CFTC
Customer advisory: There's Nothing to Like about Scammers on Social Media
The CFTC describes fake profiles that show winning trades and big balances, and advises against relying on tips or claims seen online.
Trading signals are tips about when to buy or sell, often shared in feeds and groups. This page summarises what the US Commodity Futures Trading Commission (CFTC) says about fake profiles and tips on social media, and what it advises. It does not assess any signal provider or name any seller.
How the CFTC Describes Fake Profiles
In its customer advisory, the CFTC states: "Fraudulent profiles can be easy to spot if you know what to look for." It adds: "They typically flaunt wealth or brag about their huge “win” percentages." A profile that leads with big claims about winning is therefore, on the CFTC's description, a reason for caution, not for trust.
Screenshots of Winning Trades
The advisory warns that fake profiles use proof that cannot be checked: "Posts may even feature screen shots of “winning trades” or huge account balances." A screenshot shows selected trades at one moment and says nothing about losses. For how to read a results claim, see strategy real results vs marketing claims.
What the CFTC Advises
The CFTC's advice is short: "Don’t rely on tips or claims you see online." It also reminds readers: "Remember, there is no such thing as a risk-free investment." Because a signal service sells the idea of certainty, the second sentence applies to every promise of guaranteed accuracy.
Where to Read More
Our guide to blindly following signals covers the habit from a trader's side, and binary options trading signals explained describes what signals are. Related warnings are social media scam ads and trading group chat scams. To report a suspected scam, see how to report a binary options scam.
Frequently Asked Questions
How does the CFTC describe fraudulent profiles?
The advisory states: "They typically flaunt wealth or brag about their huge “win” percentages."
Are screenshots of winning trades proof?
The CFTC notes that posts may feature them, which is why they are not proof on their own.
What does the CFTC advise about tips seen online?
The advisory says: "Don’t rely on tips or claims you see online."
Does this page address whether an individual could face liability?
This page summarises what the regulators' published guidance says. It does not address whether an individual could face liability. Seek independent legal advice.
Sources and Official References
- CFTC: There's Nothing to Like about Scammers on Social Media (no date shown in the document text)
This page summarises what the regulators' published guidance says. It does not address whether an individual could face liability. Seek independent legal advice.
This page summarises what the regulators' published guidance says. It does not address whether an individual could face liability. Seek independent legal advice.