The forex market is growing day by day, and it wonders the world with the last decade. By analysis, thousands of traders deploy forex strategy for a bright future. But the, where several new traders are attracting toward forex, the scammers’ rate is increasing in the same way.
So, beware of scammers is crucial for new traders, but how to avoid forex trading scams? Let’s have a look over the ways to avoid scams.
Forex brokers
As the forex market increased, the number of forex brokers has grown respectively. Some brokers show fake regulations and license numbers for deceiving new traders. So. It’s very important to know the difference between an authentic one and a scammer. However, many brokers with no deposit bonus show their authenticity by showing their regulatory certificates and honest reviews.
Check out the following aspects of a reliable forex broker
- Is the broker regulated?
Before making any decision, do a proper investigation about its regulation. Regulated forex provides the complete risk disclaimers and regulatory information at the bottom of website pages. They also have honey reviews, so you can also get ideas. Moreover, brokers claiming to be regulated inspect their regulatory entities whether these are legitimate and trustworthy or scammers.
International legitimate regulatory entities and sector may sector Financial Service Conduct Authority (FSCA), Financial Service Agency FSA), Australian Securities and Investment Commissions (ASIC), Cyprus Securities and Investment Commissions (CySEC), Financial Market Authority (FMA), and so on.
When traders make an account a well-regulated forex broker, their investment will be in safe hands as these above Security entities avoid any kind of fool play. If you find any scammer, stay away. And you may know about fake companies by the annual research evaluation.
Furthermore, if you can find authentic information about any broker’s reviews, executing team, location, website, history or financial data then avoid them.
- Is a broker offering rewards and bonuses for opening an account?
On many brokers’ websites, you may read the ads like “make $100 per day $500 Investment”, “make 75% returns on profits signals”, or “95% success rate”. Remember one thing, any broker that offers you such rewards or bonuses while opening an account, will be a scammer. You may see the statements like “win a car by opening an account”, but you do not.
Any forex broker never offers such big rewards or binary options to their clients. So, beware of them and save your money.
- Double-check cited awards
Most scammers cited big awards on their websites that are not true. It’s hard to find out the information of beyond 4 years there they may put data like “best signal provided award 2015” via any unreliable outlet. So, double-check cited awards.
Bottom line
However, it’s required proper research and knowledge about brokers to find out the legitimate one. You can concern with successful and professional trade in this case. But before opening an account, double-check a certain broker; if it proves reliable, then make high investments.
