The forex market is growing day by day, and it has surprised the world in the last decade. By analysis, thousands of traders deploy forex strategies for earning potential profits. But, where several new traders are attracted to 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.
As the forex market increased, the number of forex brokers grew. Some brokers show fake regulations and license numbers to deceive new traders. So. It’s very important to know the difference between an authentic one and a scammer —however, many reliable brokers like a minimum deposit for Xm to start forex.
Check out the following features 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 to whether these are legitimate and trustworthy or scammers.
- Regulated entities
International legitimate regulatory entities and sectors 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 with a well-regulated forex broker, their investment will be in safe hands as these above Security entities avoid any fool play. If you find any scammer, stay away. And you may know about fake companies through 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, any broker who offers you 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.
Thoroughly review their award authentication.
Most scammers cited big awards on their websites that are not true. It’s hard to find out the information beyond 4 years. They may put data like “best signal provided award 2015” via any unreliable outlet. So, double-check cited awards.
However, proper research and knowledge about brokers are required to find 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.