How To Avoid Fraudulent Forex Brokerage Firms

How To Avoid Fraudulent Forex Brokerage Firms

It takes one quick search on the internet to come up with a list of forex trading platforms. Now while each of them might have a stable server set up on the web, you can’t ever be too sure of their legitimacy.

The forex market is slowly making its way towards monitored regulation, but until then how can you keep up with your trading ventures when you have such vultures going around. For trading on the open market, traders today require reliability and stability from their respective trading platforms.

forex scam

In order to assess this viability factor, The Investment Center broker David Green explores the trading scene today to identify some key factors new traders and amateurs can keep in mind before pooling all in with a firm.

Responsive Network

It is always better to establish correspondence with the brokerage firm’s representatives in order to learn more about them. You can tell a lot about a broker by the way they respond to your queries. Whether it is to learn more about them or to gain some insight on the trading scene through their hired experts, make sure you evaluate the infrastructure of the firm before you even choose to trade with them.

Most fraudulent brokers have set up scam servers where they employ the use of automated systems to lure in neophytes. Always beware of such brokerage firms that offer promises of forex collections that they barely can keep up with themselves. Don’t be misled by the vague statements they make to reassure you of their credibility. Reporting such servers is the best way to deal with them.

Scam Deals

Yes, you heard that right. There are servers out there that will mess with the quoted rates to stop orders in order to keep ahead of the price movements. While this type of manipulation is not that common, there are brokers that continue to make commissions off of increased trading volumes.

Their accounts backtrack all your information and have you spend a lot more than you will be willing to for a deal. This is why you want to select a broker that displays transparency when it comes to their pricing strategies so you know what you are in for. Hidden prices and increased commissions will only set you back in your trading business.

Phoney Security

Security is one aspect you cannot compromise on. But how can you know which platform is providing you with up to the mark security and which isn’t? Well, you can start by assessing their security guidelines. Forex platforms that are upfront about their security protocols are ones to go for. They will already inform you of the regulations that they have in place.

scam

For example, platforms that employ third-party security services generally put up a disclaimer regarding the security of your data. It is always better to pick platforms that are reputed for their secure and efficient transactions since that would be their fundamental use.

False Advertising

Marketing pitches are generally very appealing. But that doesn’t mean you should fall for them every time. For no matter how shiny the promises may look, “all that glitters is not gold”.

So, all those firms offering you 100% profits and no prospective losses are just trying to lure you in. The trading world is as unpredictable as the next stock market crash. You won’t be able to see it coming or prepare for its impending damage. Be logistic while assessing platforms and don’t fall for empty promises that will just leave you hanging in the end.

Take Away

Traders blame brokers for every single downfall that they may face, but there are certain times when the broker is actually the one responsible. In order for you to excel in your trading ventures, you need to choose a platform that is dependable and does not have you looking over your shoulder every now and then.

take away

For this, make sure that you assess every feature of the broker you choose to opt for in the end. Surely, it will prove to be better than crying over spilt milk – when you lose everything that you worked so hard to achieve.

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