27 Worst Fake Forex Brokers List in South Africa

In this article, we list the 27 Worst and Fake Forex Brokers to avoid at all costs. Beware at all costs!!!

With the growing interest of investors in Forex and crypto trading, more and more unregulated brokers are luring beginner traders into this type of investment.

10 Worst Rated Forex Brokers in South Africa (Updated List 2022)

1. UFX Market
2. Tradorax
3. Trade-24
4. Panamoney
5. NoaFX
6. NetoTrade
7. MaxCFD
8. HFX
9. Option.fm
10. PorterFinance

The Forex trading market has come a long way over the last couple of years and many brokers have already established a strong and positive reputation but, there is also another side of the coin here.

There are multiple unreliable Fake and blacklisted Forex brokers in the market that traders need to be aware of and avoid by all means.

These scam brokers have been reported for:

1. Fake Broker Accounts
2. Fake Trading Apps
3. and even Fake Traders advertising these platforms.

Here is an overview of the 27 Worst Fake and Forex (SCAM) Brokers to Stay Away from.

 

UFX Market

 

UFX Market and UFX Bank has a multitude of negative reviews and complaints left by users to their name. The company is known for posting false client reviews in different websites and the Forex Peace Army has blacklisted this broker because of its widespread bad reputation.  The company is known to adopt common tactics to cheat its traders, the trading manager persuades users to deposit more and more money in their accounts with the requests for fund withdrawals never being processed – to name but a few irregularities.

 

Traders have no way to reach out to their customer support and UFX suggests risky trades to traders which will result in potential losses. When a trader in turn tries to close their account, they are subsequently persuaded into a “last deal” which results in a huge loss and wipes out the trader’s funds entirely.

 

 

Tradorax

 

Tradorax carries some serious complaints and has received 4 guilty votes in the FPA Traders Court which has led to it being declared a scam.  Tradorax is known to freeze accounts and block users from withdrawing their funds and a pensioner has lost £60,000 on the platform and he was not allowed to withdraw the money. Traders will find many similar cases where this company has refused pay-outs and stealing account balances.

 

Tradorax also makes deals without the permission of the user and has been known to fraudulently charging credit cards. Tradorax is also known for encouraging users to deposit more money which is ultimately frozen and stolen by the platform and traders should never deposit any money with Tradorax and refrain in full from dealing with this platform.

 

Trade-24

 

Trade-24 has taken “Scam” to a whole new level when it comes to Forex Brokers.  Regular funds freezing, almost impossible to withdraw funds and stealing account balances PLUS the allegations of forgery on top of it all!  Trade-24 states on their website that it was operating under a license from IFSC but this was completely untrue and IFSC of Belize has put up a notice which confirms that they had not issued any license to them.

 

Panamoney

 

High-Yield Investment Programs which promises traders high returns which seems too good to be true – turns out they are.  The Financial Industry Regulatory Authority (FINRA) has issued a warning back in 2010 against the schemes, calling the operators ‘con artists’.

Panamoney started by paying out returns but later closed down and just vanished from the scene. Multiple People had huge amounts of funds still in their accounts which could no longer be accessed and the website was also shut down.  Panamoney has also been known for deducting amounts from accounts and forfeited all profits for false ‘early fund withdrawal’ requests which were never actually made by users. Investors have been known to lose as much as $160,000 on the platform.

 

What’s more, Panamoney can block a traders account just about at any time, and they will take all of an investor’s money along with it. Panamoney is blacklisted by Forex Peace Army and cautions against investing in HYIPs.

 

NoaFX

 

With NoaFX, traders will start off just fine by trading and accumulate a balance in their account but the problems and red flags start the moment they want to withdraw funds.  Traders will have to send hundreds of emails to get a response from the company – if lucky, and even these responses are generic.  Users have waited for up to months and have made several communications but all attempts are in vain! Traders have never gotten their investments back.

