Scam Alert: South Africa's Worst Forex Brokers

With the rising popularity of Forex trading among investors, more and more brokers are enticing newcomers into the market. We've compiled a list of the 27 Worst Forex Brokers to stay away from at all costs. The Forex trading industry has gone a long way in recent years, and many brokers have already earned a solid and favorable image; nevertheless, there is another side to the story. There are a number of untrustworthy Forex brokers on the market that traders should be aware of and avoid at all costs.

UFX (Uniform Foreign Exchange) Market

Users have submitted a slew of bad reviews and concerns about UFX Market and UFX Bank. Because of its broad negative reputation, the Forex Peace Army has banned the firm for publishing fraudulent client ratings on many websites. To mention a few abnormalities, the firm is known to utilize standard strategies to defraud its traders: the trading manager persuades consumers to deposit more and more money in their accounts, while requests for cash withdrawals are never completed.

Traders have no method of contacting customer service, and UFX advises them to engage in riskier transactions that might result in losses. When a trader wants to shut their account, they are encouraged to do a “final transaction,” which results in a massive loss and completely wipes away the trader's cash.

Tradorax

Tradorax has got a number of significant complaints and has been deemed a fraud by the FPA Traders Court after receiving four guilty votes. Tradorax has a history of freezing accounts and preventing customers from withdrawing payments; one senior lost £60,000 on the site and was unable to withdraw the funds. Traders will come across several examples of this organization refusing to pay out and skimming account money.

Tradorax also conducts business without the user's authorization and has been accused of fraudulently billing credit cards. Tradorax is also renowned for persuading customers to deposit additional money, which the platform then freezes and steals. Traders should never deposit money with Tradorax and should avoid interacting with the company entirely.

Trade-24

When it comes to Forex Brokers, Trade-24 has taken “Scam” to a whole new level. Regular fund freezing, near-impossible withdrawals, and account balance theft, plus forgery claims on top of it all! On its website, Trade-24 claims to be operating under an IFSC license, but this is false, and the IFSC of Belize has posted a notification confirming that no license was provided to them.

Panamoney

Enormous-Yield Investment Programs promise traders high returns that appear to be too good to be true – and they are. The Financial Industry Regulatory Authority (FINRA) issued a warning about the scams in 2010, referring to the operators as “con artists.”

Panamoney began by paying out returns, but then went out of business and vanished. Several people had large sums of money in their accounts that they couldn't access, and the website was also taken down. Panamoney has also been accused of withholding funds from accounts and forfeiting all earnings in the case of bogus 'early fund withdrawal' requests that were never made by users. On the site, investors have been known to lose as much as $160,000.

Furthermore, Panamoney has the ability to close a trader's account at any moment, and they will take all of an investor's funds with them. Forex Peace Army has Panamoney on its blacklist and advises against investing in HYIPs.