Around 99% of Forex broker scams involve a company or individual that has never registered with a regulatory body. You should look for signs of this, including a website that does not offer customer support or a contact number. Then, ask for proof of registration. This is the only way to determine whether a Forex broker is reputable or not. This way, you can protect yourself from the risk of being scammed. These brokers will not provide you with any financial advice and will be able to give you some advice on how to avoid becoming a victim of one.
What Is Forex Broker Scam?
If a forex broker claims that they can help you achieve trading success, you should be wary. A scam broker will provide “proof” of their trading results, often in the form of trend charts, testimonials, or “case studies.” Typically, these sites will invite you to join their signal service for a fee, and will often even encourage you to subscribe to their signal service. These scammers will be highly unlikely to provide you with any profit-making signals and are instead simply buying and selling large volumes of currency pairs for a high brokerage commission.
Another sign of a scam broker is their failure to provide customer service. A broker with poor customer service is likely to lack a good reputation and may not provide excellent support. The broker’s bank account will be unable to handle your funds. If the broker fails, you will end up paying your money to a third party.
How To Avoid The Forex Broker Scam?
There are numerous ways to identify a forex broker scammer. The easiest way to spot forex broker scams is to check for positive reviews on reputable review sites. If you find a complaint, contact the person who posted it. He or she may just be confused and not aware of the scam, and the review site should be unbiased.
If a forex broker has a website, check to see if the contact information of the scammer is on the page. A legitimate broker will display their contact details on their website. Be wary of fake websites that have no contact information at all. Then, you can research the brokers that have positive reviews online. The more reviews you find, the better.
Be sure to check the company’s age and physical address before signing with them. A broker that has no physical address, no name, or no registration with the CFTC or NFA should not be trusted. A scammy broker will take advantage of your lack of knowledge and will screw your investment up. It’s best to avoid scams by checking the registration of the forex broker with a regulating body. The CFTC and NFA regulates foreign and domestic forex brokers, and they are both dedicated to protecting the public from unfair trading practices. If the company has a license, it’s a good idea to sign up with both. Otherwise, it’s best to stay away from any new Forex broker that doesn’t have a regulatory body.
Few Words More
Beware of forex broker scams that involve offshore retail brokers. These brokers don’t have to be regulated by the CFTC or NFA, and can disappear with your money when confronted. Nonetheless, if a broker is not regulated, it may be a scam. It’s best to be careful with your money. Despite these warnings, it’s crucial to avoid any potential scams by reading the fine print on each website.