39. Is There Any Broker Scam in History? How Bad Is It?

November 15, 2022
Yes, there is. Some scams are exposed and brought into the media for their huge amount of losses. One of the most highlighted scams in the forex industry is Forex Probe which accumulated a total fraud of more than $4 trillion.

Some examples of scamming forex broker cases are as follows:

  • Orion International in London
    Founded by Russell Cline in London, this company promised a return on investment of 60%–200% with little risk. The total amount of fraud was $16 million and the case ended up with Cline sentenced to 8 years and 1 month in prison. He was also fined $33 million.

  • Joel Nathan Forex Fund
    The company was founded by Joel N. Ward and claimed to provide an investment fund of $15 million. The scam cost 110 investors a total loss of more than $11 million. Ward was eventually sentenced to 9 years in prison and an $11 million fine.

  • Global Forex Management Fund
    Patrick Gallagher and Michael Dion founded this company to attract investors by claiming huge returns based on trading results that they had fabricated. With a total fraud of $30 million, the founders were both sentenced to 25 years in prison.

  • Forex Probe
    This forex scam involved major banks and forex brokers in Asia, Switzerland, the United Kingdom, and the United States. They managed to run away with an estimated amount of $4.7 trillion. As a result, FCA and CFTC imposed fines of $8.8 billion on Citibank, HSBC, JPMorgan, RBS, and UBS. In addition, several traders from the five banks were arrested and jailed for 14 years.

Education (46)

1. What Is Forex? 2. Why Does Forex Market Exist? 3. What Drives the Forex Market? 4. Why is Forex Trading Popular? 5. Can I Get Rich in Forex? 6. Are You Curious? Want to Discover More about Forex Trading? Meet Demo Acount! 7. I'm a Newbie, How to Master Forex Trading? 8. What Forex Knowledge Should I Conquer? What Are the Steps to Go Thorugh the Journey? 9. What are Software and Glossaries in Trading Forex? 10. How to Read the Forex Market? 11. How to Practice Forex Trading? 12. How to Ride on the Forex Wave? 13. How to Prepare Basic Trading Requirement? By the Demo Account? What about the MT4/MT5? 14. What is Bid-Ask Spread? 15. What is Pip? 16. What is Lot Size 17. What is Leverage in Forex Trading? 18. What is Margin? 19. When to Trade Forex? 20. What is the Most Dominant Market in Forex? How is the Characteristic? 21. What is Chart in Forex? 22. What is Candlestick? Why is It the Most Popular Chart in Forex? 23. What is Technical Analysis? 24. What is Fundamental Analysis? 25. What are MT4 Indicators and How to Use Them? 26. What is Risk in Forex? 27. What is the Psychological Effect in Forex Trading? 28. How to Compile a Strategy Template? 29. How Long Should You Practice in a Demo Account? 30. When Do I Need to Start Learning about Brokers? 31. What Exactly Does a Forex Broker Do? 32. Can I Trade Forex without Broker? 33. How Much Money Do You Need to Trade in Forex Brokers? 34. How to Choose a Good Forex Broker? 35. What is Regulation? And Why Should Regulation Exist? 36. Why Should You Choose Forex Brokers with Top-tier Regulations? 37. How to Choose Forex Brokers Based on Your Need and Where You Are From? 38. What Brokers Should You Avoid? 39. Is There Any Broker Scam in History? How Bad Is It? 40. What are the Most Popular Brokers in The World? 41. What are the Best Brokers For Entry-Level Traders? 42. What are the Best Brokers for Traders with Minimum Deposit Capabilities? 43. Which Broker Provides a Demo Account and Easy Setup? 44. Which Broker Provides Easy Registrations? 45. What and How to Deposit on Forex Brokers? 46. What and How to Withdraw from Forex Brokers?

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