Want to try forex trading, but fear of putting capital in the wrong broker is a concern for all beginner traders. To avoid this, read the following tips.
Along with the rapid advances in technology and relatively affordable initial capital. Many people are interested in going through the forex trading business. Especially after hearing the stories of traders who made big profits. In accordance with the saying “There is sugar there are ants”. Forex brokers are popping up because seeing the world of trading is a business area that is increasingly in demand. But be careful, not all of these brokers carry out their functions properly. Many cases of forex business fraud are ready to swallow your funds.
Actually, the main function of forex brokers is to connect buyers and sellers in the forex market. This is because the big banks in the world trade their currencies on the forex market. But because of the large number of funds needed, small traders and beginners are certainly impossible to fight there.
Since internet technology is increasingly advanced, forex business can be done by everyone. That’s because the capital is relatively small and can be done online. However, many irresponsible websites on the internet claim to be trusted forex brokers. We as traders must be careful in choosing which ones are not fraudulent brokers.
Disadvantages of Using a Fraud Broker and How to Avoid it
Maybe we all already know what the disadvantages are when caught in a forex business fraud. Yes, the victims are our capital. Broadly speaking, that is true. But did you know that there are many ways that make us lose money? Like customer service that is unresponsive, often requotes, difficulties in withdrawal, limits trading techniques and the like? The following are ways that we can use to be alert from fraudulent brokers.
Check Broker’s Office Address
Fraud brokers usually do not provide information on where they are. Or the location given feels strange or far-fetched. If the office is not available or fictitious, how can you give trust to deposit money with them? Although the forex trading business is done online, information about the location of the forex broker’s office is important.
Is Customer Service Available?
For a business providing services, responsive customer service is obligatory to exist. Before placing a deposit, you can do a little trial. That is by contacting customer service that is available, usually through chat, email, or telephone features. But we also need to be careful, many are also perpetrators of forex business fraud that provide customer service that responds quickly. That is service when we will deposit but suddenly disappear without news when asked about the problem of withdrawal.
Note the Domain Address of the Website
The most common brokerage site is .com. It’s better to immediately undo your intention to deposit if the broker website that attracts your attention has a foreign domain. Or not commonly used, coupled with the appearance of websites that seem unprofessional. In addition, there are many testimonials in forums that explain that the site is hampered in the case of forex business fraud.
Check the Broker Regulations
Fraud brokers will not explicitly state their regulatory status. To get regulation from a country, a long and strict process is needed. Never mind fraudsters, bro, who can honestly experience a warning. Even up to the revocation of regulations if caught doing violating. Regulation is to protect the rights of traders in terms of the law.
Keep in mind, this regulation follows the regulations that apply in the country where the regulator brokers. Not following the location of the trader.
Don’t be tempted by offers that are too tempting
You see a broker is not regulated, the address is not clear. But the customer service is responsive and promises big profits? Wow, that means you have to be more careful. Most fraudulent forex brokers target beginner traders who are “passionate”. So that they can immediately get a profit that sometimes does not make sense.
Just like other businesses, losses and profits are two sides of a coin that always exist. If there is a forex broker that promises to guarantee 100% profit or free loss, immediately close your browser. That’s because the risk of your capital will disappear even bigger.
Beware of Reasonable Requotes
In forex trading, requotes are things that traders don’t like because they mess up their strategy. Requotes sometimes appear when the market moves too fast. But fraud brokers often make requotes to suck up your capital little by little.
Learn about the market atmosphere when the requotes appear. If you have exceeded the limits of fairness, or often requote when the market is calm, there is a possibility the broker plays a price. Instead of adding to your deposit, start to consider finding a new broker that is far from being suspected of forex business fraud.
Having trouble in withdrawal? You Must Be Alert
This one case often confuses beginner traders. Just started trading, already happy because of profit, but can’t withdraw ?. There are times when this is because traders are not carefully reading the terms of withdrawal. But the perpetrators of forex business fraud will always make it difficult for traders. This is where the importance of customer service is responsive and ready to help you.
Provided that the conditions for withdrawal have been fulfilled and fraud is not found. A trusted broker will give you rights. Conversely, with fraudulent brokers, there is no relief that is a relief. That’s because they have targeted your money from the start.
You Should Be Suspicious Of The Broker Provides Trading Technique Restrictions
In trading, there are various methods such as scalping, hedging, and so on. Fraud brokers usually limit the techniques used by traders. The goal is for traders to find profit more difficult. This is done because even if the trader gets a profit, the money comes from the broker’s own pocket to build market trust.
Before placing capital, try a demo account first
As we all know, the forex business has the possibility of profit and loss. In accordance with economic law, we all expect to get the maximum profit with the smallest amount of capital. Before depositing a deposit to the broker, you should first try trading skills on a demo account.
Many trusted brokers provide demo accounts for download by traders, without the need to fill in a deposit. Even if you get a profit on a demo account you can’t withdraw it. But even when loss we will not lose money. Demo accounts are very useful for training market sensitivity. Besides that, it is useful to recognize whether the broker’s policy is in accordance with your trading style.
After reading the tips above, it can be concluded that the risk of getting caught up in forex business fraud can be minimized. The trick is to make a more careful observation. Many new traders who enter the forum immediately ask for broker recommendations without wanting to do further research. If you are lucky, maybe you will get a list of brokers that are directly in accordance with your abilities and informative. But many fraud brokers are eyeing this opportunity to offer their fake services, so you need to be careful.
Keep in mind, even though there are brokers involved in forex business fraud; not all brokers in this world are fraudsters. Many traders have successfully gone through the forex business. Of course through a long process and learning from mistakes. Checking regulations and broker reviews are important. Generally, regulated brokers have more stringent requirements and a more detailed registration process. This might be troublesome at the beginning. But it’s better than giving up your money to brokers whose regulations aren’t clear.