Professional traders can make a lot of money trading on foreign exchange markets. This makes forex very attractive to new traders. Forex trading scams take advantage of traders who aren’t familiar with the markets and think they’re signing up for easy money.
Forex brokers make their money by adding spreads to every currency pair or charging commissions on each trade. Scam brokers can bring in victims by advertising low spreads and commissions, making it look like traders can more easily turn a profit. These brokers also use account bonuses to lure their victims. They add extra funds to the trader’s accounts when they make their deposit but then make it impossible for them to withdraw those funds.
Forex trading scams likely make up the single largest part of all investment scams. Many people trying to invest legitimately find themselves trading with a scam broker instead. If you can’t withdraw your funds from your forex broker, there could still be a way to recover your money.