Being an experienced trader does not guarantee that you will never be fooled by fake and scam forex brokers in Indonesia and outside of them. Maybe, you trust the forex broker because of a friend.
Then, without thinking long, you trade there and experience some anomalies, until the peak you can not withdraw funds.
To prevent this from happening, find out the list of scam forex brokers operating in Indonesia. Here is the review.
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How to Easily identify Scam Forex Brokers
There are several reasons why many traders can fall victim to forex scams.
First, the lack of interest of traders to choose a forex broker that has been registered with the regulator because most trusted forex brokers require a large deposit.
Second, the lure of bigger profits when trading at scam forex brokers in Indonesia, thus attracting traders.
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Third, the lack of knowledge and information about how forex brokers deceive customers, causes many traders or investors to choose brokers who have been declared scams by regulators.
Several factors cause a forex broker to be declared a scam forex broker, such as the following:
- Not registered with official regulators such as BAPPEBTI or home country regulators (if international forex brokers). However, it has a claim to have been registered with the regulator.
- The official license of the forex broker has been revoked by the regulator because it has committed a serious violation.
- There have been cases of failed withdrawals without any clear reason and proven to be deceiving traders or investors.
Before trading or investing, you can also find out the reputation of the forex broker first, find out the list of the most trusted forex brokers reviewed by traders and investors.
Most easily you can search on the internet or ask directly with experienced traders. The experience of traders can be a source of reference for you.
Take note of the list of scam forex brokers in Indonesia that you often hear from experienced traders or investors. Also, make sure you can distinguish between facts and opinions that are only emotional.
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List of Fake and Scam Forex Brokers in Indonesia
Also read: 5 Components of How to Become a Professional Forex Trader
Choosing the best forex broker is one of the important keys to achieving success in trading or investing. So that you avoid fraud that not only drains you financially and emotionally.
The following is a list of scam forex brokers in Indonesia based on a report released by BAPPEBTI:
1. PT Arta Mas Futures formerly known as PT Bimasakti Futures
BEPPEBTI officially revoked PT Arta Mas Futures license on April 9, 2020. This revocation was carried out because the membership status of this brokerage firm had previously been frozen by the Jakarta Futures Exchange.
Reporting from Kontan, Arta Mas Futures faced lawsuits from three customers because they were deemed not to have disbursed customer investment funds with a value of IDR2.48 billion, IDR760.61 million, and IDR30.39 million, respectively.
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2. PT Arta Berjangka Nusantara
On June 5, 2008, the Jakarta Futures Exchange suspended the membership status of Artha Berjangka Nusantara.
Quoted from Detik, this brokerage company was proven to have committed several serious violations so that it was included in the list of scam forex brokers in Indonesia due to several reasons.
Such as unclear office addresses and telephone numbers making it difficult for customers to demand accountability, customers had difficulty withdrawing funds from the customer’s remaining equity.
Ownership, and the resignation made by the management of Artha Berjangka Futures, so that no party is responsible for the company’s operations.
3. PT Axo Capital Futures
BEPPEBTI revoked the license of PT Axo Capital Futures on June 30, 2014.
This revocation was also carried out by the Jakarta Futures Exchange due to the discovery of several violations so that it was included in the list of scam forex brokers in Indonesia that you should be aware of.
Reporting from Bisnis, BEPPEBTI found that Axo Capital Futures has moved offices. This brokerage company also misuses customer money for the company’s operational activities.
Not only that, Axo made an agreement that was added with articles aimed at weakening the customer’s position and the existence of customer transactions that were not reported to the Jakarta Futures Exchange and were not registered to the Indonesian Futures Clearing House.
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4. PT Buana Investment Global Futures
BAPPEBTI and the Jakarta Futures Exchange suspended PT Buana Investment Global Futures’ license on January 7, 2011.
Quoted from the Bisnis page, this brokerage company was included in the list of scam forex brokers in Indonesia for committing illegal acts, namely misusing customer funds in segregated accounts.
5. PT Cayman Trust Futures
Quoted from Antara, BAPPEBTI revoked the license for Cayman Trust Futures on September 9, 2008.
This revocation was carried out because the membership status of this brokerage firm had previously been suspended by the Jakarta Futures Exchange.
Cayman Trust Futures is included in the list of scam forex brokers in Indonesia because they have committed serious violations such as not storing customer funds in segregated accounts or separate accounts but in company accounts.
