Now that we understand a lot more about the world of forex scams, it’s time to show some real-life examples. Specifically, ones that many forex traders may have heard of.
The Dukascopy scam
Dukascopy itself is a perfectly legitimate business, that many people interact with. It is an exclusively online Swiss bank, with wide functionality. Traders can use it online and as a mobile app, and trade, and use general financial and bank services with it. It has a wide presence, with locations in Switzerland, Tokyo, Geneva, Singapore, Moscow, Kuala Lumpur, Kiev, Hong Kong, and Dubai. It also has a total of 300 employees. In summary, what we are trying to say is that the company is quite famous.
Recently, though, they made a discovery. Apparently, there was a scammer with the a similar name. Duker-broker.ru, to be exact, so within Russia. It offers crypto and forex trading services to people interested in them. It tricks investors into thinking they are legitimate by using the name and logo of the real company.
Once the real company realised this, they made an announcement to people to be wary of this company. They said that, despite how it looks, the company has nothing to do with them. They said it was likely a scam and recommended that people avoid it.
EuropeFX is supposedly a trustworthy and upstanding forex trading company. They have a regulator, Cyprus Securities and Exchange Commission (CySEC). This regulator is one people all over Europe acknowledge. Unfortunately, though, they do not have the best reputation. In the past, they have allowed financial institutions to get away with many shady practices. EuropeFX is just one of these companies that people usually dismiss as a scam.
This goes to show that not all regulators are trustworthy. Even if a broker has a regulator, they themselves may behave questionably. It is best to investigate every regulator you come across as well.