In the Forex market there are a huge number of brokers that offer their services. However, not all of them faithfully perform their obligations. We’ll show you how not to fall into the scammers’ clutches and choose a worthy broker.
So, how to protect yourself from Forex scams?
Every person wants to trade on favorable terms. Therefore, it’s not surprising that many traders choose brokers that offer the lowest fees for their services. The unscrupulous Forex brokers count on this, attracting customers with low spreads and commissions.
Think about what is more important to you: saving a few dollars or avoid the risks? Most likely, you’ll choose the latter. Therefore, when choosing a Forex broker, you should compare rates from several companies. If you see that the broker’s prices are frankly underestimated, think, may by it’s a scam. Look for information of this broker, customer reviews. If the broker does not inspire you with confidence, it’s better to give up his services.
Maintain a trading diary
Always keep a diary of your operations, so that if necessary you could to prove your innocence. The easiest way to keep records is to take a screenshot of each transaction of your trading account.
Trading diary useful to you including if you are the victim of incorrect fill in the details of entering/withdrawal funds operation. With this log you will be able to provide evidence in court if you decide to initiate a dispute with your Forex broker. Documentary evidence never hurt, so don’t be lazy to log commercial transactions.
If you have any dispute with your broker, do not be afraid to resort to legal measures. Most brokerage firms give in immediately when the client threatens them with a lawsuit. But if not, you can contact the Commodity Futures Trading Commission (CFTC) or the National Futures Associations (NFA).
The CFTC has a program of compensation which provides an impartial forum for the resolution of disputes between clients and offering services for trading commodity futures firms.
Develop good trading habits
Remember that trading in the foreign exchange market, it is the same work as everything else. You shouldn’t think that a broker can bring you a big profit without your participation. Those who promise you it is likely scams. You should be able to trade to earn in the Forex. You should develop good shopping habits, try different strategies. There is no another way to earn big money. Don’t count for instant profit. It may take several months until you will receive a steady income from trading.
It is known that regardless of how advanced your graphics software, regardless of how much time you put into searching for the right broker, no matter how complex the trading system, without proper discipline and skills, you will end up the loser.
It is very easy to put the blame on the broker, but it is only your choice. So do it consciously.