The forex industry is full of fake EAs, manipulated results, and unregulated brokers designed to take your money. After 18 years and 28,000+ customers, we've seen every trick in the book. Here's how to protect yourself.
$75B+
Lost to forex & crypto scams since 2019
90%+
Of EAs on MQL5 are unprofitable long-term
300+
Fake brokers flagged by regulators each year
18 yrs
Our experience spotting scams in this industry
Eight Scams Every Forex Trader Must Know
These are the most common scams we see our customers encounter. Each one includes the red flags to watch for and how to verify whether something is legitimate.
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1. Fake Expert Advisors (EAs)
The most common scam in automated forex trading Critical Risk
This is the scam we see most often. A seller shows incredible backtest results — 500% returns, zero drawdown, perfect equity curves — and charges $300–2,000 for an EA that falls apart on a live account within weeks. The results were either curve-fitted to historical data, run on a demo account with unrealistic conditions, or simply fabricated in a strategy tester with optimised parameters that will never repeat in live markets.
Some sellers go further: they show screenshots of profitable MT4/MT5 terminals that are actually edited images or demo accounts with inflated balances. Others use affiliate-stuffed "review" sites that give five-star ratings to every EA regardless of actual performance.
Red Flags
Backtest results only — no verified live account
"100% win rate" or "zero drawdown" claims
Screenshots instead of linked, verified results
No MyFXBook, FXBlue, or MQL5 signals link
Seller has no website, only a Telegram channel
Unrealistic monthly returns (30%+ consistently)
How to Verify
Demand a MyFXBook link — check it's a LIVE account, not demo
Look for "Trading Privileges Verified" on MyFXBook
Check the account age — anything under 6 months is meaningless
Look at the drawdown, not just the profit
Google the EA name + "scam" or "review"
Ask the seller for their worst losing month — honest sellers will tell you
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2. Fake or Manipulated MyFXBook Results
Even "verified" results can be gamed Critical Risk
MyFXBook is the gold standard for result verification — but scammers have found ways to manipulate it. The most common trick is running multiple demo accounts simultaneously with opposing strategies, then only publishing the one that happened to win. Others deposit into a live account, run an EA until it shows a profit, immediately verify it on MyFXBook, then delete the account when it inevitably blows up.
Some sellers also exploit MyFXBook's verification system by running a real account with tiny lot sizes and manual intervention to create a "verified" track record, then sell an EA that trades completely differently in practice.
There's an even deeper problem most people don't know about: certain brokers actually allow you to manipulate your own trade history. Brokers like Weltrade and OnFin let account holders edit or delete trades from their history — meaning a seller can remove every losing trade, then connect to MyFXBook and show a "verified" account with a perfect record. MyFXBook can only verify what the broker reports — if the broker itself allows the data to be altered, the verification is worthless. This is why you should also check which broker the MyFXBook account is connected to.
Red Flags
MyFXBook account is set to "demo" (check the account type)
Very short track record (under 6 months)
Only one account shown — could be the survivor of many
Deposits added mid-way to mask drawdowns
Extremely small lot sizes that don't match claimed returns
Trading Privileges NOT verified
Account connected to a broker known to allow trade history editing (e.g. Weltrade, OnFin)
How to Verify
Check for "Trading Privileges Verified" — this confirms the broker link is real
Check account type: must say "Real" not "Demo"
Look at the "Deposits" tab for suspicious mid-month top-ups
Click through to individual trades — check for manual interventions
Compare lot sizes to balance — realistic sizing shows genuine trading
Check which broker the account uses — avoid results from brokers that allow trade history manipulation
Ask the seller for access to the full trade history
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3. Unregulated or Fake Brokers
They let you deposit — they don't let you withdraw Critical Risk
Fake brokers are designed to look legitimate. They have professional websites, responsive live chat, and will even process your first small withdrawal to build trust. Then when you deposit serious money or try to withdraw larger profits, they block you — demanding "tax payments", "verification fees", or "insurance deposits" before releasing your funds. These fees are endless, and your money is already gone.
