Forex trading is an industry dedicated to trading various currencies, and these trades average trillions of dollars every single day. This type of trading can be done anytime you want in any corner of the world, so the market formed by it is by far the largest in the world. Globalization has affected this industry in a very significant way because we now travel to other corners of the world more often than ever and we can easily purchase goods from other countries, thanks to the wonders of modern technology. As a consequence, we need to exchange currencies more than ever, too, but this does not apply only to individuals – huge companies, particularly banks, also have an interest here, since buying a currency can prove to be a lucrative investment.
Foreign exchange belongs to the so called over-the-counter type of trading, meaning that there is no need for an intermediary. Everything is done directly between the two parties involved. However, you will need a broker to gain access to the forex market, and since there are literally millions of traders trading here every day, it should come as no surprise that the brokers are pretty numerous, as well. Choosing one of these companies is a very important step because all your investments will go through them, so if you choose one of the forex scam brokers, you might be in serious trouble, especially if you decide to invest a lot. Luckily, here at ForexScamBuster.com you can find out all about these companies. Here are some general tips about protecting yourself on the market.
Forex Scam Brokers | Scammers
Informing yourself thoroughly is your best defense. Since the way this industry functions is not new, you can get a lot of feedback from other traders online and reliable brokers have already established themselves in the trading community. Forex scam brokers are also fairly well known by now, although new ones still keep popping up, so a degree of caution is always needed. The cases of Refco Inc. and Crown Forex are pretty good examples of what can happen if forex scam brokers are not detected on time, as they show just how big an impact these kinds of scams can have. Among more recent brokers, some serious accusations against forexsignum.com and FX Capital Bank can be found, so you might want to think again if you decide to pick these as your forex broker.
We are familiar with cases where the broker seems perfectly legitimate until you want to make a withdrawal of your hard-earned funds and the procedure is, quite simply, denied to you, so you have no way of accessing the money. Some of these forex scam brokers simply cease talking to you without any prior notice, so you are left unable to trace their whereabouts. Globus Capital Limited seems to have caused quite the uproar last year by doing precisely this, and you can find a lot of disappointed traders online trying to get their money back. This is why ForexScamBuster.com should be your source of information, as we have the most relevant info and can help you pick the Best forex brokers. This way, you can invest without any fear and preserve your money.
Forex Scam Brokers | Spotting a scammer
So how can you spot forex scam brokers before investing your money? It’s actually not that difficult. First of all, you will want to see whether or not your prospective broker is regulated by Commodity Futures Trading Commission (CFTC) or the National Futures Association (NFA). These two institutions were vital in bringing forex scam numbers down significantly over the last decade or so, and if a broker is regulated by them, the chances are it checks out. Other regulatory agencies can also help you, depending on a broker’s country of origin, so making sure that your broker is regulated no matter where its headquarters is should be your number one priority.
As for the types of forex scam brokers, some robot sellers will try to justify unusually high prices of their products by saying their systems have high accuracy and that you can expect huge. Be very careful when dealing with people like that and keep in mind that an average price for a trading system is usually a few hundred dollars. The so called commingling of funds is also an issue in the industry because the accounts in this case are not segregated and you have no way of knowing how your investment did. But in the industry in general, an overwhelming majority of brokers and people who offer their services are completely legit and honest. Furthermore, you have ForexScamBuster.com to help you make the right call when selecting a broker.
Forex Scam Brokers | Protection
In short, information is what protects all traders in this industry. If you know your broker is regulated, it’s most likely genuine. Community feedback can also be quite helpful when researching a brokerage because traders can often provide you with a lot of details which can help you make your decision. Communication with a broker is also very important, as fake brokers tend not to communicate with their clients and are not ready to provide any additional support. Therefore, testing their customer service is often a very good idea. Generally speaking, forex scam brokers are not that hard to detect. Just keep your eyes open for anything suspicious and you’ll be fine. Playing it safe is what this is all about. Education can also help you a lot because you’ll know what the standards in this industry are, and you can learn all about it in our Forex Beginners Guide. If you’re still new to this type of trading, this is the place to visit.
Forex Scam Brokers | Conclusion
To wrap things up, we would just like to emphasize that forex scam brokers are a very minor part of this industry. There is a huge number of legitimate brokers out there waiting to offer their services to you and ForexScamBuster.com will help you make the right decision. We cannot say that forex scam brokers do not exist, though, but with some caution all problems can be easily avoided. Forex trading is a very powerful industry for a good reason, and it certainly has a lot to offer to every trader who decides to trade there and we will help you make the first step towards becoming a successful trader.