The forex market offers lucrative opportunities that attract both traders and crooks. A lot of forex brokers are trying to woo customers with catchy adverts and a bonanza. How to choose the right forex broker to become a successful trader but not to fall prey to monkey business?

What is forex scam?

A scam means a dishonest scheme for swindling people out of money. In the case of the currency market, fraud comes from a brokerage firm (dealing center) with a view to obtaining money by unlawful means. A scam refers both to fraud itself and a con broker.

Scams are divided into prearranged schemes and spontaneous situations. Both cases end up with the same trouble: a trader loses money forever and ever.

Scammers have invented a number of popular schemes:

  1. A trading platform frequently malfunctions, so technical faults entail losses. Among such snafus are daily slippage, cancellation of trades, lame excuses about lack of data or data corruption, etc. Of course, even reliable brokers have to deal with occasional technical glitches. Nevertheless, if it turns out that problems occur mainly with profitable trades and a broker gives flimsy excuses, this is food for thought.
  2. A broker delays or rejects your money withdrawal without giving a valid reason.
  3. A broker’s business is based on a Ponzi scheme when investors receive returns raised from funds of later investors.
  4. At the same time, there could be objective causes such as insolvency arising from global changes in the market.

In either case, a con broker dumps clients, neglecting their phone calls and wriggling out its financial commitments.

How to avoid being hooked by forex scam

Sadly, there is no universal charm to protect you from fraud. Some con brokers even manage to ape a genuine broker. They keep on updating their websites and maintain some personnel.

Let us warn you of some features that expose scammers.

  1. An online trading broker must hold a license and post this information on its website. It would be wise to find a link and check the data on your own. A license issued by regulators of the US, the UK, the EU, or Australia (NFA, BVI, MiFID FCA, BaFin, or CySEC) is to the broker’s credit.
  2. Please check the website’s content. If a broker overuses such forceful marketing ploys as Mega, Super, Hot, 100%, and promises instant fat profits, it would rather strive to grab your deposit than create conditions for your earnings.
  3. Find out feedback from clients. Victims of forex scams are always eager to share their experience of losing money and they openly debunk con brokers.
  4. A broker rejects your withdrawals. This is the most compelling evidence of fraud. Should you encounter this problem, take out your investments as soon as possible. The underlying reason preceding such trouble is that reputable payment systems have terminated cooperation with the broker.
  5. Technological aspects could be a cause for alarm. Commonly, a scam broker bluffs traders, saying their accounts could be hacked and offering “ultimate protection”. Traders are induced to install “miraculous” software to allow technical support to prevent account hacking, to stop shady transactions, etc. Victims install seemingly harmless software on their PCs or gadgets, thus opening access to managing their funds that end up in losses. Even popular programs such as TeamViewer or QuickSupport entail severe consequences if swindlers take advantage of them.

How to choose reliable broker to trade with?

Make sure you choose a company with a name in the forex industry, positive feedback, and a license from a regulator. Reliable brokers always provide a valid link to a license like InstaForex does. Besides, take into account how long a financial brand has been present in the market. Try to evaluate availability and helpfulness of customer support.

Look through the website to check whether the broker cares about updates. A newsfeed, fresh analytical articles, calendars, announcements about achievements of the company and its partners prove that the broker is interested not only in new clients but also in their success. A weighty argument in favor of a broker is the fact that it has serious awards. For example, InstaForex has won a plentitude of international titles. Please get to know them on this webpage.

Reputable companies also arrange promo campaigns for traders but never guarantee sure-fire profits. They encourage active traders and partners, giving priority to long-term bonuses.

Deciding on a forex broker, remember that the best offer is not always the best solution. Forex scams widely use misleading tricks. Your investments need well-grounded decisions, so choose a company with long-lasting experience that obeys stringent regulatory rules and ensures 24/7 contact with traders. InstaForex is a fine example of a reliable broker that has won the trust of more than 7 million traders worldwide.

Reputable companies also arrange promo campaigns for traders but never guarantee sure-fire profits. They encourage active traders and partners, giving priority to long-term bonuses.

Deciding on a forex broker, remember that the best offer is not always the best solution. Forex scams widely use misleading tricks. Your investments need well-grounded decisions, so choose a company with long-lasting experience that obeys stringent regulatory rules and ensures 24/7 contact with traders. InstaForex is a fine example of a reliable broker that has won the trust of more than 7 million traders worldwide.