A search on the forex broker scam will reveal several disheartening results. Even with increased regulation in the market, there are many unsolicited brokers who are only out there to dupe the traders of their hard earned money and until they eventually get weaned out, they will continue to cause havoc to the market.
It is very important to know which broker is reliable and viable even before you start your trade since this will assist you in avoiding the bad ones in the market. To be able to correctly separate the good from the forex broker scams, it is good to go through a series of steps before you even think of deposing your fund with the broker.
All forex brokers, either start ups or professionals need to know the best and easiest ways of identifying fake forex brokers from the real ones in the market. This is usually done by going through forex reviews and ratings. In checking these reviews and ratings it is good for the client to also bear in mind that some traders may post contents that blames the broker for their own mistakes encountered from a failed trading strategies. Some of the nice reviews may also be given be fake forex traders who have been paid to that effect. To determine the truth in a reviewer’s comment, it is of paramount importance to engage the review in a conversation i.e. where possible. The trader should be able to separate all facts from fictions in forex review comments.
Most of the times, a forex broker scam begins with an inability of the forex trader to be able to communicate with the forex broker due to one breakdown or the other. When the trader fails to get a response from the broker, or the broker refuses to answer the phone calls or provides a vague answer to the trader’s questions, then these can be regarded as a red flag that a broker may be looking for ways that will not suit the client’s interest. When this is noticed, the issue should be resolved by making complain to the regulating body which will call the broker to order.
WAYS TO PROTECT YOURSELF AGAINST FOREX SCAMS
• Do an online search for reviews of the broker. Make sure you filter all that has been said about the forex broker and ascertain it to be true. Also determine the regulations of the forex broker.
• Make sure the forex company does not have any history of complaints in terms of the withdrawal of funds. If you find any, try to connect with the user and enquire about their experiences.
• When opening an account, make sure you read through all the documents relating to the account.
• Open a mini account if you are satisfied with the results of your search on the forex broker and also invest a small capital first. Trade the little capital for some time and then attempt making a withdrawal.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.