Forex trading – in fact, markets in general – can get complex. That’s why many of us rely on brokers to help us navigate some of the trickier aspects of making money. However, it is not always easy to know which forex broker has your best interests at heart and is not running scams.
Thankfully, there are a few tried-and-tested ways to figure out scam forex brokers, and the link here offers a fantastic resource for this. ForexFraud is a brilliant platform if you are interested in the market but aren’t sure how to work it to your advantage.
For now, however, let’s take a look at a few points to remember should you find it tricky to tell scammers apart from the real forex broker.
The phrase ‘too good to be true’ really does apply when it comes to forex brokers. If you find a broker that offers you an amazingly cheap rate for advice and guidance, then make sure to do your homework.
It’s safe to say that the more money you invest in a forex brokerage, the higher the quality of expertise and service you can expect from a forex broker. Don’t be afraid to pay more than the bottom rates for forex broker support. If you really are passionate about forex, you will make sure to invest healthy cash in the market instead of cutting costs early on.
Consider contact points
Scammers will, invariably, ‘ghost’ you if they intend to run away with your investment money. Therefore, it makes perfect sense to look for a broker with multiple contact channels publicly available.
What’s more, you need to look for brokers that have strong aftercare or aftersales support. A pleasant broker while making the sale is all well and good, but you need reassurance that it won’t check out on you once it has your money.
Prioritize security and regulation
Legitimate forex brokers must have some form of regulation in place. In the US, this means that you should expect legitimate brokers to trade through either the Commodity Futures Trading Commission (CFTC) or the National Futures Association (NFA).
If your broker isn’t associated with either of these bodies, either tread very carefully or walk away. It’s otherwise quite difficult to tell whether a broker’s security is genuine before you hand over money.
Trust your gut
As with anything remotely financial, you should trust your instincts. Is there something shaky about the broker you’re considering using? Can you be sure that it offers full regulation and won’t run away with your money?
It can be a little bit of a tightrope to walk. Unfortunately, many people are involved in forex who found out the hard way that scammers do exist and will try confidence tricks.
Therefore, look for legitimate regulation, and make sure to ask plenty of questions. It really won’t hurt to do some fact-finding before you get in too deep. Whether you’re looking for a business broker or otherwise, these are great tips to keep in mind.
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