In a world full of Forex trading hubs, Australia is a leader due to its well-organized and somewhat flexible rules. This makes it a top choice for brokers looking for easier regulations and for traders wanting better trading conditions. However, this doesn’t mean that the Australian Securities and Investments Commission (ASIC) allows any bad behavior from brokerage firms. ASIC makes sure everyone follows the local laws and quickly takes away the licenses of those who don’t. In this article, Traders Union takes a close look at the list of fake Forex brokers in Australia, pointing out the companies that have been found doing fraudulent things. The analysts at TU have investigated the main characteristics of these scam projects and how they try to trap traders in their schemes, adding to the growing problem of Forex trading scams in Australia.
Forex Trading in Australia: A Growing Trend and Its Regulation
Forex, the international currency market, is where traders make money by trading various assets like currency pairs, raw materials, stocks, and indices. In Australia, the number of retail investors is growing every year, making it a hotspot for Forex trading. In fact, according to Finance Magnates, out of about 25 million people living in the country, Australia has the highest percentage of traders per capita. This growing interest is regulated by the Australian Securities and Investments Commission (ASIC), which in 2020-2021, issued 339 new licenses out of 565 applications received. This shows that ASIC is actively regulating the market, ensuring only qualified brokers operate. Traders Union analysts suggest checking the official ASIC website to find information about all licensed companies, their registration date, and controlled domains, to ensure safe trading.
Beware of These Blacklisted Forex Brokers in Australia!
Avoiding financial scams is crucial for safeguarding your capital. One way to do this is by checking the Forex Scammer List, which includes fake brokerage organizations that have deceived many people and continue to do so. Below is a list of scammers, the year they were founded, and the minimum losses incurred by cooperating with them. TU experts have provided a brief overview of these brokerage organizations and revealed the main facts of each scam method. Stay vigilant and protect your capital!
- 10brokers com, 2017, $50
- Arena FX, 2012, $1
- Axis Capital Group, 2020, $250
- Fibonetix, 2018, $250
- FTO Capital, 2016, $250
- KontoFX, 2018, $250
- PrivateFX, 2015, $100
- Trade Ltd, 2018, $200
- UFX, 2007, $100
- AGM Markets, 2011, $250
- BlaFX, 2015, $25
- SJB capital limited, 2020, $250
- KLM Trade, 2010, N/A
Don’t lose your vigilance; save your capital by avoiding these blacklisted brokers.
5 Steps to Verify if a Forex Broker is Legit
The International Forex market is not only a magnet for traders but also for scammers eager to empty your wallet with promises of huge profits, trading ‘assistance,’ and favorable conditions. As Forex scams rise each year, scammers devise new tricks to scam people before posting reviews online. Therefore, before entrusting a broker with your money, a thorough analysis and risk evaluation are essential. Traders Union analysts highlight key factors to consider when choosing a broker:
- Verify regulatory information.
- Check the regulatory authority’s website database.
- Assess the broker’s website.
- Check if the broker guarantees profit.
By following these steps, you can avoid losing your money and find a genuinely worthy financial partner. Remember, a legitimate broker acts as an intermediary between the Forex market and traders and cannot guarantee profits.
To sum up, Australia is a favorite place for Forex trading because of its easy rules and good trading conditions. But, it also has fake brokers. The ASIC works hard to control the market and make sure only good brokers work. However, traders need to be careful and check brokers before giving them their money. TU experts help traders by giving them a list of fake brokers and important things to check before choosing a broker. By being careful and informed, traders can safely and successfully trade in Australia.