A quick online search for the phrase “Forex broker scams” will quickly net an alarming number of results. Despite the Forex market’s continued endeavors to become more regulated, there are still an increasingly high number of unscrupulous brokers who have no business being in the business.
Luckily, they all very quickly end up being weeded out.
For anyone interested in trading Forex, it is paramount to understand which brokers can be relied on – and which can’t. In order to determine the strong brokers from the not-so capable, working with only the most reputable brokers, it is critical to follow a best-practice approach prior to depositing any large amount of funds with a broker that is unknown to your or comes without recommendation. Forex trading is daunting enough, however, when you add a broker that works against hopeful traders, turning any sort of profit can be almost impossible.
What is real and what isn’t?
Online, it is very easy to become overwhelmed with many different Forex brokers reviews, web forum posts and negative comments from people with all sorts of reasons for being disgruntles with a broker, it is important to take note of the fact that many traders fail to make a profit (some even lose large sums of money.) In a lot of cases, these discontented traders wish to blame anyone and everyone for their failed trading practices; the broker is the easiest target for their negativity. Therefore, when reviewing potential Forex brokers, it is important for traders to use their discretion when categorizing facts and fictions.
In many instances it may appear to a trader who did not get the results they had hoped for that the broker was intentionally trying to dissuade their profits. Negative remarks such as, “The moment I placed my trade, the direction of the market turned;” “I’ve always had slippage on my trades that was never in my favor;” or “my broker stop hunted every position.” are common. Every trader experiences these things and, more often than not, the broker is not at fault.
How to Weed Out the Bad Apples
- Do an Internet search for reviews of new brokers. Use your best judgment to sort through fact and fiction
- Be wary of complaints from traders who were unable to withdraw their funds
- Review all of the fine print of every document prior to opening an account.
