Forex Trading is one of the most of popular means of making money online. Requiring very little effort, the only thing you need is knowledge of trading and funds for investment. However, there are lots of merchants who lose their investments and end up blaming forex as a bad way of making money online.
Well, apart from being an unskilled trader, the other reason why you could lose your forex investment is the inability to identify a fake broker. This is ultimately the most common reason for most people’s failure. Read on as we give you an insight of how to identify scam forex brokers.
Look at the official website
Would you like to trust your huge investment to a company which can’t afford $75/year to host a site? In fact, if the broker uses a free blog, it’s very possible they want to stay anonymous. This is because of the fact that the domain is not registered under their own name. Nevertheless, there are some few quality and legit blogs that are using free blogging platforms.
The other thing to look out for is reviews and if they’re genuine. If you get a feeling that the reviews seem to be very common, chances are the broker is still new in the market and is mostly earning money through an affiliate.
Check the forum member
If a forum member replies to post with a recommendation about the forex broker, then you have reasons to associate him/her with the broker. You can make up your mind if the member is representing the broker officially or not. If you think the member is not officially representing the broker, go ahead and look at his/her previous forum contributions. If the member participates regularly, then chances are that the recommendations are genuine.
Check the link
You will not know the importance of checking the affiliate link until someone starts cheating with you. You can check at the affiliate link by looking at the characters like affiliate=fxsite or landingID=3 at the end of their review page link. The link extensions are mainly for affiliate. As much as it’s legitimate to get paid for referrals, it’s very improper for the owner to hide this fact. If you have inside knowledge concerning the affiliation deal, you can easily judge for yourself whether it’s genuine or not.
Incomplete sign up process
If the sign up process leads to a dead end or you’re having problems to download MetaTrader4 platform you can take this as a major tip off. This is especially if the website clearly indicates you can download “MT4 Trading Platform”. Keep in mind that most legit brokers will easily give you a variety of trading platforms such as demo and live accounts.
Option to comment
If the broker’s site gives you an option to add a comment/comments in the review section, that’s a good sign of transparency. However, try to comment first and see if your comment appears on the site or is held for moderation. In conclusion, your comment should be posted automatically. But if it’s later deleted, the site’s openness is doubtful.
This is one of the most important things a legit forex broker should offer. They should offer a variety of solutions in case you encounter any problem. Also, you should determine their response time and the variety of communication channels used to communicate.
Search the web
The most commonly used trick is to type the word “sucks” along with the broker’s name. This will easily bring out most of the negative reviews about the broker. However, this doesn't mean the forex broker is necessarily bad, but you’ll get useful insights about them
In conclusion, the internet is today filled with lots of important information about most of these online trading companies. That said, these surefire tips will help you quickly identify scam forex brokers in the near future.