Forex markets trade in trillion dollars every day. The market is full of traders from around the world who are looking for the best way to earn a passive income in this fast-paced lifestyle. However, the increased flow of brokers and new companies turning up every day makes it difficult for the traders to differentiate the legitimate brokers from that of a scam. As a trader, the readers must note that it is your duty to research and stay away from potential scammers. In this article, we will be providing you with several pointers that will help you in this research to stay away from scammers.
Broker and it’s Regulation:
Unregulated brokers do have a supervising authority over them. This implies that unregulated brokers are not answerable or accountable to the government. To avoid falling into the traps of an unregulated broker, you must check if the said broker has a license. If there is a license issued by a regulation under this broker’s name, this means that it is regulated. To check for the regulation, you can either visit their about us section or scroll to the bottom of their website.
If you are unable to find a license on the website of the broker, there is a high probability that the broker does not have a license and is a potential scam.
Regulation and its Legitimacy:
Another thing to be sure of while checking for a license is the legitimacy and the standard of the regulation that has issued the license. If the license is issued by regulations like that of Saint Vincent and the Grenadines. For those of you who are new to this trading market, Saint Vincent and the Grenadines is an offshore zone that has been deemed unfit to regulate brokers. Therefore, this place has become a hub for scam brokers. However, if the broker is regulated by regulations such as the Australian Securities and Investment Commission, commonly known as ASIC, or the Financial Conduct Authority, commonly known as FCA (UK), you do not have to worry at all. Regulations like the ASIC and the FCA are the top-tier regulators in the market. They are considered the most trustworthy and therefore, the brokers that fall under their supervision are also legitimate.
Profits and Rewards for opening an account:
Is the broker making claims like getting a $50 daily return on an investment or 99% success rates on their trade? If your answer to this question is yes, then brace yourself for the scam you are surrounded by. Scam brokers often use this tactic of manipulating the potential victims through false claims. Make sure to stay away from the brokers who follow a similar pattern of advertising.
Cash Bonus for Extra Rewards:
Scam brokers can go to any extent to lure the victims in. From emotional \manipulation to mentally pressurizing the victims, the scam brokers are dangerous. If the broker you are looking into offers a special scheme wherein if you invest an extra amount of money into a certain investment, the returns will be doubled. You must note that this is a complete scam and stay away from such potential scam brokers.
Always remember, a little caution on your behalf will help you avoid months of fighting with the scam broker to claim your money. Be Aware and Stay Safe!
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