 

The company even claims to be registered in New Zealand – an utter lie confirmed by New Zealand’s Financial Markets Authority.  Forex Peace Army acknowledges that this broker is indeed a scam and currently there are 3 FPA Traders Court guilty vote against the company.

 

 

NetoTrade

 

NetoTrade is at the top of the list when it comes to receiving warnings from various regulatory bodies – globally! The National Securities Market Commission in Spain has issued a warning against the use of this company as it does not carry a license and the Swiss financial regulator FINMA has included it in its public Warning List.  The Forex Peace Army has confirmed that this Broker is indeed a scam and there are 3 Traders Court Guilty Verdicts on FPA.

 

MaxCFD

 

MaxCFD has been given Sam status by the Forex Peace Army following a warning by the Australian regulatory body. Traders are advised to withdraw any money that they may have invested in their website as the company is involved in many fraudulent practices including depositing bonuses in user accounts without permission. Said bonuses will come with terms and conditions which ultimately freeze or counterfeit the whole account balance.

 

HFX

 

Honestly, Traders do not want to be involved with anything that has to do with HFX. HFX is a case of confirmed scam and has been acknowledged as such by Forex Peace Army.  HFX is also listed by Financial Services Authority as an unauthorized firm involved in fraudulent practices and traders are suggested to be extra cautious or prevent any trading with them.

 

The HFX platform is known to use user funds to make trades without taking prior permission of the owner which in turn causes huge losses and completely deplete the funds accumulated in the account.  Traders can be sure that they will encounter difficulties in withdrawing funds and there have been cases where the platform wrongly accused users of unethical trading and locked their accounts.

 

Option.fm

 

Option.fm has a long-standing history of stealing investors’ money and blocking their withdrawals. Traders can find numerous cases of scams detailed by victims on Forex Peace Army and the company has also been related to multiple others scams. A user of the Option.fm received an email from the company where the signature was of an officer from Banc De Binary and the Forex Peace Army contacted both companies for feedback on the issue but has not received any response.

The company has also been involved in illegitimate trading where big losses have wiped out entire account balances.

 

 

PorterFinance

 

PorterFinance is a part of the Greymountain Management group which has attracted multiple Court Verdicts from Forex Peace Army and all associated companies of Greymountain group has been labeled as scams by FPA.  The Australian Securities and Exchange Commission has warned investors from dealing with this company and like with many other unlicensed companies, PorterFinance also operates out of Israel.

 

PorterFinance conducts illegitimate activities like trading Forex over weekends and traders will not be able to withdraw their funds even after meeting all the requirements set.

 

Bexplus

 

Bexplus cannot be trusted.  Bexplus features competitive market indicators like 1:100 leverage and no spreads, as well as initial bonuses, quick transaction methods, and a simplistic website but Bexplus requires very heavy commitments from its customers in the form of $800 in minimum trading volume. The SVGFSA licensing is completely ineffective and should be discarded right away.

 

ALB

 

Although the broker manages to impress with the transparency of displaying legal documentation, the conditions on offer to their traders are quite lacklustre even on the CFD level.  The deposits are non-existent and the spreads simply don’t make it worth a trader’s time to trade on this platform. If you’re looking for Forex options, better go for a Forex broker instead. The broker is legit in a legal sense, but not legit in a profit sense.

 

 

TradInvestor

 

TradInvestor is not the best choice for any trader – beginner nor veteran.  The scam becomes apparent by the lack of license, but paired up with terrible trading conditions alongside withdrawal and deposit issues, fraudulent activities are apparent.

 

RFXT

 

With some impressive and tempting trading conditions, as well as seemingly sound regulation, the RFXT broker might seem a creditworthy company that a trader can trust – but this is only in order to manipulate customers into its platform and then endanger their financial stability.  The company is regulated by Australia’s, Cyprus’, and Lebanon’s financial regulating bodies, but these licenses doesn’t mean much and the company can effectively conduct its brokerage services and expect no legal oversight from these countries whatsoever.

