Forex Trading: Ways to Avoid A Forex Broker
Forex trading has become an increasingly popular way to earning some extra cash. However, like any other popular programs, Forex trading has found people taking Forex broker scam advantage of the popularity by seeking the needs of people desperate to find for software that will help them earn bigger profits. While there are legitimate ways of providing Forex broker services, unfortunately, many people tend to fall prey to Forex broker scams as well, losing great deal of money instead. In order to avoid getting scammed, here are some ways to identify scams and avoid them.
The easiest way to go about identifying scams is to check if they broker is verified by the Forex regulatory body of your country, i.e. the US’ would be the National Futures Association (NFA), and the Commodity Futures Trading Commission (CFTC). Checking does not stop at ensuring that the logos of either bodies available on the website of the broker, but to contact the body as well if the broker is truly recognized under them.
A tell-tale sign of a scam is usually the promise of easy money. No matter how reputable the broker service appear to be, a true broker firm will recognize that there are many risks in Forex trading and that it takes much research and analysis to attain profit. This hint can be obvious in the form of absurdly high percentage of returns over a short period of time or discreet with reasonable amounts over a period of time. There can never be guarantee of earning a specific amount of profit in Forex trading because the market can become volatile.
You can also refer to Forex broker ratings to identify broker services that have been found reliable. This is a way for traders to share the ratings of their personal experiences with people on certain broker services, allowing people to acknowledge the average scores of broker scores over different criteria, like profitability, methods of trading, and so on. Forex broker ratings aim to provide honest ratings, and would indicate if certain ratings were submitted by the rated firm’s owner.