Choosing a broker to invest in the Forex market is one of the most important things for the trader. It is as vital as your method of operation, because your broker can bankrupt you even if you operate in the best possible way.
How To Choose Your Forex Broker
Despite the annoyance that it is to have a severe regulatory body that helps during bad times to get money back due to forex scam.
The NFA, which is the regulator of the American futures market, is especially nauseous and always tends to issue new restrictive rules. I remember when hedging operations in Forex were practically impossible and now, very recently, they reduced leverage to 50: 1, which forces traders to have more money or risk less.
It is already known that there are programs that allow manipulating spreads by fraudulent brokers to force you to pay more, often delaying your orders for that to happen. Thus, not only can the spread be manipulated, it is also possible to create volatility that does not exist in moments of calm in the market.
Although spread and volatility are natural things in Forex, what some brokers do is not at all natural. And that is what you can expect from a brokerage based in tax havens, without any control, or not affiliated with official market bodies.
The NFA showed why it is on the side of traders very recently when deciding to punish two major American brokers, Ikon Royal and Forex.com.
That’s right, market giants were defrauding their customers’ operations, something despicable and unexpected when it comes to major players in the market. As a result, they will have to return the money they earned from the fraudulent transactions to reimburse all customers who have been cheated.
May this serve as a warning! And if you want to know more about Forex fraud or tips on how to preserve your money, consider reading the following tips:
- Consider keeping the official Forex website in your Favorites, always full of information about problems with Forex brokers and other important market issues.
- If you find the deal so good – The brokers who offer high profits with no risk, they first clear your doubts. They will not present any details about the method of earning.
- Do discussion with people – Keep connected with trading people in your market. This way, you will be informed about the forex trading scams.