1. Beware of fakes and impersonations

Scammers often create fake versions of popular trading platforms to trick users into sharing their personal information. With AI, these clones can be extremely convincing, replicating layouts, logos and even fake testimonials. Hence, always check the URLs carefully since scammers often use slightly altered domain names to catch careless users out. 

If anything seems suspicious, change your password immediately and activate biometric recognition for added security. Remember, legitimate brokers will never ask for passwords or two-factor authentication codes over the phone or email.

A Trading212 user shared their experience of almost getting scammed on Reddit:

«Today a scammer called me to try and access my Trading 212 account. She confirmed my name and postcode before mentioning that there was some unusual activity on my account (red flag) and asked if I accessed my account from XYZ (quite a distance from where I live). I confirmed that I hadn’t. She said that she was securing my account and requested me to log into my T212 account and give her the code that appears. To be fair to T212, they had a relatively robust warning not to give the code out, and a button for secure account. I pressed the secure account button, and knew 100% from then she  was a scammer. She instantly ended the phone call after I told her I knew this was a scam and she must have then put my email address (which I didn’t give her) into some code that she had, as I then received hundreds of emails over the next 5-10 min.

So just be aware that scammers are targeting T212 customers, be vigilant, and never give out the security code to anyone.»

2. Verify regulation and licensing

Scammers often try to appear legitimate by claiming “SEC-registered” status, providing fake license numbers, nonexistent company addresses, or even registering shell companies in obscure jurisdictions, hoping users won’t check. To protect yourself, always verify the broker or investment adviser on official sites like the SEC’s Investment Adviser Public Disclosure database or FINRA BrokerCheck. If the firm or individual doesn’t appear, that’s a major red flag.

3. Scrutinize unsolicited advice 

Scammers often pose as personal finance consultants or trading advisors, contacting users via email, social media or messaging apps, claiming they can offer exclusive tips and insider ‘signals’ to boost your profits. For example, a trader might receive a LinkedIn message from someone claiming to be an “official eToro account manager” offering guidance, asking for money transfers or login credentials. Legitimate brokers never assign personal managers who solicit trades outside official channels. Always be wary of unsolicited advice and verify any guidance through the broker’s official support before taking action.

4. Don’t fall for ‘guaranteed returns’

No investment is risk-free. In a volatile market like forex, where currency values can fluctuate every second, anyone promising guaranteed profits is certainly a scam. Legitimate brokers would never promise consistent, risk-free returns on forex trades. Always research and verify credentials before investing a single penny.

5. Payment and withdrawal issues

A major red flag is when a platform is pushing untraceable payment methods such as cryptocurrencies or overseas wire transfers, where transactions are hard to track. By contrast, legitimate brokers provide transparent deposit and withdrawal policies, multiple payment options and predictable timelines. A practical safeguard is to completely avoid sending money to unverified platforms, and only use brokers which are regulated by top-tier authorities such as the SEC in the US, the FCA in the UK as well as leading EU authorities.

Trading boom creates new risks for investors

*The share of day traders is an estimate of the proportion of investors likely to engage in day trading, based on data from BrokerChooser’s ‘Find My Broker’ tool. The data provides a country-level breakdown of how frequently users intend to trade on their brokerage accounts, whether daily, weekly, monthly or yearly.

The findings come as global interest in online trading continues to surge – a trend that experts say is making retail investors an increasingly attractive target for scammers.

The United States ranks fourth in global online trading interest, scoring 7.51/10 in overall trading interest. According to BrokerChooser’s internal data, the country has the largest proportion of non-professional investors (51.25%) who can be classified as day traders or aspiring day traders, with over half planning to actively manage their investments daily.

US investors are also the most active when it comes to researching trading platforms, with 9,771 searches per million residents.

Based on BrokerChooser’s independent review, the highest-rated overall online broker for US investors is Interactive Brokers, while tastyfx achieves the top score for forex trading according to BrokerChooser’s proprietary methodology.

By comparison, the United Arab Emirates tops the rankings with a trading interest score of 8.42/10. Having a notable share of day traders at 46%, UAE residents show remarkable interest in learning trading and forex (461 searches per million) and researching the best trading apps and brokers (1,025 searches per million). 

The United Kingdom ranks third in global online trading interest, with around one in three non-professional investors (35.13%) being day traders. Besides, UK users are particularly active in searching for trading platforms, averaging 6,403 monthly searches per million residents.