There are many brokers in the FOREX trade, which you can trade, but it is necessary to be aware of any kind of scam. You can get scammed if you do not pay attention to any kind of warning sign.
There are many reasons why you shouldn’t trust every broker or trade platform you see , especially if they’re not offering enough in terms of features or they are incompetently operated. A lot of these brokers are managed by scammers, people that are there to rob you.
You need to learn how to identify the warning signs to be able to predict if the broker you are using or the broker you are about to use is a scam.
- One thing that is common to see is that they will manipulate prices and expiration times; it’s one of the most seen tactics. It happens a lot; you are in a trade and a sign appears saying that is set to expire in a few moments. So, when you are about to close the deal, the clock stop and the time expires (even though the ending time already passed).
Clearly, what is going to happen is that the broker will say that it is an error and they will show you terms where it says that they are not responsible for loses and that there is nothing they can do to give you a true solution to your problem. Of course, sometimes that can be a mistake, but you need to be aware of it.
And, like that, you will know if it is scam.
- They will try to sell you some inoperable alert services and systems that you don’t really need.
- The most noticeable alert for scams is when they try to refuse to pay out your money; this usually happens when you try to withdraw your money but the broker will give you a runaround.
Then, you will find yourself going through so many complicated terms which you will be unable to meet or to do. Or, the broker will just ignore your withdrawal appeal and it will conceivably disappear after taking your money.
Trying to understand real scamming.
It is fundamental to search for real and trustable reviews of the broker you are about to use, always trying to know in which one of them you should believe.
Sometimes, you will find traders that will make bad reviews just because they lose some money trading over their own failed trading strategies. That’s a type of review you need to be on the lookout for.
Sometimes, other brokers will write bad reviews just to find more customers for their own company. It’s vital to remember that any trader, at any moment, can become a broker and they will do anything to give exposition to their trading platform.
There are other problems that could turn a normal broker into what seems like a scam broker; for example, sometimes there is a bad communication between the trader and the broker and that will affect the way that the broker works and how the trading goes on.
It is actually really easy to know when your broker’s communication is breaking down. When you are the trader, you will be sending them messages and emails but your broker won’t respond or will provide you some really imprecise and unclear answers to your questions.
Every time you decide to open an account in a broker, it’s necessary to read the fine print and always be sure to understand all exigencies in the contract, this way, you won’t get any bad surprise in a future. Also, do your research.
Once you finish making your research and you feel satisfied with it, you can open an account with a really small amount of capital (especially if you are new in the trading business, because it is not a good idea to risk a lot of your money).
Trade for a few months or at least for one month and, if everything goes well, it should be safer to deposit more money on that trader.
The scams are a really dangerous thing, because it will make you lose big money, so it is necessary that, before you make the decision of investing in a FOREX broker, you had made a profound investigation to be sure that the site where you are putting your money is a safe place.
Don’t hurry just because you are trying to make money in a quick way, because this could cost you more than what you are willing to invest. Take a seat and do things in a good and safe way.