
You will never receive a call from them, you can always withdraw your money without questions asked.
And just start learning from scratch. But make sure to forget it all…May 17, 2020 at 17:32 #47841
Hi Guys, i am new here, but I will go strait w/o any introduction, because at the moment ,after I red this topic to the end, I think there is a situation with my (scam) Broker -trading account – the name I may share after I escape from then and get my money back – so, I need to act immediately and try to save my money as much as possible.
So, every think I red here, used to happen to me too. Here a short history:
1. I registered and got a trading account, I payed the minimum 259EUR=ca.270USD by credit card (otherwise there was no support , nor trading permit) , my personal manager (Senior Trading Manager) called me, gave me his Email for further communication and questions asking and we started trading. I rejected the Bonus (100%) in order to avoid the 3 Months restriction for withdrawals . I also send them the required documents to get certificated/approved for any withdrawals. So far, so good.
2. He tolled me not to touch anything , he will take care for me the first 3 months to show/demonstrate me how easy is to trade with their algorithmic software and make profit without doing anything.
3. The money was transferred (by them) to a new account (algo trading – Meta Trader 4) and I sow trades started by some one (Robot or my Manager -not clear ) and showing some floating Profits and Floating Losses which have moved with the Forex market curses. On the History Tab I also sow some profits (no losses), like 5, 6, 10 USD etc.
4. What surprised me that on no one trade there ware no S/L entries (stop loss), just T/P (take Profit). I asked my manager why, and the answer was ” we don’t need S/L, because they would produce real losses which we don’t like – only profits. (first signal for “something wrong “).
5. With the time, the floating losses became so big (-$12–$15) and they were so many, that my equity became close to zero . So, I ask again my manager what is going on, yet my money is away, but he tolled me not to wary because their “magic” software is going to delete such losing trades and my money is safe. In deed, one day ( and every time when necessary) the (big) negative trades were cleared – they just disappeared- but there was no booking /notes of them in the “History” . How was this possible and who payed those losses? This was the second signal for “something wrong “.
6. With the time the trades became so many and the negative (floating) losses also, which ended in the fact that, although there was a real profit of ca. 100 USD on my “history”, my equity is always very low ( much less as my investment) , so now I understand that I will maybe never able , even if they allow me, to withdraw my money , because, I guess, before I initiate some withdrawal, I need to close all my orders and the result will be very low (because of the pending floating losses to the sat pending trades).
7. Last Friday , after the market closed, I saw on the open trade list there is a (small) floating Profit of $5, balance and equity about $ 370 so , I believe, if I close immediately all the trades, I would be able to escape with a good amount, may be with profit too, provided that they will not create some additional restrictions to stop me.
So, please, help me what to do:
a) can I act right now ( Sunday afternoon , when the markets are closed), bu may be my broker would accept to close the trades and to initiate my withdrawal request, or it should be smarter to wait until Monday Morning ? The risk:When I wait, they may initiate tomorrow 01:00 another (new) trades with losses and my equity will go down again.
b) after I close those open trades and request withdrawal , shall I send them Emails to ask to transfer my money urgently, because I have financial problems (Covid 19 etc.)?
c) what, if they blocked my algo- account, not allowing me to close the open trades? Is there some hope to save the money in this case?
Thank you for you help in advance
MichalMay 18, 2020 at 9:54 #47923
I am sorry to hear from another person who was scammed.
I think you hit on very bad scammers. If the negative trades are just disappearing that means only one thing – there is no trading at all, you don’t have an actual trading account and trades opening. Those companies are just simulating some platform that has nothing to do with the real market.
Give it a try to ask for a withdrawal, but I don’t think they will do that. But of course, you have to try.
And the most important thing: WHATEVER THEY SAY, DON’T DEPOSIT MORE.May 18, 2020 at 14:30 #47964
Thanks Petko, I will try to withdraw, of course. But early Today they started another 6-8 trades, which show minuses (totally floating Loss by now ca. $90). This is not big deal – usually all new deals start with small minuses (correct??)- , but at the moment the figures are all minuses ( free margin:- $10 -s. screen here attached), so I think even if they proceed with the withdraw request normally, there will be nothing to take out. Unless I close all the trades (if they allow me) and consume the current floating Loss. But this may give them a red light and they may block my withdraw. Maybe I need to wait some time and hope to see better figures those days (as it was last Friday). I will report the result. So, thank you again : See U soon. MichalMay 18, 2020 at 22:26 #47971
Actually it is totally ridiculous that the broker opens and closes your positions…there is no such a thing in actual trading…
The brokers are there for us to give us the opportunity to trade. And we manage the trades – opening and closing.
So, just find a way to get rid of them.May 30, 2020 at 22:32 #49591VanParticipant
Ruuuun away, mate!
Why are you causing this to your self. Check out the trusted brokers that the Academy launched recently.
I hate the scammers….June 15, 2020 at 23:24 #51143Bart MeijrinkParticipant
I can’t believe what I read… how come the people do not recognize the Scam Brokers??
Looks like they do Wolf on the Wallstreet nowadays but in a modern way – forex and robots.July 11, 2020 at 15:41 #53501AndiParticipant
Yes, that is right, Bert!
