Trading Scam Online, how to avoid

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Is Online Trading a Scam or does it work? There are many aspiring traders who are undecided and who start their adventure in the world of trading by searching Online Trading Scams on Google.

On the one hand, they have heard the stories of those who have made it and who make money with online trading. On the other hand, they fear that trading is a scam and it is better to stay away from it. With trading do you make money or not? Is it a scam?

There is actually some truth in both views. Online trading is a form of short-term investment with high returns but in some cases it can also hide scams. But let’s go in order.

Online Trading Scam, what is that?

Thousands of naive traders fall into these scams daily and end up losing all their money. Then they are convinced, unfortunately, that all online trading is a kind of legalized scam but it is not.

There are many reliable and safe brokers with which you can trade without any kind of risk of scam. They are the authorized and regulated brokers who therefore offer very high levels of security: when a broker requests (and obtains) the authorization to operate, he must comply with all the rigorous European regulations that aim to defend, always and in any case, the money of the trader.

Just think about how stringent the new ESMA regulations are, it is the European Financial Instruments and Markets Authority, that protects the stock exchange and investments on all types of assets such as NASDAQ indices. 

Brokers such as ForexTB or eToro, which are authorized and regulated, therefore offer the maximum possible security, a real guarantee against scams.

However, those who choose to operate with brokers who are not authorized and regulated in Europe (or who are not really regulated) seriously risk losing money.

Regulated brokers are not controlled by anyone and do not comply with any type of law. It is therefore obvious that they cheat their customers. Traders who choose to trade with unregulated brokers end up believing that all trading is some kind of scam but this is absolutely not the case. It is they who have chosen to sign up with a broker who is not sure. 

Avoiding this type of scam is very simple: just use authorized and regulated brokers, checking if necessary on the CONSOB website. Even better, it is always worthwhile to trade with well-known brokers whose reviews can be found on the internet.

For example, those who Google ForexTB reviews will find plenty of positive reviews. And the same thing we can say about eToro (or other brokers, let’s talk about these 2 as an example because in fact they are among the simplest ever to use).

Online trading is not dangerous, therefore: everything is about using the right tools (and it is not at all difficult to make a correct choice).

Avoid trading scam with the best online trading platforms

Which are the truly safe and reliable platforms to trade online without the risk of scam? There are many platforms that do not scam and that I am sure (fortunately) in this paragraph we only give a few examples. The online trading platforms that we consider are the simplest ones, also suitable for beginners.

Why did we make this choice? Because usually beginners are the ones who suffer scams by non-regulated brokers! Furthermore, we have only selected platforms that do not charge trading fees for the simple reason that they are much more convenient for traders.

Platform: etoro
Min. Deposit: 200€
License: Cysec
  • Social Trading (Copy the best)
  • Simple and intuitive
  • ➥ Start
    1star 1star 1star 1star 1star
    Platform: xtb
    Min. Deposit: 400€
    License: Cysec
  • Free demo
  • Whatsapp Group
  • ➥ Start
    1star 1star 1star 1star 1star
    Platform: iqoption
    Min. Deposit: 10€
    License: Cysec
  • Free demo without limitations
  • Minimum deposit low
  • ➥ Start
    1star 1star 1star 1star 1star
    Platform: plus500
    Min. Deposit: 100€
    License: Cysec
  • Professional Platform
  • Intuitive and Reliable
  • ➥ Start
    1star 1star 1star 1star 1star
    Platform: trade
    Min. Deposit: 100€
    License: Cysec
  • Free demo
  • Free course trading
  • ➥ Start
    1star 1star 1star 1star 1star
    Platform: forextb
    Min. Deposit: 250€
    License: Cysec
  • Free trading course
  • Free trading signals
  • ➥ Start
    1star 1star 1star 1star 1star
    Platform: avatrade
    Min. Deposit: 250€
    License: Cysec
  • Copytrading
  • Protection from risks
  • ➥ Start
    1star 1star 1star 1star 1star
    Platform: ubrokers
    Min. Deposit: 250€
    License: Cysec
  • Free Training
  • Zero Commissions
  • ➥ Start
    1star 1star 1star 1star 1star

    ForexTB

    One of the favorite choices of beginners starting online trading is ForexTB. Why? It is one of the simplest and most intuitive platforms ever. Anyone who wants can also receive free phone assistance from a true trading expert who provides precise information.

