If you’re new to trading, listen up.

There are serpent companies and individuals out there, with only one goal.

To make profits and money for themselves and NO one else.

They do this by exploiting the newbie trader’s optimism, greed and fear by tricking them into what I call “Easy-Money-Traps”.

As a savvy trader, you need to know how to spot and avoid these scams, before you fall victim to one of them.

I’m going to kick you off with 15 of the most common trading scams you may find nowadays.     

SCAM #1: 
Flaunting money and posing in flashy cars

WARNING: When you see an advert with a fake ‘guru’ posing in a Lamborghini  holding stacks of cash, this manipulates people into thinking they’re rich. 

REALITY: Most times the cash notes are fake and worthless, which is prop money that is usually used in movies.It’s also been proven that 90% of these companies or individuals usually rent the car, borrow it from their rich friend or they take selfies in front of a stranger’s car.

WHAT TO DO: Don’t believe everything you see online.

Scam #2:
They chase after your contact number

WARNING: When a fake “guru” begs for your contact number and persuades you to buy a trading course or ticket to their seminar.

The more aggressive they are trying to get your money, means that their primary income is mostly likely from what they’re trying to sell rather than the money they make when trading.

REALITY:  A true trader with a product or service to offer, will not pester you, sound desperate and bully you with tons of marketing and promises. Their main goals are to offer you value, help and develop a relationship over time. 

WHAT TO DO: Never share your contact number just to “Learn More”, “Book A Free Consultation” or “Check Out” information on what the product is about. You will have marketers call you on a weekly basis trying to suck you into buying their products.


Scam #3:
There is NO background information 

WARNING: When a scam artist has little to no background or legal information.

Whether it’s a trader, broker, money manager or an educator – Never work with anyone who doesn’t have the following: 

• A website

• A proven track record (at least 5 years)

• Valuable content

• An “About Us” page (To learn more about them)

• Contact information

• Customer reviews and testimonials (Ask people!)

• A company registration number

• Tax registration details• Financial regulation

• A website that isn’t secured (When it starts with HTTP and not HTTPS)

REALITY: Most times these non-regulated individuals will try their luck to get you to deposit money into their account and then will disappear.

WHAT TO DO: Always do a full check-up on the person or company through Google, Facebook, websites and reviews and take notes with the bullet points above to see if the person or company is licensed, legit and regulated by independent organisations. 

Scam #4:
You can’t withdraw your money 

WARNING: Your broker or money maker, doesn’t allow you or limits your ability to withdraw funds or profits.

Whenever there are delays to withdraw your money, chances are you’re dealing with illegitimate trading companies. It should never take more than a few days for your money to be returned…

WHAT TO DO: Don’t invest a single cent more into the company, until you have received your funds. Use your rights and speak to a lawyer about your options, in order to find a way to get your money back.

NOTE: This does not apply to fixed-term securities such as, hedge funds, bonds, retirement funds with periodic redemption rights and other constraints.  

Scam #5: 
Failure to prove their BOGUS trading results

WARNING: When you see someone bragging about their winning trades or money they made for the day and how they can help you – but not willing to prove their results.

Watch out with Facebook and Instagram posts on traders posting fake trading results on Telegram, MyFxBook, WhatsApp and other groups.

REALITY: If they are not willing to prove their results, chances are they have been Photoshopped and are only trading with a demo account.Also you’ll see them posting their gains and winnings only and never their losses. This is a big red-flag for me which screams out – SCAM!

WHAT TO DO: Avoid any person who is not willing to share their broker statements or trading results which have been verified by a reputable and licensed firm.

Scam #6:
When they urge you to buy immediately

WARNING: When someone tries one of their high-pressure sales techniques to get you to invest or buy a product or service on the spot.

If ever you get one of those sleazy salesperson’s try to intimidate you, make you feel stupid for not making a decision – warnings bells should ring.

Many con artists, will pressure you with limited time offers or tell you to buy on the phone or you’ll lose the deal.