 

MRG FX

 

This broker boasts flashy trading conditions but it seems that they use this to lure in as many customers as possible while not really thinking about the implications.  The website is unprofessional and amateurish and finding crucial information takes a lot of time and research.

 

The regulation is basically just a piece of paper with New Zealand mentioned in it and in effect, the company can do whatever it wants and not be charged for its actions.

 

MYteamFX

 

As things stand, MYteamFX is definitely not the best choice regardless. The broker has clearly been untruthful about both their CySEC and FSC licenses.  Traders need to deposit the maximum $10,000 but even then, it pales in comparison to already existing options.  The brokerage is not worth it and definitely not trustworthy.

 

 

AM Broker

 

With flashy numbers and a well-groomed website coupled with some suspicious regulatory claims it isn’t advised that traders have any financial connection with this broker. Traders may be overwhelmed by the lucrative leverages and bonus rates, or lower spreads, but traders should be aware that this is what scammers do.

 

EagleFX

 

EagleFX is definitely not worth it because they have massive issues with regulatory compliance and their way of offering services to US clients are outright illegal.  The overall conclusion is that EagleFX is definitely a scam and trading with them is not recommended.

 

CFD

 

CFD World is not recommended even though they hold a CySEC license. Even if they aren’t 100% fraudulent, their trading conditions don’t make them enticing in any way.

 

 

HWFX

 

In terms of trading conditions and overall trader benefits, HFFX fails to rival even the smallest and newest Forex brokerages on the EU market.  Simply considering the fees traders have to pay just for registering on the company’s platform makes HWFX one of the least affordable options and with conditions like these, plus wide spreads and low leverage there is very little chance traders can walk away from the broker in a yearly profit margin. Not recommend.

 

Discount FX

 

When it comes to Discount FX it is very difficult to distinguish it from being a scam or being legit. The CySEC license does provide some kind of lawful background but looking at the issues when it comes to withdrawals and the BaFin license, the Discount FX scam still manages to emerge one way or another.

 

Doo Prime

 

This brokerage is indeed a scam regardless of their affiliation with a Holdings Group in Hong Kong as they have blatantly lied about their awards and don’t hold a legitimate license in the country where they are registered in.

 

TNFX

 

TNFX is one of the most obvious scam brokerages and traders must make sure to stay away from the brokerage as far as possible, as they’re so obviously trying to scam specifically beginners.

 

 

Vestle

 

Traders do not need to go into too deep a dive into the history of this company, or into their services, in order to figure out that the company is a fraud and a lie, created in order to lure innocent traders into depositing their cash and then blocking them from ever getting anything out.

 

SinoSoft FX

 

When it comes to SinoSoft FX not even the information on the website can be trusted, let alone SinoSoft FX itself. The broker’s website is chock and block with misleading and false information and traders should keep their funds away from the broker. SinoSoft FX does not carry a license and is operating without any authorization. SinoSoft FX cannot be trusted.

 

And last but definitely not least –

 

Coinfinex

 

Coinfinex is not a broker with which an investor should trade with. There are multiple reasons that makes this broker a scam and is leading some sort of fraudulent scheme. Coindex tries to get benefits from the lucrative market of cryptocurrency trading with no regard for its customers. Coinfex is not regulated but claims to be and also tries to mislead customers into thinking that the broker is a cryptocurrency exchange.  Coinfinex obviously hides information about the company from its clients and the trading conditions are not fully communicated on the website

 

The greatest problem with scam FX brokers is that they are getting better and more advance in what they are doing. The company might be part of the worst and fake Forex brokers list, but some traders will fall into their traps because these brokers are professionally creating the illusion of legitimacy in traders’ minds.   By creating or hiring someone to create a good-looking website and indicating that they have a reputable license from a certain regulatory organization will be enough to trick any beginner Forex traders – and this is not at all the traders’ fault.

 

 

So, how does a trader identify and avoid the worst Forex brokerages?