    ForexTB is famous for offering an excellent guide to online trading for free: the course has had hundreds of thousands of downloads in Europe. Why? This is probably the best practical online trading course: it explains step by step how to quickly achieve success.

    Among other things, the course is written in a very simple language that even a beginner can understand without problems. And then it’s free: many trading courses are paid (some even cost 7,000 euros) with the ForexTB course you can learn everything you need for free. You can click here to download it for free.

    ForexTB is a safe, reliable and commission free platform. It is also possible to operate with an unlimited free demo with no restrictions. We remind you that online demo trading is a way to quickly and without risk improve your trading experience and knowledge.

    Click here to join ForexTB for free

    eToro

    eToro is an excellent option for beginners who want to start trading online without errors. Not only does it offer a platform that is very easy to use, intuitive and secure but allows you to copy, in a completely automatic way, what the best traders do.

    How does eToro work? Thanks to the patented Copytrading system, it is possible to search for traders who have obtained the highest profits in the past. With a simple click you can start copying these traders.

    Many novice traders use eToro for this very reason: they start earning immediately and learn by watching what the best traders in the world are doing.

    You can join eToro for free by clicking here

    Iq Option

    Iq Option is chosen by traders who want to start with very little: it allows you to start trading online with real money with an initial capital of just 10 euros.

    Anyone who wants can obviously operate in demo mode therefore without the need to make any deposit. The Iq Option demo is really good, unlimited and without restrictions and therefore allows you to accumulate the necessary experience to start trading online with real money without fail.

    Iq Option also offers hundreds of very good video courses that explain exactly how online trading is done. The courses are appreciated because they really explain everything, starting from the basics up to the most performing strategies.

    You can sign up for free on Iq Option by clicking here

    Online Trading Scam: easy money

    Unfortunately, the dangers of scam in online trading do not come only from unregulated brokers. There are even worse things: schemes that promise easy money.

    These are real scams carefully organized. Usually, scammers create a website with a captivating video that explains how, thanks to a miracle system, it is possible to get rich in a short time with a small investment.

    These videos also contain bogus testimonials from people who assure that they have quickly amassed a large fortune thanks to the automated trading method. A small initial investment is enough and all dreams can be realized.

    The reality, unfortunately, is very different: easy money does not exist and those who fall into these traps are heavily cheated. There is no automatic trading method that creates high fortunes in a few days and scammers get rich (fast).

    To make their systems even more attractive, scammers often use the image of famous people such as Bill Gates, Flavio Briatore, Elon Musk or Donald Trump in advertising.

    One of the best-known examples of this type of scam is the Bitcoin System which promises easy and safe earnings thanks to Bitcoin trading. Whoever falls into the trap is completely cleaned up, none of the victims has ever been able to recover even a single penny!

    Obviously Bitcoin is not a scam (everyone knows that buying Bitcoin is an excellent investment) but you have to be very careful about scams.

    In addition to Bitcoin, scammers also leverage shares: the scam that promises to make money with Amazon but actually makes you lose everything quickly has become famous.

    You can defend yourself from this type of online trading scams in a very easy way: by not believing in fairy tales. Easy money doesn’t exist, anyone who promises easy money is a scammer.

    Unregulated trading platforms

    Another type of rather dangerous online trading scams are unregulated trading platforms.

    A regulated trading platform is required to comply with the very strict European regulations to protect investor money. The supervisory authorities (for example CONSOB and CySec) constantly monitor to verify that these regulations are respected.

    What happens with an unauthorized or regulated trading platform instead? In this case, European regulations are not respected (at most those of some remote tax haven) and there is no one watching.

    With an unauthorized trading platform, anything can happen: the account can be cleared overnight or the withdrawal can be prevented with the most absurd excuses. It is never advisable to operate with an unauthorized trading platform such as Tradixa.

