Forex training represents one of the best choices when it comes to investing money in online trading activity. The reasons are endless.
First of all, we are talking about the opportunity to trade five days a week, round the clock from every corner of the world. Besides, anyone can access the trading platforms from their computer or even a mobile device and benefit from various market analytics tools contributing to better trading decisions.
Moreover, the volatility and liquidity of the market enable the speculation on currency prices and profit-making on a daily level. Bearing in mind all these advantages, it’s a market attracting more and more ordinary people and retail traders to try their hand in investing in financial markets.
Due to the popularity of Forex, the brokerage business is also flourishing. And brokers are in fierce competition to cater to the needs and meet the expectations of their clients.
On the other hand, it gives less trustful companies and suspicious signal traders a space to play on the card of experience and disinformation of rooky traders.
That’s why picking the right broker is a crucial but also tricky task. Here are the guidelines on selecting the right trading intermediary and staying away from fraudulent companies.
Check if the broker is regulated
The reason for choosing the right broker is all about protecting your funds from scammers. In other words, when you collaborate with regulated and reputable brokers, you are sure that your funds will be managed properly. There is no one financial authority for the entire Forex market. Every country has its own legislation and regulations every broker’s business needs to work in compliance with. Reading a broker review will help you as a new trader to verify the reputation of a broker. Besides, referring to the financial authorities’ information on their websites is also an important step.
Pay attention to the broker’s name spelling
When performing the above-described step one, make sure all the letters of the name of a broker are identical. It is not uncommon practice that scammer brokers change a name in just one letter to confuse the prospective clients. Yes, they became artful and subtle in their scamming techniques over the years.
The difference between the regulated and a scammer broker
To get on the whitelist of the brokers, the company ought to fulfill various criteria. Here they are:
Reliable trading platform
The speed of trading executions without delays should be at the core of a good trading platform. Most of the platforms are designed based on the MetatTrader software and several other popular and proven algorithms. A reliable broker should have one of them in place to ensure seamless and secure transactions.
Transparency of trading costs, information, and overall trading process
All the info related to the trading process should be accessible via the brokerage trading platform conveyed to traders clearly and transparently. It’s recommended to learn more about the types of fees so you can better understand what the broker has in its offer. Also, the contact details, location of the business headquarters should be publicly displayed.
Efficient and professional client support
In case of any ambiguities, an easily accessible communication line must be available at any time to broker’s clients. The lines of communications comprise email, chatbot, and phone communication.
Read the signs of a scammer
Long story short, the scammers will have to offer all the opposite of the reliable broker: no client support, lack of information on fees, location, contact details. Regarding the regulations, they may say they are in the process of obtaining a license. The scammer will try to lure you with once-in-lifetime offers and get rich overnight schemes. And Forex is for sure not the quick way to make extra money. It requires excellent planning, willingness to learn. And, of course, caution at the very beginning while you are in the process of choosing your trading intermediary.