Forex Signal Scams – Stupid Unnecessary Forex Trading Costs

The forex market is enormous and possesses a trading volume of a daily average that is worth more than five trillion dollars. Also, this system is not under tight regulation. This means that it is easy for some forex scams to occur, which tend to make the promise that the trader will earn fast profits via the application of secret trading formulas that are indicated as being based on algorithms along with the implementation of methodologies for trading that are classified as proprietary. Or there may be the presentation of forex robots that conduct trading activities on your behalf.

A signal seller grants the provision of a system that indicates that it will engage in the identification of times that are deemed favorable regarding the buying and selling assets. The system can be presented in a manual form. In this case, the trader must enter information about the trading efforts. On the other hand, the system may be automated for the trade to be conducted when a signal occurs.

What is the Forex signal scam?

Forex signal scams represent prevalent fraudulent activities within online trading communities where sellers offer trading ideas for money. Usually, they promise profitable buy and sell trading positions and charge every month.

Here are the key aspects that characterize these scams:

  1. Exaggerated Profit Claims: Scammers often lure unsuspecting individuals by promising extraordinary profits. The golden rule is if it sounds too good to be true, it probably is. No trading strategy can guarantee profits, let alone high ones, consistently.
  2. Overemphasis on Success Rate: Many fraudulent signal providers boast unrealistically high success rates, often above 90%. They don’t reveal that the few losing trades could be so large that they wipe out all the profits from the winning trades.
  3. Poor Risk Management: Scammy signal providers often suggest strategies with a wide stop-loss and a tiny target or do not discuss stop-loss. They usually do this to maintain a high winning rate, but it exposes the trader to huge losses when a trade goes wrong.
  4. Lack of Trading History: Scammers often fail to provide a verified track record of their signals’ performance. They might show only their winning trades while conveniently ignoring the losing ones. Be wary of signal providers who refuse to provide a verified trading history.
  5. High Fees: Scam forex signal services often have exorbitantly high subscription fees, promising that trading profits will easily cover costs. This can create pressure to continue trading even when losing to recover the subscription cost.
  6. Repainting Indicators: Some fraudsters use ‘repainting’ indicators, which change their values or signals retrospectively to make them look more profitable than in real-time trading.
  7. Pressure Tactics: Scammers may use high-pressure sales tactics, such as limited-time offers or limited availability, to rush you into subscribing without proper research or trial.

To avoid falling victim to forex signal scams, it’s essential to do thorough research, use a healthy dose of skepticism, and never risk money you cannot afford to lose. Successful forex trading involves careful planning, consistent strategy, and disciplined risk management.

flashy lifestyle pictures of forex scammers

For example, if traders trade short-time trades, and the risk-reward is 1:1, the winning ratio will be around 50% for the best market systems.

Even the most prominent trading companies can not create an excellent system that will bring profit every day or every month. Of course, big companies can be profitable every month using many trading systems and quantitative trading. The trick is not in the forex signal – the secret is in portfolio management.

When someone is a new forex investor, it is realized that one of the critical challenges posed for this person is being able to determine which operator they will trust on the scene of the forex market as well as which ones to avert having any dealings with. Careful consideration must be given to signal operators.

See my video about fake gurus:

It is noted that there are some systems based on the reliance on technical analyses, while others may seem to be based on the reliance on trending news. Some systems may also claim that they apply a combination of both of these elements. However, all these systems extend the guarantee that they provide information that will yield opportunities for favorable profit earnings from trading.

A wide criticism about signal sellers is that if it were plausible to apply the usage of their systems to come ahead of the market, it would seem strange for the person to share this information on a wide scale. This is because the person would benefit more from using this system to make large profits.


Forex Scams Examples in the Past

I can share some general examples of how these scams have led to arrests:

  1. Lee Elbaz Case (2017): Although not a forex signal scam precisely, it’s worth mentioning the case of Lee Elbaz, CEO of Yukom Communications, who was arrested in 2017. She was involved in a binary options scam, which is quite similar to forex signal scams. The scheme defrauded investors worldwide of millions of dollars. Elbaz was convicted in 2019 of investment fraud and sentenced to 22 years in prison.
  2. Javier Paz (2014): Again, not a forex signal service per se, but rather an Automated Trading Desk Manager. Javier operated a company known as Forex Art of War. He was charged with fraud for collecting money from investors to invest in forex and misappropriating those funds for personal use. The Commodity Futures Trading Commission (CFTC) took action against him, highlighting the importance of regulatory bodies in the trading world.
  3. F.X. Fraud Cases in Israel (2017-2019): Israel has recently seen several forex and binary options fraud cases, leading to numerous arrests. These cases involved various fraudulent activities, including misleading forex signal services.