The customer’s funds were also misused by using them for the company’s operational interests and opening accounts at other brokerage companies. As a result, customers have difficulty withdrawing funds.
CTF also manipulates data in compiling monthly reports submitted to BAPPEBTI and BBJ and KBI. The numbers listed do not match the actual conditions.
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6. PT Danagraha Futures
The next list of scam forex brokers in Indonesia whose license was revoked by BEPPEBTI is Danagraha Futures.
This brokerage firm was officially frozen on July 9, 2018, followed by BBJ which revoked its membership of Danagraha Futures on July 11, 2018.
Reporting from Antara, this scam brokers company provides the lure of profit for traders or investors of 2%-3% per month through trading signals and the excess of this trading signal is believed to be able to detect a maximum loss of 6% with the promise of withdrawing funds at any time.
However, customer funds have not been returned. The total losses suffered by Danagraha Futures customers reached Rp 13 billion-14 billion.
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7. PT Graha Finesa Futures
Allegedly collecting customer funds of up to 2.1 trillion, BEPPEBTI has revoked PT Graha Finesa Futures license, following the suspension of membership of this brokerage firm by the Jakarta Futures Exchange.
A total of 61 customers reported Graha Finesa to the Central Jakarta District Court.
According to several news sites, Graha Finesa provides incomplete and misleading information that is intended to harm customers.
This forex broker improperly persuades prospective customers through mass media such as opening job vacancies. These job seekers are persuaded to invest in this brokerage firm.
Graha Finesa always explains the multiplied profit without notifying the investment risk. This case caused Graha Finesa Berjangka to be included in the list of scam forex brokers in Indonesia.
This list of seven scam forex brokers in Indonesia is based on press releases released by BEPPEBTI, the Jakarta Futures Exchange, and the Indonesian Futures Clearing House.
Also read: What is Forex Trendline Analysis
Scam Forex Brokers Outside of Indonesia
In addition, there are also scam brokers located outside Indonesia such as:
1. Sunton Capital
Sunton Capital or commonly referred to as Suntonfx. Which is a foreign trading robot from the UK. Known as a broker who has accurate predictions with large earnings than other foreign brokers.
Sunton Capital is committing fraud by doing mass Margin Calls on their site. Sunton even continues its action through a site called ELIFX.
2. Mark AI
In addition, there is also Mark Al who does similar scamming with Sunton Capital. This Mark Al did the scam before this Sunton Capital.
3. HTFox
There is also HTFox which also commits a similar scam. The domain of illegal forex broker sites that are excited in Indonesia
Unlike the seven scam forex broker lists that have been mentioned.
The forex brokers below are the domains of illegal site entities whose appearance has shocked traders in Indonesia. This forex broker never had a permit from the regulator. Anything?
4. Binomo
Binomo is a platform created by stockbrokers. They offer services for binary options trading schemes, which are in the form of analysis of ups and downs in prices within a certain time frame. In Indonesia, they are expanding their expansion through Youtube ads.
BEPPEBTI together with the Ministry of Communication and Informatics blocked the domain of this illegal entity site on May 17, 2019, and was added to the list of scam forex brokers.
According to BEPPEBTI, Binomo is committing fraud because it uses duplication or carries a business license from another futures broker and has the potential to harm the public.
Binomo ads are also considered manipulative because they illustrate that the target audience is ordinary people who don’t understand the world of trading or investing, such as high school students, college students, and laborers, thus providing an opportunity to commit fraud.
5. Masterforex a.k.a MFX
MFX had become one of the favorite forex brokers for Indonesian traders. This international forex broker is suspected of committing fraud to customers.
Many traders previously wanted to make a withdrawal of funds but were rejected and postponed for months.
At the climax, at one of the well-known internet forums in Indonesia, it was widely discussed that the manager of the Indonesian MFX forex broker website stated that it had cut ties with the central MFX because the process of withdrawing funds was very difficult.
The victims of MFX fraud are not only Indonesian traders or investors, but also traders or investors from all over the world.
It is strongly suspected that Masterforex changed its name to MFX without the permission of the regulator or in other words, MFX is an unregulated forex broker from the beginning and entered the list of scam forex brokers.
How not become a victim of forex broker scams?
Although some of the cases on the list of scam forex brokers above occurred 10 years ago, it does not guarantee that forex broker fraud will not happen again.
