2025 Beginner’s Scam Prevention Kit

Written by

Jared Kessler

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This comprehensive kit is designed to empower new forex traders with the essential tools and information needed to protect themselves against scams in 2025. It covers four main areas:

  • License Verification Flowchart
  • Withdrawal Test Schedule
  • Emergency Contact List
  • Email Gate with Preview Screenshot Setup

1. License Verification Flowchart

Purpose:
Quickly and reliably verify if a broker is properly licensed and regulated before making any investment decisions.

Flowchart Steps:

  • Step 1: Broker Information Gathering
    • Collect Details: Broker name, website URL, contact information, and advertised license number.
    • Useful URL: Visit the broker’s website directly (e.g., brokerexample.com).
  • Step 2: Regulatory Check
    • Visit Official Regulatory Websites:
    • Action:
      • Search for the broker using their license number and name.
      • If Listed: Continue to Step 3.
      • If Not Listed: This is a red flag—do not invest.
  • Step 3: License Details Confirmation
    • Verify:
      • License number
      • Issue and expiry dates
      • Conditions of the license
    • Comparison: Check if the details match those on the broker’s website.
    • Useful URL: For more tips, read How to Verify a Broker’s License.
  • Step 4: Customer Reviews and Forums
    • Research:
    • Action:
      • If reviews are positive and consistent: The broker appears more reliable.
      • If reviews are negative or inconsistent: Investigate further before proceeding.

2. Withdrawal Test Schedule

Purpose:
Confirm that the broker processes withdrawals reliably and transparently before depositing larger sums.

Test Schedule:

  • Test 1: Small Withdrawal Test
    • Action: Deposit a small amount (e.g., $50).
    • Process: Attempt to withdraw after 24 hours.
    • Observation: Record processing time, any fees, and conditions.
  • Test 2: Moderate Withdrawal Test
    • Action: Deposit a moderate amount (e.g., $500) once Test 1 is successful.
    • Process: Initiate a withdrawal and note any changes in conditions or fees.
    • Observation: Consistency in the withdrawal process and transparency of fees.
  • Test 3: Large Withdrawal Test
    • Action: Deposit a larger amount (e.g., $1,000) to simulate real trading conditions.
    • Process: Withdraw the amount and compare the processing performance with previous tests.
    • Observation: Ensure no hidden restrictions or delays exist.

Useful Tip:
Always document your withdrawal test results (dates, amounts, fees, and processing times) for future reference. For additional insights, check How to Spot Fake Trading Results.

3. Emergency Contact List

Purpose:
Quickly access regulatory authorities and legal support in case you suspect fraudulent activity.

Key Contacts:

  • Regulatory Authorities:
    • ASIC (Australia):
    • FCA (UK):
    • SEC (USA):
      • Website: sec.gov
      • Phone: 1-800-732-0330
    • Your Local Regulator:
      • Please refer to your country’s official financial regulatory website.
  • Legal Support:

4. Email Gate with Preview Screenshot (Security Setup)

Purpose:
Add an extra layer of verification to protect your communications when receiving investment-related emails.

Setup Instructions:

  • Step 1: Set Up a Dedicated Email Account
    • Action: Create an email account exclusively for forex and investment communications.
    • Recommendation: Use providers with strong security features, such as Gmail or ProtonMail.
  • Step 2: Enable Two-Factor Authentication (2FA)
  • Step 3: Configure Email Filters and Preview Screenshots
    • Action:
      • Set up filters to automatically flag emails containing keywords like “investment,” “broker,” or “urgent withdrawal.”
      • Use built-in email client features or plugins (e.g., Mailvelope) to generate preview screenshots of incoming emails.
    • Verification:
      • Check that the sender’s details (email address, logos, formatting) match those of the official organization.
      • Tip: If the preview screenshot appears unusual or details seem off, do not click any links or provide sensitive information.
  • Step 4: Manual Verification
    • Action: For any suspicious emails, manually cross-check the sender’s email address against the organization’s contact information listed on their official website.

Additional Resource:
For more detailed email security practices, visit How to Secure Your Email.

How to Use This Kit

Follow these steps before you invest:

  1. Review the License Verification Flowchart:
  2. Conduct Withdrawal Tests:
    • Follow the Withdrawal Test Schedule to ensure the broker’s withdrawal process is reliable.
    • Document your tests and observations for future reference.
  3. Keep Emergency Contacts Handy:
    • Save the Emergency Contact List on your mobile device or print it out for quick access during any suspicious activity.
  4. Implement Email Security:
    • Set up your dedicated email account with 2FA and email filters.
    • Regularly review preview screenshots of investment-related emails to verify authenticity.

For a deep dive into spotting and avoiding scams, explore our comprehensive guide: How to Avoid Forex Broker Scams: The Ultimate Safety Guide (2025)

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Forex Risk Disclaimer

Trading forex, derivatives, and cryptocurrencies involves high risk due to volatility, leverage, and limited regulatory protection. The strategies and techniques discussed are not guaranteed to be profitable and may lead to significant losses. Please ensure you fully understand these risks and consult independent advice if needed. For detailed information, learn more about the risks of forex trading.