The FX Market is no doubt the largest financial market in the world with over 5 trillion available to trade every day.
With this whooping amount available in the forex market, you don’t need a detector to know that scammers/thieves would be parading to steal from people. These scammers can be in the form of Forex Brokers among other means.
In this article, we’ll learn about how to find an authentic forex brokers. Let’s get right into it.
What is the Meaning of Forex Broker?
A forex broker is a financial services company that provides traders access to a platform for buying and selling foreign currencies. Forex is short for foreign exchange. Transactions in the forex market are always between a pair of two different currencies. There are over 100 currencies to trade in the FX market.
The forex market has been around for many years and as long as the online platforms continue to run, so will malicious, online threats.
Scammers are everywhere online so as consumers we need to take some preventative measures to ensure we do not fall foul.
In a crowded marketplace, it can be difficult to choose a broker we are happy with and more importantly, one that is genuine. The aim of looking for a broker should be to find one that one is genuine and will take care of you as a customer!
How to Avoid Scammers in the Form of Forex Brokers
- Look for brokers on accredited websites that are in the ‘Safe Broker’ sections.
- Find out what sort of relationship you will have with the broker or how many contacts you can be exposed to if needed.
- Have a conversation or open a dialogue with the broker to test transparency.
- Do some research online into other users’ past experiences. There could be news releases detailing any wrongdoing, sanctions or ongoing litigation.
- Before choosing a broker, shop around before you decide to commit and deposit to one.
- Visit the site: Many Forex sites have reviews of brokers on their pages. Read the reviews from other readers. Look for affiliate links as well. If you see links from review sites and they lead directly to the broker site, this is a good indication that the site is upfront about affiliation.
- Read the small print!
- If you have already signed up to a broker site ensure you check statements regularly as in lots traded, deposits in and out – as well as account balances. If there are discrepancies then address this with your broker.
How to Find an Authentic Forex Broker
Listed below are various ways by which you can find a genuine forex broker.
1.Test the Broker
If you are really sold on a broker’s product features yet you are feeling skeptical about the legitimacy of the broker, then submit a small deposit. You can test the platform with a small trade with low lot sizes and then request a withdrawal. There is no real reason why a broker should hold onto your funds.
When withdrawals are at a snail’s pace and you have to follow up with the broker to release funds, this is usually a telltale sign that the broker is not transparent with its clients.
2. Check if the broker delivers on its promises
Take a look at the site’s FAQs and information pages and see if they have any SLA such as offering withdrawals within 48 hours.
You can then test this SLA by looking to deposit small and then withdraw. Test how easy the process is it to get Liquidity in and out of a broker.
If the broker stays in line with its SLA then you can rest easy that the broker is committed to keeping promises to its clients.
This will help you feel assured and be more trusting in depositing larger amounts, knowing that your broker will give you back what is rightly yours.
3. Check if the customer team support is always available
Take a look at the site and see the range of customer service features a site has. Do they offer 24/7 support to assist you whenever you may need it?
Being always available for their clients shows you that a broker is committed to their clients and will do all they can to make themselves available to their clients.
If a broker has multiple ways for consumers to get in touch then this can be considered a plus. But be sure to test out this theory.
It is often the case that brokers have a LiveChat feature within their sites. Before depositing into the broker, test them. Talk to an agent and ask them some questions surrounding their withdrawal speeds and how easily you can get funds back.
Are you talking to a robot or a real person? You will quickly be able to tell.
Potential traders can also get a feel of how punctual, knowledgeable and caring a site’s support team is – based on their client relations.
It may be that a platform has a call back feature which you can test as well. Brokers show great flexibility with this feature as you can pencil in a conversation when it suits you.
Forex scams will be around for as long as the Forex market exists. As schemes are evolving, scammers are always somewhere nearby, trying to steal your money. You, therefore, need to be on guard when involved in the FX Market which goes as far as choosing a trustworthy broker.