How to avoid forex scams?
- Thread starter Rambo35
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Hi,
one of the ways that you can protect yourself (to a certain extent) is to use a brokerage that has regulatory status - so for instance anything which is FINMA or FCA approved.
AND, here's a fun one, look out for the words registered and regulated.
regulated = good
registered = not so good
for companies which are going the FCA route registered is not the same as regulated.
You can also google the word scam followed by the brokerage name.
Hope this helps someone,
Paul.
one of the ways that you can protect yourself (to a certain extent) is to use a brokerage that has regulatory status - so for instance anything which is FINMA or FCA approved.
AND, here's a fun one, look out for the words registered and regulated.
regulated = good
registered = not so good
for companies which are going the FCA route registered is not the same as regulated.
You can also google the word scam followed by the brokerage name.
Hope this helps someone,
Paul.
No regulation, big leverage, bad reviews, enormous bonuses, unclear T&C, location in tax havens are in my opinion main signs of scam company.
Hey guys!
I am partly agree with all of ya...No regulation is not always a sign of a scammer..of course it is like that a company is a scammer but there are many happy exceptions...Big leverage - yes, here I'm agree for 100%.. bonuses - sometimes its just a unprofitable marketing move that companies make to attract new customers. Location in tax havens are not always a sign of bad brokers since there are a lot of companies where to open a company u need to spend many years. Bad reviews could be because of angry competitors...the point I'm trying to say is that you better listen what others say and make a research but the choice u need to make is just urs. I've made mine - NAS Broker is right broker for me for sure
I am partly agree with all of ya...No regulation is not always a sign of a scammer..of course it is like that a company is a scammer but there are many happy exceptions...Big leverage - yes, here I'm agree for 100%.. bonuses - sometimes its just a unprofitable marketing move that companies make to attract new customers. Location in tax havens are not always a sign of bad brokers since there are a lot of companies where to open a company u need to spend many years. Bad reviews could be because of angry competitors...the point I'm trying to say is that you better listen what others say and make a research but the choice u need to make is just urs. I've made mine - NAS Broker is right broker for me for sure
Yeah, we have to becareful about those such broker who always scamming us..
I recommended to trade in Liteforex broker, They never against its client to make profit there. Lite is really hold all their words and very very fair broker. I can said like this because I've trade with more than 6 years..
I recommended to trade in Liteforex broker, They never against its client to make profit there. Lite is really hold all their words and very very fair broker. I can said like this because I've trade with more than 6 years..
Simple: Do the research..when something sounds too good to be true, it often is..
For example, there's one broker who keeps spamming the forums with "No deposit bonus", this is a take on legitimate promo by a few other brokers. The catch, the scam broker requires you to wire funds to activate your account and claim thousand USD in free money and you can work out the rest. The broker's website has since been taken down but the above is just an idea of the sort of bait you're bound to come across online..
For example, there's one broker who keeps spamming the forums with "No deposit bonus", this is a take on legitimate promo by a few other brokers. The catch, the scam broker requires you to wire funds to activate your account and claim thousand USD in free money and you can work out the rest. The broker's website has since been taken down but the above is just an idea of the sort of bait you're bound to come across online..
Yeah there are plenty publicly avaliable resources for that - babypips, forexfactory, forexpeacearmy, earnforex. Googling feedback of your broker on every of these sites will give you a good picture of broker reliability and safety. But remeber that last decision is up to you, because one trader can blow up there, while another become one of the most successful. So take it with a grain of criticism..
i guess it can be said its easy now a days to avoid scam brokers, first of all follow simple steps
one check for regulations, no matter how small the regulation are as long as its regulated its an indication of the brokers attempting to stay registered and its way better than un regulated broker
another thing is check review at sites such as of course here at earn, and forexpeacearmy, all brokers have issues but its boils down to how they handle it, there is no perfect broker
then check the track of the broker how well has it been doing for the past 2-5 years.
it takes only little research to know a brokers wellness.. and never jump at first site of a good offer, thats like the oldest trick in the book. bonuses are good but always do research for prevention
one check for regulations, no matter how small the regulation are as long as its regulated its an indication of the brokers attempting to stay registered and its way better than un regulated broker
another thing is check review at sites such as of course here at earn, and forexpeacearmy, all brokers have issues but its boils down to how they handle it, there is no perfect broker
then check the track of the broker how well has it been doing for the past 2-5 years.
it takes only little research to know a brokers wellness.. and never jump at first site of a good offer, thats like the oldest trick in the book. bonuses are good but always do research for prevention
It's not an easy task to spot broker scam as it becomes visible when you become profitable trader. They start to charge your orders with excessive slippage, provide quotes full of gap, i.e. simulating lack of liquidity where normal trading is impossible. So recognizing scams is only possible by negative experience of profitable traders, practically no other means for that.
I run with these method, deep research before decide open our account with brokers company. and one for sure diversity is an important option too, open account with several decent brokers company in order to maximize trading result. and I still use Tickmill ECN account as primary use for trading, by having check with their FPA rating, user review on several forum, including myfxbook brokers page. and my first attempt is test deposit, to had clear view about their trading condition, any off market situation in real trading practice. now already pas 2 years held my account with them, and got special condition 3.8$ round turn commission which I see as great advantage since my trading as more scalping-intraday type.
Guys....its hard to find good broker for me. Who can recommend a safe one. Who use which. Can you share please. Thanks a lot
Do they have volume plan on comission reduction or it was done by your personal inquiry?
What would you advice - classic or ECN account for scalping on jeppy?
just got these commision cut when move into some kind IB cashback program, there's someone at FPA offer me such discount. I dont quite clear with the detail, all i do is just email TM support and ask for move into some IB account assignment (with one who pm me at FPA).
for scalping purpose, no doubt tickmill ECN are one you should choose.
will check with their support later on, TM commision charged low. checking on google search there's lot of similar offering though. as account type seem most of people favor ECN account type, but I also think of getting low fix spread too (doesnt mind if there's under 1 pips fix service). non fixed spread as ECN often had wider spread improvement sometimes, even so the initial spread are extremely low. did they also happen to had such condition, I dont seek for perfect one but an honest one would be great.
That's right. I use freshforex, it is mached with all of the requirements above, but I guess it's mpossible to find perfect broker. Alpari was OK as well and worked for a long time, but it's a bankrupt.
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