Hundreds of forex platforms are available in the forex market, making trillions per day. It is
true that many traders search for the best forex platforms for trading that help them in the
entire forex trading process. Viewing the financial market scenario, we let to know that the
new forex brokers frequently take entry into the market, making it difficult for traders to
choose the best among them. It is very important to gather the information of the forex
broker before making the investment decision.
Forex Scam: What it Is?
Forex Scam is frequently happening in the forex market by alluring traders that they get a
good amount of returns or profits by trading in the foreign exchange market. Currency
trading is considered one of the most common forms of forex scamming in FX trading earlier
in 2008, as per the Michael Dunn of the U.S. Commodity Futures Trading Commission.
The foreign exchange market is based on a zero-sum game, which simply means that one
trader gains profits while another loses. The commission of the broker and other charges
are deducted from the trader’s returns that’s why the foreign exchange market considers a
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How To Avoid Forex Scams?
If you are looking to find the best forex brokers for trading, take your time and do deep
research before selecting anyone. One decision that can be turned into wrong might be
there are chances that you have to lose hard-earned money. Evaluate all the downsides and
upsides of a particular forex broker to keep yourself safe from scams. Finding a trustworthy
broker is quite challenging, as you won’t be able to identify which one is reliable. But
investing time in a reliable broker will give you the benefit in the long run.
Must consider the following points before choosing a Forex Broker:-
● First, google or research a particular forex broker.
● Read consumer reviews on Google as well as on reputable websites.
● Check out the broker’s official website to see whether it is available. If the website is
unavailable, that means someone is trying to allure you by giving false hopes.
● Never ever convinced with phone calls from forex brokers
● Cross-check whether the broker firm is registered or regulated with any authorized
● Cross-check the foundation year from that, you will get a vague idea of whether the
broker is reliable or not.
● Read the company policies, white paper, and last 5 years’ financial records or
Let’s understand in a better manner-
● Visit Forex forums and cross-check; if anyone has posted complaints about
withdrawal funds. If so, contact to the person who has posted the complaints.
● Also, see that the forex broker does not become a part of any unethical activity like
You must consider the aforementioned points while choosing a reliable forex broker, as it
will help you minimize your risk.
Ask Yourself Some Questions To Avoid Forex Scam?
You have the right to ask various questions from the forex broker because a set of questions
helps you to determine that you have chosen a reliable broker for investment. Keep in mind
that the information you have received from a prospective broker must be in written form.
Never ever trust any broker on phone calls or oral statements Cross check the company
registration number, phone numbers, and physical existence before selecting the broker.
We have mentioned some of the questions that helps you in choosing a broker: –
● Is the Forex platform regulated by an authorized body?
● If regulated, how reliable is the forex platform?
● Does the forex broker offer rewards, cash, or bonuses to create an account on the
forex trading platform?
● Does the broker offer trading signals, advanced technical analysis, or an automatic
● Does any authentic information available on the company’s official website, like
company history, balance sheets, and physical address?
● Does the forex trading platform award achievements?
● How is it easy to contact the customer support team of the forex platform?
● Can you connect with a forex broker through a phone call, skype or any social media
● Does the broker have a live chat platform?
If you don’t want to be a part of a forex scam, always choose a reliable and regulated broker
with a well-known reputation, good online reviews, and ratings. Moreover, the pricing
structure is transparent enough, as well as follows the legal terms and conditions. Don’t go
with brokers trying to convince you to double profits and easy cash, as it is a sign of a forex
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