They do it much more successfully compared to what the Wolf did.
I have a friend working is such a company and he is so proud of cheating the people…their salaries reach up to 50 000EUR a month.
They Scam over 300-400 people a day and their monthly revenue is in millions.July 31, 2020 at 14:34 #55620
Hi , time to report again
As stated here above, I felt in the trap of one Scammer. Invested 250EUR= ca. 270USD
They transferred the money (without asking me) to a new account called “algo trade”.
After I recognized that they are a scammer (s. here above) and following the advises from Petko and this forum, I started/tried many steps , like this:
1. I ordered a withdrawal of my investment (ca. 300 ) back to my credit card, but they did not fulfilled it: On my account /transaction history they put “pending” and after 1-2 weeks “Canceled”.
2. Then I started writing them to all known Email Addresses, like “Customer service”, “Compliance”, Personal advisers etc.: They confirmed that my documents are OK and my identity is proved, “Claims ” etc. . I tolled them that now -corona time- I have financial problems and I need badly my money back, and I will be back, etc.. NO REACTION. Just computer answers, like “We received you mail and our customer support/personal manager will come back to you soon. Once they answered “As you are using a third party software, there is nothing which we can do” What does this mean?
3. Mean wile many mans called my offering me new deals and more to invest, but once I tolled them that I am waiting for my money back, they just closed the line.
4. Finally one guy tolled me that according to the special “automatic trading contract ” (which I ‘ve never signed), I need to send them cancellation notice and after 90 days they will close this account and send back the money.
5. What to do? I sent them the “90 days cancellation Note”. Since that time my tragedy has started. The Equity began to follow down quickly. Today the Balance is 600 ( so they made a reasonable profit in the last 3-4 months), how ever there are many open trades with no S/L entries, with big floating Losses, like 25 to40 $, witch leads to a current floating loss of ca. -700 $ and the Equity shows -250. So, if the do with the same tempo, nothing will remain after 90 days the equity may reach unlimited amounts.
6. I tried to close some open positions/Orders : <Select/right click/market execution> but nothing happened. Just Messages like “Your order is being proceeded” + “Time OUT”. So, it looks like I have no power to operate on this “Algo Trade”- Account. I am using the WEB platform, shall I try with the PC _APP which they offer to download too?
So, Can some body help me with some advises? Please?
A) How to understand the negative Equity? Do I own them this money? I have no credit line with them, but in the same time, I don,t know what is written in this “auto trade contract”, if there is such one al all.
B) Is it usual that one normal broker let you trade down to negative equity and that he requests the negative amount. Yet they got my IDs and know my address.
C) Shall I block my credit card- the only payment instrument they know?
D) What else to do to protect and save myself?
E) Is there a official authority where to claim and ask for help?
Please, help me to escape.
MichalJuly 31, 2020 at 17:19 #55623
can you share the name of the broker so we stay away from them?July 31, 2020 at 17:22 #55624
one thing I do to protect myself is that I do not use a conventional credit card but an “on-line” credit card that can only be used for internet payments and only the money that has been deposited-before hand can be withdrawn (just like a Debit card). You should ask your bank if they offer such type of credit cards…August 2, 2020 at 23:55 #55862
[jankrafka] “can you share the name of the broker so we stay away from them?”
Thanks [Jakrafka]: I can share their name, but only after I get escaped from them. Other wise they may block my account and any payments because of contract violation.
May be I should block my credit card which would make any withdrawal returns impossible, because the CC is the only way for payments .
Still I am not sure. Does some one know how the could collect the negative equity/balance from me?
This the main question where I need help the fact thay my initial investment will be also gone. So sad….August 4, 2020 at 8:19 #55944
I am sorry to hear that you are still in trouble. As I wrote to you the first time, you have hit a bad scammer.
If you can not close the trades, it means that you don’t have any control over the account.
I think the trades that you see in the account are not real at all. This means that the profits you saw were not real as well. This is something on their platform. They have some algorithms to show the clients’ profits, and then when they decide losses. This way, they have a reason to start calling you and ask you for more money.
If I were you, I would block the card that I used for funding the account. They have your credit card details, and they can withdraw at any moment from there. You lost enough, so don’t let them get more! Sadly to say, your initial deposit was gone at the moment you funded the account.
I would suggest you not to look for any authorities because there are the other scammers. You can not recognize which are the legit ones. They might scam you from there as well.
What would I do?
1. Block the credit card that was used.
2. Don’t open their website/platform ever again (this will make you forget about it)
3. Start practicing with a Demo account with any of the trusted brokers on our websites, and take some courses to learn how to do it by yourself
4. Don’t ever depend on someone else to manage your money
I know 250 is not a small amount, and it hurts. But I can tell you that people lose millions daily because of the scam brokers. Just in Bulgaria, there are over 300 such brokers, and so many people know about it, but no one does anything. They pay to the right people, and they keep scamming…
So…just say to yourself. ” I lost the minimum” “This was an experience that will be a good lesson for me” ” I am healthy, and this is the most important.”
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