    But what drives a trader to operate with an unsafe platform when he could have all the guarantees thanks to the authorized and regulated platforms?

    First, unfortunately, novice traders often ignore this problem completely and therefore choose the platform without checking whether it is authorized or not. Ignorance can have terrible consequences, study before trading!

    NO ESMA Platforms

    Recently even some experts have fallen into the traps of unauthorized platforms. How? Because they registered on NO ESMA platforms in order to escape the limitations imposed by ESMA (European Authority for Financial Instruments and Markets) on online trading.

    The paradox is that ESMA has acted precisely to limit scams, but has missed the target. What happened?

    Many of the trading platforms that scammed customers did so through free bonuses and leverage. It is important to note one detail: these platforms were all unregulated.

    Now, ESMA has banned bonuses and imposed a severe limitation on leverage in an attempt to stop scams. The fact is that the platforms that cheated have continued to do so without worrying about the new regulations (they don’t respect any of them anyway).

    Serious platforms, the ones that offered their customers a real advantage with free bonuses and high leverage, had to eliminate bonuses and reduce leverage.

    This is why experienced traders have started using No Esma platforms, i.e. unregulated platforms. But it is a mistake because in this way they expose themselves too much to the risk of scam.

    There is a solution to the problem, however: to be recognized as a professional trader. In this case, the ESMA regulation does not provide for any type of limitation. How do you get qualified as a professional trader?

    There are few requirements to be met; in any case, those who register on ForexTB have the help of the experts who work for this platform at their disposal. They will do everything themselves, it only takes a few minutes. The qualification of professional trader is portable, so once obtained it is always valid, on any platform.

    Borderline Trading Apps

    Then there are cases of trading apps, such as WEWE Global or Robinhood which, although not scams, are really at the limit. In particular, Robinhood is a platform that does not apply trading commissions to clients but then resells the data of the clients’ operations to high frequency operators who even manage to anticipate them.

    In this way, the customer finds himself, for example, paying slightly more for the share he wanted to buy. The SEC, the American supervisor, intervened and opened an investigation.

    Read more: Trading Apps.

    Phone Trading Scam

    Many times the scammers use the phone to contact their victims. These are the infamous trading calls that shouldn’t be answered.

    If you get an unwanted call that promises you can make huge profits for a tiny investment, hang up now. Immediately block the number from which you received it to prevent them from contacting you again.

    It goes without saying that you are not interested or to argue over the phone: foreigners are often called (usually with a heavy Eastern European accent) who will insist until exhaustion to make you invest with their wonderful automatic trading system. If you really don’t give in, they will eventually swear at you.

    So better close now and block the number.

    Of course we are talking here about unsolicited trading phone calls. Extremely different is the case in which a trading platform to which you have registered is calling you and calling you to offer you assistance and help.

    In this case, not only should you answer but the content of this phone call can be truly valuable and can make the difference between losing and making money.

    Trading Money Recovery

    The number of Europeans scammed with online trading in recent years is staggering. The stolen sums are also very high, hundreds of millions of euros. Many have been looking for a way to recover the money stolen by trading scams.

    Unfortunately, the complaints are completely useless: the scammers have the opportunity to erase their tracks and above all transfer the money they manage to receive in tax havens, safe from the action of European investigators.

    The scammers, among other things, stop at nothing. Some of them have created bogus businesses or bogus law firms that promise to recover the stolen sums. They only require a small payment to get started. Obviously, as soon as the money is collected, they disappear.

    Basically, if you have been scammed by some trading system and believe you are getting your money back, you risk being scammed for the second time.

    The only way to defend against scams is to operate exclusively with authorized and regulated platforms. If you have already lost your money, put your soul in peace: there is no way to get it back!

    How to report a trading company

    Is there a possibility to sue a trading company? To be honest, filing a complaint is very easy. Just go to the nearest Police station and make a report.

    Obviously those who have suffered a trading scam (or have lost money for some problem) not only want to report, but also want to get back the lost money.

