AuthorBy Jeffrey Cammack
Updated: September 8, 2022

How do I avoid being scammed?

There are many Forex-related scams enticing clients from Tanzania. We frequently receive emails from traders who have been unable to withdraw money from their accounts or facing other forms of resistance from brokers or individuals whose sole purpose is to have clients deposit and then refuse to refund the money.

There are some steps you can take to protect yourself.

  1. Never give money to someone to trade on your behalf. It is illegal in Tanzania for anyone to invest on your behalf without a licence from the Capital Market and Securities Authority of Tanzania (CMSA). 
  2. Never send money to people you meet on social media. In our research, we have found that over 50% of Forex scams start on Facebook and Instagram.
  3. Never trust any broker or person offering guaranteed returns. Forex trading is high-risk speculation, and profits are never guaranteed.
  4. Always check whether a broker is regulated. The CMSA in Tanzania does NOT regulate brokers, so we recommend using brokers regulated in Kenya, South Africa, the UK, Europe or Australia. Regulated brokers are required to publish their licence numbers on their websites. See below for Pepperstone Kenya’s CMA licence number across the bottom of their website:

Pepperstone CMA Licence

Once you know a broker’s licence number, check with the regulator to see if the broker’s licence number is legitimate. The CMA in Kenya keeps a register of all licenced brokers operating in the country. Other major regulators such as the FSCA (South Africa), FCA (UK), ASIC (Australia) and CySEC (Europe) also have searchable registers.

I think I have been scammed. What should I do now?

If you believe you are a victim of a scam broker, the first step you should take is to contact your local regulator and make a complaint. In Tanzania, you can contact the CMSA here

We also collect information on scam brokers and scam Forex traders in Tanzania. Please let us know your experience using the form below. 

What we will do with your information:

  • We collect answers from lots of traders and where we see a trend, we will conduct research into the broker in question and publish those results. Your voice matters a lot here.
  • We reserve the right to use your story for informative purposes on this website and that we will anonymise all names.
What we will not do with your information:
  • Publish your personal details.  We may share your story, but will never attribute the comments to any one individual. Your privacy is respected.
  • Smear brokers where we can not find evidence of wrongdoing.
  • Represent individuals to help you recover your funds. We are not lawyers and don’t have the ability to do this.  We are just a public warning system.

 

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Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 75-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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