Because of the convenience they provide to customers, online forex companies have become something of a new trend. However, it’s essential to keep in mind that while they can double your money in no time, they can also drive you to the point where you have to start again from scratch. It all comes down to the decision you make when selecting a firm to assist you in entering the trading world.
If you’re lucky enough to get your hands on a trustworthy broker, you’ll be on your way to success in no time. But it’s not as simple as it looks, thanks to the devious traps set by fraudsters who have perfected the art of deceiving their clients, especially newbies.
While it may be incorrect to characterize the whole process as fake, no centralized supervisory body indeed oversees the actions of forex firms. We hear of traders being robbed by these untrustworthy brokers now and then, so we’re here to help you through the process of selecting a suitable and trustworthy broker.
David Bloom, broker of the Investment Center discusses some of the tips you may follow to avoid falling prey to these scammers. But, first, let’s be clear: it’s not an impossible task, but it is also not easy.
Tips to avoid being scammed
- Taking the time is the most effective way to stop investing with fraudulent brokers. Don’t make hasty choices. Consider all of the advantages and disadvantages first. Finding a trustworthy forex broker is not easy, but it is time worth spent. When you come across a forex broker or agency, the first thing you can do is search for their company name on Google and go through the results, see for any incident or appreciated posted by traders.
- Look for reliable consumer feedback. You should avoid the service provider if there are none or if they seem fictional. You can also read scam reports to see whether a forex broker is as trustworthy as they say. Also, check to see if the broker is the subject of any pending court proceedings.
- Is it possible to make money quickly? Certainly not! I don’t believe anybody who says that making money with a “20% profit per month” is easy. It’s complete nonsense since profitable forex and CFD (contract for difference) trading requires a significant amount of screening time, training, patience, and quick wits. There is no easy money in this area.
- To find contradictions and irregularities in the broker’s terms, compare the regulatory authority’s rules with the words on the broker’s website. Consult a certified financial planner where you don’t trust your judgment or don’t have the time. Until signing with a broker, you may even request evidence of company registration. When opening an account, make sure to read all of the fine print. Scammers also use account incentives against traders when withdrawing funds.
- A few simple questions will help you figure out whether you’re working with a trustworthy broker or a forex con artist. Be sure you understand your rights, do background analysis on the contacts, and verify the company’s registration and business history. Keep in mind that you must collect all material from a prospective new broker in writing. Never put your confidence in promises made on the phone or in verbal statements as they may not always be accurate.
Use a licensed broker that is well-established, has positive online ratings, and is entirely consistent in its fees and enforcement policy to avoid being a victim of a scam. Of course, the attraction of fast money and simple cash will still be there, which is why you should make sure you fully understand what it takes to succeed at currency trading without relying on risky quick-fix schemes.