REALITY: A legit and ethical company will never create such urgency. They will in fact, want you to do your own research, consider your options and take your time to see if their product or service offered will benefit you or not.

They will NEVER force you to buy anything on the spot.

WHAT TO DO: Do your own research before you make a decision, and make sure you leave those high-pressure salesmen charlatans. 


Scam #7:
You hear bad investment advice or too-good-to-be-true deals 

WARNING: When you hear bogus advice or too-good-to-be-true statements from an individual or company that is contrary to anything you’ve ever been told.

As soon as you hear any of these messages, they are most likely scams: 

• “You can put your life savings into our brokerage firm.”

• “Follow our +80% win rate trading system.”

• “Do you want GUARANTEED returns?”

• “Take out a loan and invest with us.”

• “You’ll bank over 10% a month.”

• “We don’t use stop losses.”

• “100% accurate signals.”

• “Get rich quickly.”

• “Easy money.” 

WHAT TO DO: Don’t run away just yet. Do the full check up on the company and with their track record and then decide for yourself.

Most times it’s just the marketing agency, rather than the actual trader, who’s trying to hype up the copy through their copywriting, Click Funnels, Value Ladders etc… 


Scam #8:
They ask for your personal information

WARNING: When someone asks you for unnecessary personal information to make a transaction.

There are salesperson’s out there that will ask you for a bunch of unnecessary personal information including: 

• Bank card details

• Facebook account details

• Phone number

• Income per month

• Trading account password

• Home address

REALITY: If you’re looking to invest in a trading product or service or open an account with an institution, then no trusted and legit company will ever ask for the above details.  

WHAT TO DO: Never give any details to an individual or company that you don’t trust. You can also ask for their Terms & Conditions and Privacy Policy statements, to read each detail of their security and privacy matters. 


Scam #9: 
You get a call from a stranger

WARNING: You may get an unexpected and unsolicited local or international phone call “cold call”, email, letter or personal visit from a stranger offering you a deal.

REALITY: These are most times marketers or customer services trying to sell you something, in order to make a sale.

WHAT TO DO: Kindly tell them to remove your number off their data-base and that you will do your own research and will call them back if you are interested in what they have to offer. 

Scam #9: 
Watch out for bad wording

WARNING: When the company or individual is packed with bad wording.

Bad wording includes: 

• Misspellings

• Incorrect dates (Look at the footer of a website where it says ©)

• Badly written content

• Unprofessional content i.e. emoticons, !!!, ??? and swearing

• Typos everywhere

• URL website has spelling mistakes e.g. (Foerxtrading.com)

WHAT TO DO: This should be your judgement…

NOTE: I personally am sceptical whenever I see any of the above, even though I may make a typo or grammar mistake with my own content every now and then. 

Scam #10: 
The never-ending Facebook scams 

WARNING: When you see posts that offer you free signals, tools, get rich quick messages or advertising ploys that direct you to deposit money.

You’ll see countless scams on a daily basis in Facebook groups and pages that will direct you away from them by sending messages such as: 

• “Inbox me”

• “Ask how”

• “Join our Telegram”

• “100% accurate signals”

• “Reply add”

• “Do you know you can make XXX amount of money”

• “Click this link”

• “Ask for more info”

• “Daily free signals”

• “Daily 200 – 500 pips”

• “Guaranteed results”

• “No scam”

WHAT TO DO: Do your thorough research and follow the above #3 step before making your decision.


#11: Trading software, robot or EA that guarantees a +70% win rate system.
#12: Fake Facebook profile name, picture with dodgy friends.
#13: Any product or service that promises “Zero-Risk”.
#14: Any notion that promises you riches quickly and tells you to trust them or take their word for it. 

Scam #15: ?


Trade well,

Timon Rossolimos

Founder, MATI Trader

PS: If you found this article helpful let me know by emailing timon@timonandmati.com or click here to let us know in our MATI Trader chat room.