    Here we must distinguish two cases:

    1. CONSOB regulated brokers (or by other European authorities such as CySEC)
    2. Unregulated brokers.

    In the case of unregulated brokers, there is no hope of getting your money back. In this case, you just have to pay attention to the various jackals that will show up at the victim’s door with the promise of recovering the lost money (in 99% of cases they agree with the scammers).

    In the case of regulated brokers, however, not only is there hope of recovering any unjustly lost amount, but it is also easy.

    Premise: it is technically impossible for a regulated broker to scam their client. There are rare cases in which there may be technical problems and here it is enough to notify regulatory bodies to obtain compensation for the damage.

    Usually the regulated broker compensates the client (even when the client is wrong) to avoid any kind of problem with the regulatory bodies and therefore even before the complaint is presented.

    The vast majority of quality brokers (the ones we recommend using) are also covered by a guarantee fund, identical to that of banks, which covers losses of up to 20,000 euros (but this limitation is not a problem since it usually starts with 250 euros).

    Trading Scam: fake online trading

    As for most of the trading scams, we can say that they are fake online trading.

    The scammers, in fact, pretend to offer a trading platform or a way to do automatic trading. In reality their system does not work at all and only serves to get the money of unsuspecting customers like 1k Daily Profit.

    This money is immediately stolen and transferred to some tax haven where the European investigators cannot reach. Unfortunately, fake online trading is on the rise and doing more and more damage.

    It is estimated that this type of scams cause damage for 500 million euros a year in Europe. And it must be calculated that unfortunately they are very widespread. How do you defend yourself?

    The answer is simple and we have already given it: remembering that fairy tales are not reality and that you cannot get rich quickly and without doing anything. And then by operating exclusively with authorized and regulated online trading platforms, the only ones that are really safe!

    online trading scams

    Conclusions

    In this article we have explained what the most dangerous online trading scams consist of and how you can defend yourself. The simplest way to avoid scams and operate peacefully with trading is to operate exclusively with authorized and regulated platforms.

    Below is the complete list of the best:

    Platform: etoro
    Min. Deposit: 200€
    License: Cysec
  • Social Trading (Copy the best)
  • Simple and intuitive
  • ➥ Start
    1star 1star 1star 1star 1star
    Platform: xtb
    Min. Deposit: 400€
    License: Cysec
  • Free demo
  • Whatsapp Group
  • ➥ Start
    1star 1star 1star 1star 1star
    Platform: iqoption
    Min. Deposit: 10€
    License: Cysec
  • Free demo without limitations
  • Minimum deposit low
  • ➥ Start
    1star 1star 1star 1star 1star
    Platform: plus500
    Min. Deposit: 100€
    License: Cysec
  • Professional Platform
  • Intuitive and Reliable
  • ➥ Start
    1star 1star 1star 1star 1star
    Platform: trade
    Min. Deposit: 100€
    License: Cysec
  • Free demo
  • Free course trading
  • ➥ Start
    1star 1star 1star 1star 1star
    Platform: forextb
    Min. Deposit: 250€
    License: Cysec
  • Free trading course
  • Free trading signals
  • ➥ Start
    1star 1star 1star 1star 1star
    Platform: avatrade
    Min. Deposit: 250€
    License: Cysec
  • Copytrading
  • Protection from risks
  • ➥ Start
    1star 1star 1star 1star 1star
    Platform: ubrokers
    Min. Deposit: 250€
    License: Cysec
  • Free Training
  • Zero Commissions
  • ➥ Start
    1star 1star 1star 1star 1star
    Is Online Trading a Scam?

    No, online trading is not a scam but a potentially very profitable investment.

    How do you protect yourself from trading scams?

    It’s simple: using only authorized and regulated online trading platforms. Then we must always remember: the gain is not easy.

    How come the authorities fail to stop scammers?

    Unfortunately, they operate via the internet from tax havens where investigators do not have access. However, it is easy to prevent scams: just use only authorized and regulated trading platforms.

    Who are the victims of trading scams?

    Usually less experienced traders who can be fooled by the promise of an easy and safe profit.

     

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