Forex and scam protection methods are constantly evolving. But along with this, the frauds come up with new deception techniques. You need to remain extremely vigilant at every stage of your trading career.
There are several ways to trick an inexperienced trader. We will cover the main ones. Today we'll talk more about brokers-scammers.
How Scam Brokers Work
It’s not difficult to pretend to be a broker. Scammers create standard sites on free platforms, invest a little in advertising to be heard, and start collecting money from gullible traders.
Their methods of work are becoming more sophisticated and aggressive. Many scammers even set up a kind of call center to contact potential customers and force them to invest.
Signs of Fraudulent Brokers
It’s getting harder and harder to spot scammers but it is still possible. Search for the following signs:
- One-day website. Many scammers have created their sites just recently. Check the domain registration date.
- Lack of information in free access. Official brokers act as openly as possible. They provide their documents upon request or have them freely available on the website. In addition, real brokers provide the maximum amount of data on their trading terms and other services.
- Complete lack of reviews. This usually happens when the fraudster has just started his business. Any reliable brokerage company has reviews, both negative and positive.
- Too good reviews. To lure customers, scammers create many positive messages about their company on various resources. If everything seems too smooth, expect a catch.
- The terms are too attractive. The broker needs to make money. If the company gives everything to the client, it will simply go broke. If the terms seem too tempting, this should alert you.
How to Avoid Scam
Take the choice of a broker seriously. Your future profit and the safety of your funds depend on this.
- Give preference to companies that have been in the industry for over 10 years. Don't just take their word for it. Check the registration of their basic domain and the registration of the company itself.
- Look for reviews of the broker. Rate their quality. Do they seem too positive?
- Before sending money to a company, evaluate its support team. They should be friendly, professional, and helpful. Check if they are available through several sources: live chat, Skype, social media, email, etc.
- Check for demo trading. If you are immediately required to invest and trade on a real account, it may be a scammer who is trying to get your money as soon as possible.
- Search forums or social media for traders who have already traded with this broker. Note that it’s a bad sign if such people try to contact you themselves.
And the best way to avoid a scammer is to trade with FXCL. This is an example of a reliable and trusted broker. Keep your money safe!