Even some "regulated" brokers route clients to offshore entities with weak oversight, meaning your funds have minimal protection if the broker collapses or refuses to pay. See our broker reviews for brokers we've personally tested with real withdrawals.
Red Flags
No regulation, or regulation from an obscure island you've never heard of
Broker promises "guaranteed returns" or "no-risk trading"
They call you repeatedly after you sign up, pushing you to deposit more
Withdrawal requests are delayed, denied, or subject to new "fees"
Website was registered recently (check WHOIS)
Bonus offers with impossible withdrawal conditions
How to Verify
Check the regulator's website directly — search their register for the broker's licence number
Look for ASIC, FCA, CySEC, or BaFin regulation — these are Tier-1
Search the broker name on the FCA Warning List
Test with a small withdrawal BEFORE depositing serious money
Check Trustpilot and ForexPeaceArmy for withdrawal complaints
Verify which entity your account is registered with — onshore vs offshore
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4. Fake Signal Groups (Telegram & Discord)
Screenshots of wins, silence about losses High Risk
Forex signal scams have exploded on Telegram and Discord. The pattern is always the same: a "guru" posts screenshots of winning trades, claims 90%+ win rates, and charges $50–500/month for "VIP signals". What they don't show you is the losing trades they delete, the screenshots they edit, and the fact that their "live results" are often paper trades or cherry-picked from a demo account.
Many signal groups are also fronts for affiliate schemes — the real money is made from broker referral commissions when followers sign up through their link, not from actual trading. The "guru" profits whether you win or lose.
Red Flags
Win rates claimed above 80% — sustained win rates this high are extremely rare
Results shown as screenshots, not verified live accounts
Admin deletes losing trades or negative comments from the channel
Requires you to sign up with a specific broker (affiliate link)
Lifestyle photos — Lamborghinis, Dubai penthouses, stacks of cash
Pressure tactics: "Only 10 VIP spots left!"
How to Verify
Ask for a MyFXBook or FXBlue verified link — not screenshots
Monitor the free channel for a month before paying — track every call yourself
Check if losing trades are ever posted or deleted
Ask other members privately if they're actually profitable
Search the admin's name + "scam" on Google and Reddit
If they require a specific broker, assume they're earning affiliate commissions from you
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5. Managed Account & PAMM Ponzi Schemes
"Give us your money and we'll trade it for you" Critical Risk
Someone offers to trade your money for you — promising 10–30% monthly returns with "professional traders" managing your capital. Early investors get paid from new investors' deposits (classic Ponzi structure), creating the illusion of genuine returns. When new deposits slow down, the scheme collapses and your money disappears.
Some of these operations use legitimate-sounding names and even register companies. They may show you "live" account access — but the platform is often fake or the numbers are fabricated. Never give trading access or send money to someone who promises guaranteed returns on managed accounts.
Red Flags
"Guaranteed" monthly returns of 10%+ — this doesn't exist in legitimate trading
You're asked to deposit to an account you don't control
Returns are suspiciously consistent month after month
They recruit aggressively — referral bonuses, MLM structure
No regulation as an investment manager or fund
Withdrawal delays or excuses: "the money is in trades right now"
How to Verify
Check if they're registered with the FCA, SEC, or your local regulator as an investment manager
Legitimate PAMM accounts are hosted by the broker — you should see real trades in your own MT4/MT5
Never deposit to a personal bank account or crypto wallet
Be deeply suspicious of any "guaranteed" return — even 5%/month is extraordinary
Google the company name + "scam" + "complaints"
If it sounds too good to be true, it is. No exceptions.
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6. Prop Firm Scams
Pay the challenge fee, pass — then never get paid High Risk
The prop firm model has attracted scammers who set up "evaluation" programmes, collect challenge fees from thousands of traders, and then either make the rules impossible to pass, change the rules after you pass, or simply refuse to pay out profits. Some firms don't even place real trades — they operate entirely on simulated platforms where your trades never reach the market.
Legitimate prop firms exist, but the space is largely unregulated, and multiple well-known firms have collapsed in recent years, taking traders' fees and unpaid profits with them.