These examples serve as stark reminders that regulatory authorities take forex signal scams very seriously. This is why it’s vital to report any suspected fraudulent activity to the appropriate authorities, as they can investigate these matters and take legal action against the culprits.

I suggest looking up reputable news sources or regulatory body websites for the most up-to-date information on recent arrests, such as the Commodity Futures Trading Commission (CFTC) or the Financial Conduct Authority (FCA). Remember, your best protection against scams is to stay informed and report suspicious activity.

How to protect from Forex signals scams?

Protection from forex signal scams begins with awareness and education. Like any business, understanding that trading requires knowledge, time, and effort is the first step in safeguarding yourself from becoming a victim. Here are some tips to help protect yourself:

  1. Realistic Expectations: Forex trading is not a ‘get rich quick’ scheme. Profits require time and patience, and losses are a part of the trading process. Anyone promising high profits with little to no risk should be viewed with extreme skepticism.
  2. Education: Take the time to learn about forex trading from reputable sources. This includes understanding market trends, how different economic factors affect currency values, and the various strategies used in forex trading. An educated trader is less likely to fall victim to scams.
  3. Risk Management: Learn and apply risk management techniques in your trading. This includes setting a stop-loss order for every trade to limit potential losses and not risking more than a small percentage of your trading capital on a single trade.
  4. Research Signal Providers: Conduct thorough research before subscribing to any signal service. Look for verified trading results over a long period. Beware of providers who refuse to provide a verified trading history or only show their winning trades’ results.
  5. Trial Period: Many reputable signal providers offer a trial period where you can test their signals using a demo account. Use this to evaluate their performance before risking real money.
  6. Regulation: Check if the signal provider is regulated by a reliable financial authority such as the Financial Conduct Authority (FCA) in the U.K., the Australian Securities and Investments Commission (ASIC), or the Commodity Futures Trading Commission (CFTC) in the U.S.
  7. Avoid High-Pressure Sales Tactics: Be wary of anyone using high-pressure tactics such as limited-time offers or claims that spots are running out. This is often a sign of a scam.
  8. Investment Size: Never risk money you cannot afford to lose. Start with a small investment and only increase it when you are confident in the provider’s legitimacy and performance.

Remember, forex trading is a business. It requires planning, strategy, and disciplined execution. With the right expectations and preparation, you can protect yourself from most scams and focus on building a successful trading career.

See my video on how to report scams on Instagram:


Fake forex signal sellers present a considerable challenge in online trading. These fraudsters capitalize on the allure of quick and substantial profits, leveraging the lack of knowledge among many aspiring traders. Using various deceptive tactics, they create a mirage of profitability that often results in significant financial losses for unsuspecting victims.

Their actions not only harm individual investors but also damage the overall integrity and reputation of the forex trading community. They undermine the efforts of legitimate traders and educators who advocate for informed, strategic, and disciplined trading practices.

To protect oneself from these scams, it’s essential to manage expectations realistically, understand the inherent risks in trading, and undertake thorough research before subscribing to any signal service. Education remains the most potent weapon against these scams – an informed trader is much less likely to fall prey to such fraudulent schemes.

In conclusion, while fake forex signal sellers are a disheartening reality in the trading world, their influence can be mitigated through education, diligence, and vigilance. Trading is a journey requiring patience, resilience, and continuous learning. By maintaining these values, aspiring traders can confidently navigate their path, undeterred by the scams that lurk in the shadows of the trading world.



Igor has been a trader since 2007. Currently, Igor works for several prop trading companies. He is an expert in financial niche, long-term trading, and weekly technical levels. The primary field of Igor's research is the application of machine learning in algorithmic trading. Education: Computer Engineering and Ph.D. in machine learning. Igor regularly publishes trading-related videos on the Fxigor Youtube channel. To contact Igor write on:

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