 

Check for regulations

 

This is undeniably the first step. By simply doing this traders may better understand if the broker is reliable or if they should stay away from it. For example, if a trader sees that the broker is regulated by NFA, FSA, CFTC, they will know as trustworthy, as those are one of the strictest regulatory bodies.

 

Be Educated about Forex trading in general

 

Before a trader even starts trading and choosing the FX broker they want to possibly choose, they need to understand how Forex trading works. What this means is that traders will need to clearly realize that they simply cannot and for that fact, will not earn millions in a single day. So, when a trader sees that a broker is promising them speedboats and a billionaire lifestyle overnight, they can be confident that it is one of the Forex brokers not to trade with.

 

Don’t trust FX brokers who promise fast returns

 

Just proceeding with the previous topic, traders just starting off in trade should not await the funds to be returned any time soon. Traders should try and avoid brokers that are stating that with them investors will receive their first returns after a week of trading.

 

Don’t fall for aggressive marketing campaigns

 

Whenever a trader sees the stunning promotion banners of the broker online, that is the first trigger for traders to be very cautious and suspicious. When something is truly good, traders will most probably know about it already before seeing ant flashy ads.

 

Don’t choose a broker who suggest trading on the interbank market

 

Massive Red Flag – leave the brokers website and never return again. When the brokerage companies offer traders to trade on the interbank market, there is literally a large flashing banner saying – SCAM! This is not the proper way of trading for individuals and the Interbank market is like a subsidiary of the Forex market that allows the banks or huge financial companies and institutions to exchange different currencies between each other.

 

Don’t buy the stylish design of the worst Forex brokers websites

 

When it comes to picking a broker traders shouldn’t just look at the style of the website. Fancy buttons and nice infographics may not provide any actually valuable information and fail to support the charts or words about the licenses obtained with the real facts.

 

Research!

 

With dozens of review blogs and forums available there are thousands of traders with past experience wanting to share it with others.

 

Final thoughts

 

In summing up how to understand if an FX broker is bad, we would like to revise everything one more time. For beginners who are still not fully comfortable with the whole thing happening on the Forex global market they need to ensure is that they understand the essence of the Forex trading and how it works as it will help traders to avoid the worst Forex trading brokers, but it will also increase their chances of actually earning profit from currency trading.

Sometimes beginner traders will lose their money not because of scammers, but because of their arrogance and attempt to bet against the whole market.

Before giving out all of their personal information to any of the Forex brokers, traders need to carefully consider a number of main points including the background of the company, its creators and the availability of the valid regulation. Traders need to check all of the conditions of trading and funds deposit/withdrawal which is usually indicated in the White Paper of the brokerage.

 

 

Frequently Asked Questions

 

 

How will I know that a forex broker is a fake or scam?

 

Look up a broker’s regulation, incl. checking out their license number. The worst brokers in South Africa promise you fast returns. A definite alarm are those brokers who offer abnormally high cash bonuses. Do your research of a potential broker as thoroughly as possible and educate yourself in forex trading to recognize and avoid scammers.

 

Is profits through automated trading offered by a broker a scam?

 

Automated forex trading can yield profits, but here is no forex brokerage yet who has found a way to generate profits on a consistent basis through automated trading and when you encounter such a broker, it  should be considered one of the worse brokers around.

 

What are the ways that forex brokers scam their clients?

 

Some of those ways that worse brokers scam their clients is by manipulating the bid/ask spreads and by stop hunting. Fortunately many of these old-school scams have been cracked down upon by new rules from Regulatory oversight authorities.

 

Is NoaFX a scam broker?

 

The problem with NoaFX starts when clients want to withdraw their funds.  After sending hundreds of emails to the brokerage and waiting for several months for a reply, they still end up losing their investment.

 

Is Trade 24 a scam broker?

 

Yes, Trade24 has taken forex broker scams to a whole new level. Clients funds are being freezed, making withdrawal virtually impossible. And there are many fraud allegations against them including operating under a license which the IFSC of Belize has confirmed they have never issued.