Today in the world there is a huge number of forex brokers, many of whom mercilessly deceive many people around the world. If you search for scammers brokers on the Internet their number will surprise you. This is why it is very important to check the broker carefully before starting to trade with him because finding the reliable broker is crucial for every trader, regardless of whether he is a professional or a novice.
But how to identify the forex-brokers scammers? What should be pay attention for? The Broker-ABCs’ experts began to investigate these questions.
There are several specific signals, on the basis of which one can draw up a picture of the broker’s integrity. We will consider these signals below.
1. The broker promises easy money
Do not trust a broker who tells you that you will earn money without problems and quickly increase capital. To trade Forex and CFD requires a lot of time and patience, training and mindfulness to become a profitable trader. There is no easy money. If you devote your time and learn how to trade correctly, you can have an excellent source of income.
The activities of each broker should be regulated by the relevant financial authorities (financial regulators). Make sure that the broker you chose is regulated. If you have not found anything about broker regulation, then you should check the information about it on the website one of the regulators (for example http://asic.gov.au/). If there is no information here, then most likely this broker is a fraudster who is hiding his activity.
3. Registration address
Many brokers-fraudsters register their companies in places that do not cover the operation of any regulator. As a rule these are all kinds of islands and small remote countries. Also it is worth paying attention on the fact that the address of registration and the address of the main office of the broker must coincide. Otherwise it signals a danger.
The following two points will be useful to those who already cooperate with the broker and suspects him of fraud.
4. Withdrawal of funds
This is probably the most important. As soon as you make a request for withdrawal of earned funds pay attention on communication with the support service and at the time of withdrawal. The procedure of withdrawal usually takes 7-10 days. If after this period you still have not received your money and your manager constantly comes up with different excuses and deferments then this is a serious signal about deception. Be careful!
5. Positions that do not meet your goals
If you notice that the broker makes positions that you would not have committed (selling instead of buying) or if these operations do not correspond to your original goals (trading with small funds instead of large funds with more profitable positions), that immediately cease trading and demand for withdrawal. This signals that the broker makes bad deals intentionally in order to you invest more and more money into your account. In the end, you can lose everything.
Summing up, we can say that following these instructions, you most likely will be able to identify the deceiver even before you work with him. And if you still cooperate with an unscrupulous broker and notice this then as soon as possible withdraw the remaining funds and look for a company that will help you to increase your capital.