Red Flags
Extremely cheap challenge fees — may indicate a volume-based scam
No clear information about who owns or runs the company
Rules that change after purchase or during the challenge
Payout delays exceeding 30 days
No verifiable payout proof from real traders
Company was incorporated very recently
How to Verify
Search for payout proof on Trustpilot, Reddit, and ForexFactory
Check the company's registration — how long have they existed?
Look for consistent payout complaints — one or two is normal, dozens is a pattern
Stick to established firms with years of payout history
Read the full terms BEFORE purchasing — look for hidden rule changes
Ask in trading forums if anyone has actually received payouts
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7. Fake Reviews & Testimonials
Five stars for sale — $5 each on Fiverr High Risk
Fake reviews are everywhere in the forex industry. Sellers buy Trustpilot reviews, create fake YouTube "testimonials", pay for MQL5 five-star ratings, and build entire review websites that exist solely to promote their own products. The "reviews" are either written by the seller themselves, purchased from freelancers, or posted by affiliates who earn commission for every sale they drive.
Broker review sites are equally compromised — most rank brokers by who pays the highest affiliate commission, not by actual trading experience. This is exactly why our broker reviews carry zero affiliate links.
Red Flags
All reviews are 5 stars with generic, vague praise
Reviews posted in clusters — 20 reviews in one week, then silence
Reviewer accounts have only ever reviewed one product
Video testimonials with actors or stock footage
"Review" websites that only review products from one seller
No negative reviews at all — every real product has some criticism
How to Verify
Check reviewer profiles — real customers review multiple different products
Look at the date distribution — organic reviews arrive steadily over time
Search ForexPeaceArmy and Reddit for independent opinions
Cross-reference reviews across multiple platforms
Be suspicious of review sites with affiliate links to every product they "review"
Look for detailed, specific reviews that mention real trading experience
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8. "Free EA" Malware & Pirated Software Traps
The EA is free — the damage to your account isn't High Risk
Websites offering "free downloads" of premium EAs are almost always distributing modified files. The EA might work — but embedded in the code is a hidden function that sends your broker login credentials to the attacker, places unauthorised trades, or modifies your trade parameters to benefit the scammer's affiliate or copy-trading account.
Some pirated EAs also contain DLL files with genuine malware — keyloggers, remote access trojans, or crypto miners that run silently on your VPS or computer. If you wouldn't download pirated software from a random website for your banking computer, don't do it for your trading terminal either.
Red Flags
Website offers premium EAs for free or at extreme discounts from unknown sources
Download requires disabling your antivirus
EA includes DLL files (can contain hidden executables)
File is hosted on a file-sharing site with no official connection to the developer
EA requests broker account credentials during setup
Your antivirus flags the file but the website says "ignore it"
How to Verify
Only download EAs from the official developer, MQL5 marketplace, or authorised resellers
Never disable your antivirus to install an EA
Check the .ex4/.ex5 file — legitimate EAs don't need external DLL files for basic operation
Use a separate VPS for trading — never your personal computer
Change your broker password immediately if you've installed a suspicious EA
If the price seems too good to be true compared to the developer's own site, it probably is
🛡 Quick-Reference Scam Checklist
Before you hand over money to any forex product, broker, or service, run through this list. If more than two items apply — walk away.
Promises guaranteed returns or "risk-free" trading
No verified live trading results (MyFXBook, FXBlue)
Results shown only as screenshots, not verifiable links
Requires you to use a specific broker (affiliate scheme)
No clear company information, address, or real names
Aggressive recruitment with referral bonuses (MLM structure)
Reviews are all 5 stars with vague, generic praise
EA requires DLL files or asks you to disable antivirus
"Free download" of a premium EA from an unofficial site
Withdrawal delays, new fees, or changing terms after you've paid
Why CheaperForex Published This Guide
We sell Expert Advisors. That means every forex scam out there directly hurts our business — because when a trader gets burned by a fake EA or a dishonest broker, they lose trust in the entire industry, including legitimate sellers like us.
We've spent 18 years building a business based on verified results, honest descriptions, and transparent pricing. We show MyFXBook-verified live results for our top products. We don't promise guaranteed returns. We don't use countdown timers or fake scarcity. And our broker reviews carry zero affiliate links — because recommending the best broker for our customers' EAs is more valuable than earning a referral commission.
