Once an individual has decided to try their luck trading in Forex they are then faced with a decision as to which broker they should trade with. It is a common practice for unexperienced investors to scroll through forex trading online forums to gather information on any given broker before investing with them. Many of these forums are, however, littered with unreliable reviews that are incredibly far from the truth.
It is of paramount importance to acquire reliable information regarding the broker you choose to prevent the highly undesirable outcome of an investment failure, especially when considering that more than 90% of single investors fail to produce profitable trading operations.
Needless to say the fraudulent broker presents as an unimpeachable platform for trading and the inexperienced investor, understandably, may not be sufficiently knowledgeable to be able to see through the deceptive practices of such brokers.
A new investor should approach the market having undertaken sufficiently thorough preparation to enable them to recognise a potential fraud. Handing over your hard-earned money to a third party should not be embarked on lightly. The first step before trading to inform yourself on the markets and how to successfully trade on them is to source and commence a training course on how to trade on the stock markets that has sufficient provenance to create confidence in the information it imparts.
Scour the websites of the regulatory bodies, they are not all the same, and find out which ones truly watch over the interests of the investors and which ones only practice lip-service when it comes to preventing fraudulent activities. Look for any guidance that the regulator may provide to help you choose a good broker and avoid the bad.
There may be blacklists of brokers that have been the subject of complaints similar to the list on the website of the Financial Conduct Authority (FCA). Make sure that the regulator you think your broker is operating under is, not only a sufficiently robust regulator but is the regulator for all parts of the broker’s operation. Often the novice investor is moved from one platform to another on the pretence of moving to a VIP platform which is either, not regulated at all or regulated by a body that does not offer adequate protection. A taxing regulator will demand transparency and apply vigorous admission criteria to any broker wishing to join the roll. Vigilance will be applied throughout the time the broker is trading. Governments across the globe have made every effort to ensure that the management of financial markets is closely monitored and every step is taken to prevent frauds taking place.
Despite all these efforts, fraudulent brokers appear to thrive in less regulated environments and the investor must be extremely wary of trusting an account manager’s unsupported advice. Also, be particularly cautious if your initial trading repeatedly produces unprecedented levels of profit in the initial stages and crucially, before you have attempted to withdraw any of your profits.
The best way of trading at first, by way of a test, maybe to make small trades and withdraw some of your money if your trading is successful. Never allow yourself to be pressured into handing over more money than you are comfortable with, even if it appears that your trading account is doing very well. Most fraudulent brokers operate on a hit and run model and will try to make as much as they can out of you as quickly as they can before they can be caught. Markets do go up and down with alarming regularity, trading that goes up and up should be looked on with suspicion. Caution is the watchword.
If you have been scammed or suspect that your broker may not be straightforward for more information about how you can get your money back please email email@example.com or call 020 7183 9482