It is proven that until now, many traders or investors are still victims of forex scams. The total loss suffered was not small. Then, how do you not become a victim of forex broker fraud?
1. Always check regulations
Forex regulators are government agencies or autonomous institutions whose role is to maintain law and order compliance with brokers, as well as provide guaranteed protection for traders.
If you prefer an international forex broker, make sure this forex broker has regulations in the country of origin. The following forex regulatory institutions are authorized to provide regulations for brokers in various countries:
- Commodity Futures Trading Supervisory Agency BEPPEBTI). Forex broker regulator in Indonesia
- Financial Conduct Authority (FCA). UK forex broker regulator.
- CFTC (Commodity Futures Trading Commission) and NFA (National Futures Association). Forex broker regulator in the United States.
- Australian Securities and Investments Commission (ASIC). Forex broker regulator in Australia.
- Financial Services Agency (FSA). Forex broker regulator in Japan.
- MAS Monetary Authority of Singapore. Forex broker regulator in Singapore.
- SFC Securities and Futures Commission. Forex broker regulator in Hong Kong.
- Autorite des Marches Financiers (AMF). Forex broker regulator in France.
- Federal Financial Supervisory Authority (BaFIN). Forex broker regulator in Germany.
- Commissione Nazionale per le Societ e la Borsa (CONSOB). Forex broker regulator in Italy.
- You can check the list of forex brokers registered with Indonesian regulators on the BEPPEBTI official website. For those who prefer an international forex broker, you can check on the official website of the regulator above according to the country of origin. If the forex broker is not thereafter you check, then you should suspect that the forex broker is included in the list of scam forex brokers.
2. Don’t get caught up in the lure of big profits
If there is a forex broker that promises 100% profit and loss-free certainty, don’t be easily tempted. Just like any other business or investment, losses are possible in the trading world.
Many cases from the list of scam forex brokers like the one above start by promising a lure.
A large deposit bonus is also often used as an inducement so that you are interested in becoming a trader or investor. These two ways are usually used as fake forex broker strategies to deceive you.
3. Check the forex broker’s office address
Scam forex brokers will usually provide fictitious addresses to potential customers.
Even though forex trading is done online, information about the location of the forex broker’s office is important. If the office doesn’t exist, what if one day you encounter a problem or problem and hold them accountable?
4. Find out the reputation of the forex broker
Being active in the trader community is the easiest way to find out the latest news about the trading world.
In this community, traders will usually share their experiences during trading, including information about a list of trusted forex brokers and a list of scam forex brokers.
You can also do a search on the internet about the reputation of a forex broker before starting trading with a particular forex broker.
5. Pay attention to the website domain address
Have you checked the regulations, office address, and reputation of the forex broker, but are still being fooled?
Chances are you are deceived by cloned forex brokers, this type of forex broker usually uses the name of a popular broker who has been trusted by many people through the website domain.
Clone forex brokers usually use a domain URL similar to the real regulated forex broker. How do you avoid this scam?
First, note down the domain address of the forex broker you have chosen. When logging into the broker’s site, make sure it has the same domain.
If you visit a new broker, make sure you get a link from a trusted source, not from an email that suddenly appears without knowing its origin.
Before registering with a broker, it’s a good idea to listen to reviews that are widely available on the internet or ask questions in the discussion forums of fellow traders.
Clone forex brokers will be much different and appear less professional. BEPPEBTI together with Kominfo will usually release a list of scam or fake forex brokers along with the domain addresses of blocked illegal forex broker websites.
6. See the services provided
Unlike the case of the scam forex broker list above which disappeared suddenly, a trusted and regulated forex broker will provide a special channel so those customer problems are resolved quickly and are not allowed to drag on because it affects the company’s reputation.
Educational services are also an important factor because forex trading is an activity that has a high risk.
Education is useful for minimizing the risk of loss and providing you with knowledge about the potential profits that you can achieve in the trading world.
Check the education classes that GIC often holds, you can learn directly from the master trader! What if you are a beginner? Don’t worry, you can customize the class you want to take.
Now you know the list of scam forex brokers and how to avoid scams. Make sure you make a more thorough observation.
Many new traders who enter the forum immediately ask for broker recommendations without wanting to do further research. Many scam brokers in Indonesia are eyeing this opportunity to offer their fake services, so you need to be careful.
However, you are lucky, you can join the ForexPsychology.com ecosystem without worrying about being scammed by scam forex brokers. GIC offers many benefits for people who join.
