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Forex trading: Know the signs of a scam

The forex market is the largest and fastest growing market in the world today, and with a daily volume of over $1.5 000 000 000 not even the stock market can compete. One of the main reason as to why forex trading has become so popular is because it can be done with little hassle over the internet using forex broker. As we all know, anything involving a lot of money is inevitably going to attract attention from criminal organizations and , unfortunately, forex trading is no different.

Luckily, you won’t really have to worry about being scammed as long as you stay careful and employ a healthy bit of skepticism. Here are three common things in the forex trading world that should set the alarm bells ringing:

Guaranteed profit

Whether it is a broker that guarantees high profit or a trading system of robot that someone wants you to buy, you need to understand that there’s no way anyone could ever guarantee such a thing. In forex trading, and any form of trading for that matter, there is always a risk involved. If someone found a way to guarantee profit in forex trading, he would certainly waste time building a company that teached others the system, when he could quickly just become a billionaire from trading with guaranteed profits.

Unlicensed brokers

You should never trade with a Forex broker that isn’t licensed and regulated. This is a sure sign that something is not right, and besides, why would you ever take the risk of trading with an unlicensed broker when there are so many trusted brokers that are licensed and regulated.

One of the easiest ways of finding a trusted broker is to go through a forex portal like forextrading.pm, which you cna find if you go here. They have reviews of many of todays top forex brokers. There also a spanish alternative which is called Cotización Divisas.

You can usually find out whether a broker is licensed or not in the “About us” section of their website. Should there be no information about their licensing there, make sure to send an email to customer support in order to receive information about it. When you have found the licensing info, don’t just accept it. Make sure to look it up with the concerned authority in order to make sure it’s valid, as some scammer might provide a fake licensing number in order to appear legitimate.

Customer support

It is pretty unlikely for a forex scammer to put a lot of effort into making their customer support good. