One of the worst things a trader can experience is to come upon a Forex scam. Some beginners in the field, yet, think that a Forex scam is actually a trader, who`s playing and acting in non-allowed approaches and methods, but as a matter of fact the Forex scam is a bad, with low reputation and poor reliability rating broker that is nothing else, but a very untrustworthy website, where, probably, they will steal your money away or your personal data. Indeed, a Forex broker that is a scam, can be very dangerous to both – beginners and advanced traders. But advanced traders are more experienced to recognize and avoid them. We have asked few advanced traders as to the best ways to recognize a broker scam and see what tips they have given to us and to you, the Forex beginners:
Don`t sign in a broker immediately – ever!
An advanced trader advice you never to make a registration on a Forex broker`s website right after you come across it or see an ad in the web for it. Better, make your homework in advance to protect yourself at a full value. You need to read the reviews for the broker and then, to check out if there are real feedback and opinions – in other internet resources and websites – made by real traders, who have been already there. Trading community is quite big and there are many traders, who communication and discuss such topics in Facebook groups, forums and etc.
A Forex scam usually is not regulated
First of all, a Forex scam is almost never officially licensed. This means that the company behind it does not have a legal permission to be financial services provider. On the other side, a scam is not regulated at all, because if it was, it could not be a danger for your money or your personal data. Regulation is something that is provided by official agencies – every country has one or several of these financial regulating agencies. And regulation is always composed of a detailed protective program and security measures packs.
In most cases, the website of the broker speaks of itself
There are signs you can see and find on your own on the page you are considering to join to make trades that can tell you that you are dealing with a scam for sure. Usually, an officially licensed and legal broker that deserves your attention has sections for education, as well as categories like Forex news and different trading tips and options to choose. Meanwhile, scams do not have such things and they rely on the big bonuses they provide to intrigue the trading audience and to get as many consumers as possible.
Recognizing a scam among all of the different and various Forex brokers is a skill you need to acquire from your very beginning in the field. Otherwise, you will be always exposed on a big risk and the good outcome of your activity you expect will never come.