Fraud has always been a cloud of contention against arguments that propose forex as the new realm of the successful financial speculator. Surely nobody wants to have his dreams of success and prosperity crushed by a crook. Yet a forex trader is not defenseless against fraudsters: by just remaining updated and knowledgeable about certain key facts, it is possible to avoid all but the most unlikely forms of forex scams. So go get your forex demo and test your preferred broker as you scrutinize its safety score by the following criteria.
1. Trust regulated brokers only
It is crucial that as a beginner you stick to the regulated brokers and never try your luck too hard by trusting the competence of a firm whose only claim to legitimacy is the assurance of its owner or a marketing representative. Not all unregulated firms are run by crooks, but it is probably better to avoid any disappointment at the early stage of a forex career by beginning with the regulated firms. .
2. Always begin with a mini-account
If you trade with a firm which does not fully satisfy your expectations from a competent and reliable broker, it is a great idea to begin trading with a mini account, and to build up your position as you gain confidence in your skill and the honesty of your market maker. This approach does not eliminate the risk of fraud, but does reduce it considerably.
3. Always remain skeptical
Many people are inclined to affix the seal of credibility to any broker that seems to have a legitimate and professional-appearing website, and a competence marketing or sales team. But these two by no means imply any degree of safety from fraud. On the contrary, a committed fraudster will probably never shrink from making a meaningful investment in his marketing at the earlier stages of his operation in anticipation of the great profits that he expects to receive in the end.
4. Be flexible
There are a lot of forex brokers out there, and there’s no logic to the argument that you must trade with a particular broker. Retail forex brokerage is a very fluid and rapidly changing field. It is certainly the case that many more firms are popping up in comparison to those that are dying out, and that is your advantage. Make sure that you only trade with a firm that you believe in.
5. Do your research
The best way to avoid fraud and crooks is to ask questions. Due to the nature of their business, crooks do not always hire the most efficient customer support staff. If your questions are neglected or left answered, make sure that you do not waste much time with the broker. You have the upper hand, so keep looking until you find a really good company.
Forex software reviews have no relevance to fraud-evasion, but forex broker reviews do provide great value. Establish general guidelines, seek your preferred broker like a hunting dog in the forex jungle, and you will soon attain your aim.