Forex is the largest market in the world, with five trillion being traded every single day. With more and more online brokers coming froth, it’s now easier than ever for traders to speculate on the currency of a country. You can now access this even more than ever before, and millions are trying to trade online.
But, with that of course, comes the few bad apples which may just be trying to take your money and use you. When there’s a lot of choice around too, it’s inevitable that there is a lot of questionable scammers on there. So, who is legit? Who is to be trusted, and who is to be kicked to the curb?
Read on to find out as we look over the different factors that determine whether your forex broker is genuine, or not to be trusted.
There are a few steps that you can do first and foremost that give you security and assurances before you deposit.
First, look for accredited brokers that are in safe broker sections. You should find out what kind of relationship you will have with that broker, and of course, how much contact you’ll need to provide. Also, make sure that you can open dialogue with the broker to assess their transparency.
Also, do some research on the past broker. This is a good one, because if a broker is bad, others will know. You also can shop around before you decide to deposit in one.
You can also check sites. A lot of forex sites will have broker reviews. Read them over and look for the affiliate links. If you see links from your review site that will lead to the broker site, this s a great sign, since it lets the person on the other end know your site is upfront about who they are.
You also should read the small print. This is an obvious, but seriously, get into the habit of reading it.
Finally, if you’ve already signed up for a new broker, you should ensure that you check the statements on the regular as the lots traded, along with the deposits in and out and the account balances are there. If there are discrepancies, you need to address this with the broker.
The Broker Test
Now let’s say you’ve found this really good broker, and you love their features, but you’re skeptical on how legit they are, then you should put forth a small deposit. Do one small trade with a low lot size, and from there, request a withdrawal. Why is that? Well, there is absolutely zero reason the broker should be holding onto that.
With you have slow withdrawals and you need to follow up to get the funds, that’s a sign that the broker isn’t being honest, and a huge red flag as well.
Deliver what they Promise
Finally, check to see fit they deliver what they promise. Check the FAQs section of the site and see if they have any little limitations such as the withdrawals are processed within 48 hours. You can from there test this as you did before. If the broker is in line with that, then they are committed to keeping their promises, and that of course, means that you have a trusted broker.
All of these precautionary steps can be put in place before you get into forex trading. The right broker enhances your experience, so make sure that you always have someone who is not only reliable but someone you can go to and get your money from when you’re ready to exit.