Five Shades of “Shady” Brokers – Subtle Signs of Broker Fraud

ForexFraud
Brought to you by: Stratton Markets LogoYour capital is at risk

So, you registered with a new broker, and begin to wonder whether the pieces of the puzzle fit.  The rule of thumb is: once you smell something fishy, you are most probably right. Here are a few points we suggest you look out for in determining scam.

  1. Questionable Marketing Practices

A broker promising you exceedingly high returns. “Invest $100 and become a millionaire in two days” sound familiar? Scam intermediaries try to capitalize on our basic desire: to attain as much money as possible with as little effort as possible. These brokers will promote how easy trading is, and how quickly you will get rich with them. Our advice when seeing this would be to walk away. Remember, if it sounds too good to be true – it most likely is.

  1. “You are not risking anything”

A phrase like this is a classic, and is attributable to fraudulent behaviour. Trading is always a risk, and no trading choice is 100% safe. If your broker promises you will never lose money with them, it may be that they don’t have your best interests at heart.

3.Over-Reliance on Expert Advisors

Trading while you sleep may be tempting, and robots can serve a good purpose or two. Nevertheless, if a broker pushes robot software as a top trading solution, it may be advisable to take a closer look at things. Expert advisors do not perform well in every single market, and it takes a certain share of trading experience to be able to work them properly.

  1. Withdrawal Issues

If you abide by your broker’s withdrawal terms and conditions, and yet have trouble withdrawing money, again and again, this may be worth looking into. Too long of a wait, problems with the withdrawal platform, managers ignoring your requests… In situations like these, it may be best to opt out to avoid the risk of things taking an unpleasant turn.

  1. Reviews

When working with trusted brokers, traders are often willing to go online and take a minute to share their positive experience. If you can’t find a single positive (independent) review about yours, while scam comments completely take over – this is hardly a good sign.

Of course, not all of these necessarily mean fraudulent behaviour

Nevertheless, we tend to advise traders to opt for a licensed and regulated broker, versus going along with unregulated intermediaries and stressing out as to the safety of your funds.

License and regulation mean that a higher authoritative body is there to protect you from being cheated at all times.

*Risk Warning: CFDs are complex instruments that come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts, lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.


ForexFraud

Latest news

AUD/USD Pair Dips 0.45% in Markets, COVID Panic Grips
The US dollar continued a week of surges in lots of its key pairs after the coronavirus pandemic placed itself firmly back on the agenda. Read more
EUR/GBP Eyeing 0.9282 Level on the Forex Price Charts
The pair containing the single European currency and the British pound has been closely watched in recent weeks. Read more

Safest Forest Brokers 2020

Broker Info Best In Customer Satisfaction Score
#1 ForexTime LogoYour capital is at risk Founded: 2012 Global CFD and FX broker
Number One Broker
Best FOREX BROKER Visit broker
5
#2 Your capital is at risk Founded: 2012 Global Forex Broker
Number One Broker
Best Trading App Visit broker
5
#3 Forex Broker Pepperstone LogoYour capital is at risk Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
4.9
#4 Your capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
BEST CUSTOMER SUPPORT Visit broker
4.9
#5 BlackBull MarketsYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8

    Forex Fraud Certified Brokers

    Plus500 Small Logo
    HYCM Logo
    Forex.com Logo
    XM Logo
    Oanda Small Logo
    BlackBull Markets Small Logo
    City Index Logo
    skilling logo
    FXTM Logo
    LegacyFX Small Logo
    Oinvest Small Logo
    OctaFX Logo
    Pepperstone
    Exness Small Logo
    VantageFX Small Logo
    ATFX Logo
    IQ Option Logo