Select Page











Forex Fraud and Scams: Taking Legal Action

Forex (foreign exchange) trading fraud and scams refer to deceptive activities targeting individuals who participate in the foreign currency trading market. The Forex market is a high-risk global market which operates 24 hours a day and involves vast amounts of money. This has led to a high level of Forex fraud and Forex trading scams in recent years.

Listed below are some of the most common types of Forex fraud and scams:

  • Ponzi or Pyramid Schemes: Ponzi schemes and pyramid schemes promise high returns on investments and rely on recruiting new participants to pay existing investors. The fraudsters may claim to have a secret trading system or access to exclusive information. Eventually, the scheme collapses when there aren’t enough new investors to sustain the payouts of the promised returns.
  • Signal seller scams: Signal sellers offer systems or software that claim to provide accurate predictions of currency movements. They often guarantee substantial profits by following their trading signals. However, these signals are typically based on questionable analysis or random recommendations, leading to users losing money.
  • Fake brokers: Fraudulent Forex brokers operate online trading platforms that appear legitimate but are designed to deceive traders. They may manipulate prices, delay or refuse withdrawals, or engage in unauthorised trading on behalf of their clients. Fake brokers often lack proper regulation or use false credentials to gain trust.
  • Forex robot scams: These types of scams involve the sale of automated trading systems or “Forex robots” that promise to generate significant profits without any effort from the user. In reality, most of these robots are ineffective or use strategies that quickly lead to losses.
  • Account management Forex fraud: Some individuals or companies offer to manage others’ Forex trading accounts, claiming to have exceptional skills and experience. They often promise consistent high returns but may engage in unauthorised trades, misappropriate funds, or fail to deliver the promised results.
  • Advance fee fraud: Some Forex scammers may contact individuals and convince them to pay upfront fees or deposits for access to exclusive Forex investment opportunities or training programs. Once the payment is made, the scammers disappear without providing any services or returns.

At Annecto Legal, we can put you in touch with the right Forex fraud lawyers to assist with your case. We can also regularly advise you on your legal funding options. Unfortunately, because of the high costs of legal actions in the UK, we only assist in disputes which are valued at over £250,000, at the absolute minimum. We would like to be able to help on other claims, but we just don’t have access to any products that can assist on smaller matters. 

Avoiding Forex fraud and scams

Forex traders should always take a number of precautions before parting with their money to trade Forex. Traders may wish to consider the following precautions to help them avoid Forex fraud or scams:

  • Research and conduct a broker review. Only choose reputable brokers who are regulated by the Financial Conduct Authority (FCA).
  • Always be sceptical of promises of high returns or guaranteed profits.
  • Avoid investing with individuals or companies that lack a verifiable track record.
  • Be cautious of unsolicited approaches and high-pressure sales tactics.
  • Verify the credentials and regulatory status of brokers and other financial service providers. In the UK, brokers should be FCA regulated.
  • Educate yourself on Forex trading, including risk management strategies.
  • Be cautious when sharing personal and financial information online.
  • Trust your instincts. If something seems too good to be true, it probably is.

If you encounter or suspect Forex fraud or scams, it is essential to report them to the Financial Conduct Authority.

What to do if you are a victim of a Forex scam or fraud

If you have become the victim of Forex fraud or a scam, you should report it to the FCA. However, in a large proportion of cases, financial regulators are unable to take action due to the fact that many fraudsters are based in off-shore jurisdictions with little to no regulatory protection. If this is the case, you may wish to seek the assistance of a solicitor.

The financial and banking litigation solicitors on our panel have the skills and experience to take action against fraudulent Forex brokers or scammers. Depending on the circumstances, a solicitor can explore avenues for recovering your lost funds.

Fraudsters are adept at evading detection and hiding their assets, making the process of tracing lost funds time-consuming. Our panel of Forex litigation solicitors take a comprehensive approach, thoroughly analysing each case to uncover alternative paths for recovering the funds. Our panel lawyers leave no stone unturned, conducting extensive investigations and advocating fiercely on behalf of our clients, leaving no measure un-attempted to restore their money and bring the fraudsters to justice.

Funding Forex fraud litigation

If you are pursuing Forex fraud litigation, legal costs can escalate quickly. Therefore, it is crucial that you are aware of the funding options that are available to you. Funding this type of case can be complex and will often depend on the circumstances of the case. Listed below are some of the options for funding Forex litigation.

  • Conditional fee agreements– Conditional fee agreements (CFAs), also known as ‘no win, no fee agreements’, are a type of funding arrangement that allows individuals to pursue litigation without paying legal fees upfront. Under a no win no fee basis, the law firm agrees to take on the case and only charges a fee if the case is successful. If the case is unsuccessful, the client does not have to pay these legal fees. 
  • Contingency fee agreement – Some Forex litigation solicitors may offer to take on a case on a contingency fee basis. This means that they will only charge a fee if they are successful in securing a financial settlement or damages. The fee payable to the solicitor is usually a percentage of the amount recovered. If the case is unsuccessful, the law firm will not charge a fee.
  • After the event insurance – After the event (ATE) insurance is a type of insurance that can provide cover for legal costs in the event that a case is unsuccessful. This option can be particularly useful in cases where the outcome is uncertain, and the costs of losing a case could be significant. ATE insurance is often used in conjunction with conditional fee agreements.
  • Third party litigation funding– In some cases, third party litigation funders may be willing to provide funding for a case in exchange for a percentage of any financial settlement or damages awarded. This option can be attractive for individuals who cannot afford to pay for legal fees themselves but have a strong case.

How can Annecto Legal assist?

At Annecto Legal, our professional advisors assist clients in finding the right legal guidance and funding for Forex fraud litigation. Having specialist Forex fraud solicitors and being fully funded gives you that strength and forces your opponent to the negotiating table.

If you wish to speak to an advisor about making and funding a Forex fraud case, please contact us today. We can help find you the right representation, as well as managing your financial risks and sourcing funding for your legal fees.

Get in touch

* Annecto Legal can only assist on case where the loss is in excess of £100,000, with the exception of data breach claims. If you need assistance on a claim worth over £100,000, please get in touch using our form or the details below:

Registered Office

Annecto Legal Ltd, 106 Kennedy Building, Murray Street, Manchester , M4 6HS


0800 612 6587


Contact us directly