This article is about forex brokers and the possible scams they could present.
If you are looking for forex brokers and you do a search on the internet, not only will you find an unbelievably large list of brokers, but you will also find a similar list relating to scams and forex brokers. This financial market is slowly moving towards regulation, but in the meantime there are many unscrupulous brokers out there who simply want to pocket your money. You will have to go through an elimination process to ensure that you are not scammed in future.
Sorting out the facts
When you are faced with so much information about foreign exchange trading and you see so many bad comments about brokers, you have to learn to sort fact from fiction. Many traders in this market do not make the grade and blame their failure on forex brokers. This is not always the case and that means that you need to do your own research. Many of the complaints about brokers indicate that it could have been the fault of the trader. There are instances when the broker may have been at fault, but this is not always the case.
Communications and withdrawals
The real problem that you could face with your broker is a breakdown in communication. If you do not receive email responses from your broker, the broker provides vague answers to your questions, or your broker does not answer the telephone, then you know you should take note of the red flag that is waving in front of you.
Any issues that you may be experiencing with your account or with the trading platform should be resolved by your broker, or at least an attempt to resolve your issues should be made. One of the main problems that you may have to face with broker is not being able to withdraw funds from your trading account.
Protecting yourself from fraudulent forex brokers
To avoid this type of problem in the future, you should carefully consider who you open an account with.
- Do online searches for reviews on a broker. Bear in mind that some of the bad reviews may not be legitimate.
- Ensure that there are no funds withdrawal problems related to the broker. If there are, and if you are able to, you should contact the user and ask for more details about the incident.
- If your search has brought you to a suitable broker, you should open a mini account. Trade with that account for at least a month and try to withdraw funds. If you are happy with the method of withdrawal and all the other service being offered, you can deposit more funds and continue trading with that broker.
- If you experience problems with your mini account, contact the broker and discuss your issues with them to give them a chance to rectify the situation. If this contact fails, you should move on and find a new broker. Post your experiences online to alert possible new users about the problems you have had with that particular broker.
- Find out if there are any legal actions being taken against a broker.
- Read all the terms and conditions related to opening your account.
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