Online Forex Trading Broker – Sure Way To Recognize A Fake Broker
If you have learnt forex trading for a while, you should know that putting your money on a local forex broker that apply unbelievably high spread is a fatal mistake; place it in an online forex trading broker is wiser decision. They employ much lower spread, zero commissions, and allow various types of automatic trading systems.
Of course, selecting an online forex trading broker is not as easy as comparing their benefits. Many of them are merely dishonest brokerage whose only goal is drain your fund as quickly as possible and their common strategy is lure prospects with sugary promises and rewards. If you wish to survive long enough in forex trading, watch out for these in your online forex trading broker before you make decision:
1. Listed as a Member of a Financial Authority
This is the simplest way to check them out. Ask their live support exactly where they’re registered; is it in the FSA? Is it in NFA? Is it some other financial authority? Enter their live chat/mail support and ask for the link to their official registration page; if an online forex trading broker won’t give you that, it is very likely that they’re not registered anywhere and it is a sign for you to leave the site right away. For example, read AvaFX review to check their register within the FSA and Ireland Financial Regulator.
When you’ve acquired the link, read the entire page thoroughly as sometimes there are cases where the broker registered as inactive member. For example: during the time I wrote this article, FXCBS is registered with the Dubai Gold and Commodities Exchange, but they’re listed as an inactive member there.
Additionally, you should check whether that online forex trading broker is blacklisted by any particular financial authority or not. For instance: both CySEC (Cyprus Securities and Exchange Commission) and UK FSA (Financial Services Authority) have issued warning against Forexyard.
Of course, being officially registered doesn’t mean they’re honest brokers, but it is a good start.
2. Unsolicited Offers
Be careful if you know the online forex trading broker via unsolicited fax or email, especially if they are:
- Seem too good to be true.
- Profits guarantee; all trade in the forex market always has loss potential, so be careful with any high profit promise.
- Trying to have you send your money RIGHT NOW with one-time-offer or other means, but this is only a trick so you don’t have the time to investigate their company.
After you pick your online forex trading broker, don’t let your guard down yet; watch for these points:
1. Deposit and Withdrawal
Deposit your fund always a smooth process, but you may not have the same leisure in withdrawal case. If your broker makes the process more complicated that it has to be, prolonging the withdrawal, or even ignoring you, then you’re in the hand of a scam forex broker.
2. How they Handle Problems
Usually, you’ll find their support staff is really friendly and willing to help for regular questions, but when bigger problem occur, you can see their real professionalism. If they keep giving you empty promise, keeping your money, or even completely ignore you, then they’re scam forex broker.
You might wonder why I don’t suggest looking at forums for thoughts about a particular online forex trading broker, but I have good reasons not to do so. Forums are place where everybody can post their opinions, so it is very unlikely to find 100% unbiased argument there as a fake forex broker can pay someone to post fake positive reviews; on the other hand, their rivals can also post negative reviews to damage the broker’s reputation.
The other reason is there are always novices who would blame their broker for their loses and start posting bad things about the broker everywhere while the clients who have received good services won’t even bother to post on forums. This is may not entirely their fault; maybe it is connection issues at a bad time, but nevertheless you’ll read posts about “my broker cut the connection and my profit” and “my platform freeze at an important time” throughout any forex forums.
Please note that I’m not against using forums for information source. I’m simply pointing that there are too many inaccurate information regarding forex broker in the forums, but if you’re looking for other info such as trading strategies or discussing experiences, forums are a good place. In fact, there is an online forex broker with great forum and community; check them out here.
Looking for an honest online forex trading broker isn’t a simple task and you may have to devote some time for research, but the result can save you from greater problems in the future. Later when you’ve found one that can meet your expectation, all that you need is a efficient trading system and you will have your income from the forex market soon. Visit top forex broker for a list of recommended online forex trading broker.
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Many Traders are Toppled by Scam Brokerages, Don’t Be One of Them!
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Despite your effort to find a trading system that works, all will be in vain if your broker CHEATS on you: ignore your stop loss, delay your order execution, disconnected when the market condition is good, etc. I highly recommend AvaFX as one of the most TRUSTED online forex broker.
AvaFX has high leverage, allows forex robot, low fixed spread, multi lingual customer support, trusted bank to deposit client’s fund, MT4 trading platform, and secure website for your trading convenience. |