There are several ways to recognize and avoid prop trading scams. While legitimate forex prop firms offer a competitive platform to trade bigger, many companies run fraudulent activities to make money. To identify these trading frauds, conduct thorough research and verify a prop firm’s legitimacy. As an aspiring trader, you should also watch out for common indicators that prove fraudulent forex scams. This way, you can safeguard your personal funds – while identifying reputable companies to trade in a competitive environment.
>> A globally recognized prop firm, Funding Traders encourages everyone to stay away from deceitful claims and join the most legitimate companies. With FT, you can utilize flexible and reliable funding solutions to maximize success in forex trading.
Watch out for these signs to avoid common prop firm trading scams.
Unprofessional & Poorly Maintained Website
Consider prop firms with unprofessional & poorly maintained websites as a common forex funding scam. Typically, fraudulent platforms offer a poorly structured website with no transparency and multiple errors. Meanwhile, trusted prop trading companies take enough time to design high-quality, secure, and easy-to-navigate websites – creating a safe platform for their clients. You can also review a firm’s trading policies on its website to identify potential scams. Professional forex funding firms clearly outline policies, terms & conditions, and risk management practices right on their website.
>> Visit Funding Traders online to review our trading policies, funding T&C, and profit-sharing arrangements. As an industry-leading firm, we maintain complete transparency with all our clients.
In some cases, you may encounter prop firms with aesthetically appealing websites running major scams in the FX industry too. Indeed, review a company’s website to avoid a potential stocks prop firm trading scam.
High Upfront Deposits
Prop firms running trading scams may also charge high upfront deposits before offering forex funding. These prop trading scammers often demand huge fees to exploit traders. Typically, you are asked for a higher upfront deposit in exchange for complete access to the firm’s capital. Once you deposit the fees, these scammers are likely to terminate the communication – stealing your hard-earned money.
>> Funding Traders only requires a nominal upfront fee to receive your challenge account. Once you complete the evaluation, you’ll even receive a 100% refund on the initial fee – resulting in a free prop firm-funded account.
- $5K Funded Account – $50
- $10K Funded Account – $100
- $25K Funded Account – $200
- $50K Funded Account – $300
- $100K Funded Account – $550
- $200K Funded Account – $1,150
In addition, you should also watch out for prop firms requesting ongoing account maintenance fees, hidden taxes, and other undisclosed charges. Indeed, evaluate initial challenge fees to recognize and avoid prop trading frauds in forex.
No Support For Live Trading Accounts
Another way to recognize scammers in prop trading is to evaluate support for live trading accounts. Many scammers only provide demo trading accounts – even when you complete the initial evaluation. With these companies, your profits primarily depend on challenge fees charged from other traders. Ultimately, these prop firm scams shut down automatically when new traders stop paying challenge fees.
>> At Funding Traders, all clients receive real live funded accounts to trade forex. Since these funded accounts offer real money, we look forward to working with profitable traders – skilled to maximize overall returns.
To avoid these scams, look for prop firms with real money offering live funded accounts. Definitely, join firms that support real live trading funded to avoid common prop trading scams.
Unrealistic Promises On Returns
In addition, stay away from prop firm scammers promising unrealistic returns on your trades. Be cautious of any currency trading firm guaranteeing higher profit returns without any underlying risk. Typically, scammers utilize these get-rich-quick business models to defraud inexperienced traders. Keep in mind you should never expect a 100% guaranteed return – even with the world’s biggest prop firms.
>> Reach out to our customer service team for professional assistance on all your prop-trading-related queries – including profit potential, scaling plans, and career opportunities.
Additionally, you should also avoid prop firms offering massive funding opportunities without any strict evaluation requirements. Definitely, avoid prop trading scams that promise unrealistically high returns from funded trading.
Unclear Profit Sharing Model
Finally, an unclear profit sharing model is another indicator to recognize potential prop firm funding scams. Scammers may not always provide the required transparency on how they reward a trader’s performance. Without any transparent structure, these fraudsters may even manipulate your trades – turning winning positions into major draw-downs. Of course, you are likely to experience additional hurdles when withdrawing earned profits.
>> A trusted prop firm, Funding Traders offers a clear, structured, and competitive profit sharing model to reward our clients. By default, you are eligible for an 80-20 profit split in your favor. Moreover, seasoned traders looking to earn bigger can also sign up for add-ons to get paid with up to 100% of the earned profit.
Indeed, avoid prop firms with poorly structured profit split models to stay away from online trading scams.
There are several indicators to verify and avoid the biggest prop trading scams. First, carefully review the company’s website to look for quality assets, prop firm test requirements, and clearly highlighted trading policies. You can easily identify scammers when a prop trading company charges unreasonably higher upfront trading fees.
Scammers also fraud clients with demo accounts without any support for real capital. Of course, join a legit prop trading partner with a straightforward competitive profit sharing model and no unrealistic promises. Follow the points above for common indicators to protect yourself from forex funding scams.
