Is it a forex scam? In the front of a bewildering number of forex brokers online, forex beginners can’t help feeling worried. Then what’s a forex scam? A forex scam can be a fraud of making huge profits for traders, a failure to return money owed to traders, a lack of transparency in the price and execution of transactions, unresponsiveness to customer complaints, and the targeting of vulnerable individuals.
Maybe it’s not easy to figure out a forex scam, but we can still make a basic judgment from some aspects. Here are some easy tips for you as reference:
Forex Tip 1: Is it regulated?
Forex market is not that closely regulated. If the broker is regulated in your region, your investment will be protected by financial authority to some extent. If not, it’s more likely that you are not adequately protected.
Forex Tip 2: What’s the promise?
Forex beginners tend to be cheated by the promise of huge profits. In fact, this is what the forex beginner should watch out! It’s a common sign of a forex scam. A responsible broker will remind their traders of the risks involved in forex trading.
Forex Tip 3: What is provided?
Usually forex brokers will provide traders with trading tools, resources and some market information. Are all these provided easy to understand from websites? Before starting trading, it’s essential for forex beginners to know about the related knowledge via various ways.
Forex Tip 4: Are the fees transparent?
If the relevant fees clearly stated? Are the spreads for currency pairs fixed or not? In a forex scam, forex broker may offer a very low spread but widen it when the market is volatile.
Forex Tip 5: How is the client service?
Does the broker participate in open communication with their clients through any of the more established networks like Face book, Linked In or Twitter? Does the forex broker will response to your questions in time? The attitude to clients’ needs is an important indicator to tell the broker’s reliability.
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