The fact that you can choose an online forex broker with a simple search is an amazing option for retail forex traders. However, the lack of regulatory bodies in the forex trading arena can lead to many fraud forex brokers who set up shop only to rob their clients. In addition to brokers that are out to make a quick buck there are others that have policies that are not suitable for their clients. It is difficult to know which one is more dangerous than the other since they both lead to large losses – one immediately and the other over time.

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Looking at Forex Broker Reviews

There are various ways in which you can safeguard yourself from falling into the hands of a fraud forex broker. The first thing that you should do is to check for reviews and testimonials on specific forex brokers. This can be done over the internet but keep in mind that paid reviews and testimonials are not uncommon in today’s world. Choosing a forum where you can discuss the strengths and weaknesses of a forex broker is a much better option.

Here too, make sure that you do not fall prey to comments that are made by disgruntled forex traders. See more about this on plus500 scam. There are many traders that lose money due to decisions that they have taken and they tend to blame it on the forex broker since they are looking for a scape goat. Comments such as ‘the markets always fall as soon as I placed the order’ or ‘slippages were never in my favor’ are comments that do not reflect on the efficacy of the forex broker.

Learn to sift the comments in order to find the genuine reviews and comments before making your decision.

Important Checks for Forex Brokers

It is essential that you ascertain certain available features offered by the broker before taking any significant steps towards signing on. Here are some of them.

• Is there an option to open a mini account or an account with minimum deposit? Use this account to place a few trades and withdraw your monies. Once you are sure that the withdrawal methods are genuine and easy to use, you will feel relieved about having easy access to your money.
  

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• Always  reading the fine print in the contract. Boring as it may seem, you need to read every word of the contract and understand the provisions offered by the broker.  Some incentives have caveats that will cause problems in withdrawing money. For example, if you have received bonus on opening an account and lost some funds, you may be allowed to access your money on the pretext that the funds have bonus amount included.

• Choose to work only with forex brokers that are registered with the financial authorities to ensure that they manage their accounts and funds well and that they have the required financial backing.

Helpful Article:

http://en.wikipedia.org/wiki/Foreign_exchange_fraud

http://www.cftc.gov/opa/enf98/opaforexa15.htm

This entry was posted on Wednesday, October 2nd, 2013 at 6:46 am and is filed under Forex, Forex Scams. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.