This guide exists because informed traders make better decisions — and better decisions are good for everyone in this industry who operates honestly.
What to Do If You've Been Scammed
If you've been scammed by a broker
File a complaint with the relevant regulator. For UK-based brokers, contact the FCA. For Australian brokers, contact ASIC. For EU brokers, contact the relevant national regulator (CySEC for Cyprus-registered firms). If the broker is unregulated, your recovery options are limited — which is why regulation matters.
If you've installed suspicious software
Change your broker password immediately. Check your account for unauthorised trades. Run a full malware scan on your VPS or computer. Consider reformatting your VPS entirely if you installed a DLL-based EA from an untrusted source.
If you've lost money to a managed account or Ponzi scheme
Report it to your local police and financial regulator. If you paid by credit card, file a chargeback with your bank. Document everything — screenshots, messages, transaction records. Be wary of "recovery" companies that promise to get your money back for an upfront fee — many of these are scams themselves, targeting people who've already been scammed.
More Free Trading Resources
Use our free forex calculators to calculate the correct lot size, pip value, and risk before trading. Test your knowledge with our free forex quizzes — 79 questions across six categories. Explore our forex glossary for definitions of every trading term. And read our broker reviews — nine brokers rated honestly with zero affiliate links.
Frequently Asked Questions
How can I tell if a forex EA is a scam?
The single most reliable test is whether the seller can provide a MyFXBook or FXBlue link to a verified LIVE account — not a demo, not a screenshot, not a backtest. Check that "Trading Privileges Verified" is enabled, the account is at least 6 months old, and the drawdown is realistic (anything claiming zero drawdown is almost certainly fake). If the seller can't or won't provide verified live results, don't buy.
Is CheaperForex a scam?
No. CheaperForex has been operating since 2019, has served 28,000+ customers, and maintains a 4.5-star Trustpilot rating. We provide MyFXBook-verified results for our top EAs, offer customer support, and don't make unrealistic promises. We don't guarantee profits — because no one can — but we do guarantee that our products are exactly what we describe them to be.
How do I check if a forex broker is regulated?
Go directly to the regulator's website and search their public register. For FCA-regulated brokers, use the FCA Register at register.fca.org.uk. For ASIC, search the ASIC Professional Register. For CySEC, check their Entity Search. Never trust a licence number displayed on the broker's own website without verifying it against the regulator's database — scam brokers frequently display fake or stolen licence numbers.
Are forex signal groups worth paying for?
The vast majority are not. Most signal groups profit from broker affiliate commissions rather than from actual trading. If a signal provider can't show verified live results — not screenshots, not edited images — they're not worth your money. The few legitimate signal providers that exist will always have verifiable, long-term track records. Before paying, monitor their free channel for at least one month and track every call yourself.
Can I get my money back if I've been scammed?
It depends on how you paid. Credit card payments can sometimes be recovered through chargebacks if filed within 120 days. Bank transfers are harder to reverse. Crypto payments are almost always unrecoverable. Your best course of action is to report the scam to your local financial regulator and police, file a chargeback if applicable, and document everything. Be cautious of "fund recovery" companies — many are secondary scams targeting existing victims.
Why do so many forex EAs fail?
Most EAs fail because they're curve-fitted — optimised to perform perfectly on historical data but unable to adapt to changing market conditions. Others use dangerous strategies like martingale (doubling down on losses) without proper risk management. A legitimate EA will have realistic drawdown, won't promise guaranteed returns, and will show both winning AND losing periods in its track record. Consistent 30%+ monthly returns with no significant drawdowns simply don't exist in real trading.
What makes a forex product legitimate versus a scam?
Legitimate products have verified live results (not just backtests), transparent pricing, honest descriptions that acknowledge risk, a real company or person behind them, and customer support. Scam products rely on fabricated results, fake urgency, unrealistic promises, anonymous sellers, and lifestyle marketing. If a seller is more focused on showing you their Lamborghini than their verified trading results, that tells you everything you need to know.
