While the number of scam Forex brokers has dwindled considerably over the years, it is still important to choose a regulated one. A common red flag is a broker with a spread of seven or eight pips. A normal spread is usually two to three pips. Traders who want to avoid these scams should stick to regulated and registered brokers. This article will discuss some of the most common red flags to look out for.
Don’t automatically assume that a forex broker is legitimate just because it is sponsored by a major company. A major sponsor pays for the name on the football team, so don’t automatically think that a broker is legitimate just because they are sponsored by a major company. A few warning signs you should look out for include suspended account access, pressure to deposit more money, and technical difficulties. Ensure that you approve all employees’ access to your account.
Beware of signal seller scams. A signal seller will sell you information about trades and claim to be based on professional forecasts, and will guarantee to make money even for inexperienced traders. These brokers will ask for a daily, weekly, or monthly fee to use their service. However, they won’t offer any information on how to make money – instead, they will simply sell you information that is unlikely to work.
Another red flag to look for when looking for a scam forex broker is a high bonus. While these bonuses might sound impressive, they are not regulated. You can tell if a Forex broker is a scam by the lack of details on their bonus offer. For example, ABC broker suggests that you sign up for a free demo account with them and receive a bonus of one thousand dollars. The broker’s website will then redirect you to an account-creation page.
In addition to red flags, scam Forex companies will claim dozens of fake awards. The words on these awards are fabricated, often saying “best broker 2015” when they are actually fake awards. You can’t trust them, so you should be skeptical of any awards that a Forex company claims. Moreover, you’ll be unable to withdraw your funds and won’t have the opportunity to review their services. In addition, the broker’s reputation will be tarnished, and they won’t have the resources to rectify any mistakes.
Scam Forex companies also boast dozens of made-up awards. The award text is often misleading and reflects a lack of credibility. For example, a fake award may say “best broker 2015” but actually refer to an entirely different website. The links on these awards are often broken. You can’t trust these fake awards, and you’ll never find them on a website. If you do find a fake award, it’s likely that it’s a scam.
There’s no way to tell if a broker is a scam. If a broker offers you a bonus, you should ask how long the bonus has been active. Some brokers do not allow you to withdraw your funds. A regulated broker will not offer this. And if you’re unsure of the terms of your agreement with a regulated forex broker, contact their regulator. You’ll be surprised at how many people get ripped off by unregulated forex brokers.
While there are many examples of scam forex brokers, a good place to start is by examining the regulating authority of the broker. Although some brokers may claim to be regulated, this doesn’t mean that they are. As long as the broker is regulated, you’re safe from a scam broker. The CFTC and NFA regulate foreign currency brokers, and they’re the best places to look for these. If the regulating authority is not regulated, it’s best to steer clear of it.
When choosing a broker, be cautious. Not all forex robots are scams. Rather, look for a broker with a long track record. A well-established trading robot has a proven track record of profits. It is a good way to earn money without having to spend your time on the market. In addition, a scam forex broker will offer a free trial period for their software. It will be up to you to test the software.