How to Spot a Scam Forex Broker?
Forex brokers are the traders who promise greater than average gains. But, since they’re in charge of managing these accounts, they can do whatever they want with your money. The scammers take advantage of this fact and offer you fake returns that are too good to be true and forex trading bonuses that are exceptionally high.
Identifying a Scam Forex Broker
This article will discuss how to know when a forex broker is legit and what you should watch for throughout their process. Keep an eye out for these warning signs so you never get taken by a scammer!
1. Your Forex Broker Doesn’t Have a License
Forex brokers rely on a two-part verification system to protect their clients. First, they must be registered with the appropriate regulatory agency – the Financial Conduct Authority in the UK and the Commodity Futures Trading Commission in the USA. They must also meet specific criteria set by these agencies.
2. Your Forex Broker Uses Any of These Words
In any legitimate brokerage, they will always use their own name. In fact, this is required by most authorities around the world to ensure that you know who you’re dealing with and that you can trust them with your money. Signup incentives for forex platforms are real but you should be active when you start getting unrealistic offers from your broker.
3. Your Forex Broker Offers Fake Returns
The best way to find out if a forex broker is legitimate or not; is to look at their offer. If it sounds too good to be true, then it probably is. Always check the exact percentage they’re offering you on your trades and compare that with other offers. Avoid any broker that promises more than 2% above the current rates of major currencies around the world.
4. Your Forex Broker Shows Fake Trades
Scammers will also use fake trades to make you think they’re legit. But, there are a few ways you can detect these scam brokers. First, check for a spell checker. The best scammers know English very well and usually make spelling mistakes in their emails to potential customers. However, the grammar and sentence structure won’t be perfect in many cases either.
5. Your Forex Broker Has a Generic Email Address
Legitimate brokers always have a very specific email address that tells you exactly who is sending it to you and what they do for a living. The best brokers have a legit address similar to [email protected] Check if their emails have been sent from domains you’ve never heard of, or from a free email account.
6. Your Forex Broker Spams You with Emails
Most legitimate brokers send you emails about monthly, quarterly, and yearly performance reports and trades that they recommend for your account. They won’t go out of their way to contact you at all times. It’s a good idea to watch your mailbox for new messages every few weeks if you want to stay in touch with your broker. If all these messages come from the same person or company, it could be a scammer.
7. Your Forex Broker Asks for Your Money
The best brokers never take money without giving you something in return. If they ask for your deposit, invest it elsewhere. It’s likely that they want to scam you. Forex no deposit bonus deals can make your trade worth it only if you are dealing with a trusted broker.
It’s always better to move your funds into an auto trading program that can trade for you 24/7. There are plenty of legit programs out there that will never ask for your money, so don’t take the risk with a broker who could be trying to scam you!
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Be Safe in Forex Market
The Forex market is a fascinating market, and it allows people to be involved in important events around the world. Professional day traders who typically trade in a consistent manner throughout the trading day make millions of dollars per year.
They have a strong understanding of current trends and identify opportunities before most other investors would even know they existed because they have been actively focused on financial markets for years. You need to be aware of the scams and frauds in the market.