FXStreet Launches Campaign Against Industry Scams

“Scams are a significant issue in the industry,” Pere Monguió Montells, Co-CEO of FXStreet, shared at the iFX EXPO International. He noted that these scams not only “steal business from companies but also harm traders.”

In response to this growing problem, FXStreet has initiated a campaign to combat scams, aiming to increase awareness within the industry about various types of fraud. The platform has even collaborated with Finance Magnates to launch an industry-wide survey to measure the prevalence of such scams.

Montells emphasized the campaign’s mission to “help traders protect themselves and inform them about what they can and cannot expect from us.” He stressed that clear messaging is crucial in preventing traders from falling victim to scams.

Montells outlined a three-layer approach to preventing scams. He stated that the first and most crucial layer is at the trader level. Traders need to be aware of the risks and take steps to protect themselves, as negligence on their part can nullify any external assistance.

The second layer involves brands, including brokers and other entities that build trust but can be exploited by bad actors. Montells pointed out that brands must clearly communicate their practices to their followers. For instance, FXStreet does not manage third-party funds or accept money from traders for trading purposes, and it is vital for users to know this. If someone contacts them asking for a transfer, it is undoubtedly a scam.

Finally, Montells addressed the role of regulators, whom he described as “the most fragile right now.” He highlighted that scams do not occur on brokerage websites or official platforms but rather on third-party platforms like social media, WhatsApp, Discord, and Telegram. These platforms must take responsibility for addressing this issue, and Montells believes regulators could significantly help by focusing on these areas.

Regulators in various countries, including the United Kingdom, Cyprus, Spain, and New Zealand, often publish lists of fraudulent domains to alert the public. However, only Italy goes as far as blocking these domains. Unfortunately, none of these regulators have effectively tackled scams on third-party platforms.

Some brokers do take proactive measures to warn their customers about clone scams, but these are rare. Montells noted that many brokers are reluctant to address this issue publicly because it does not reflect well on them. He explained that brokers prefer to highlight new features or their successes rather than discussing their challenges.

Montells concluded by emphasizing the need for collective action. He stated that the issue of scams is not just a single broker’s problem but a shared challenge within the industry. He called for unity in addressing this problem, suggesting that working together could be the most effective way to tackle it.

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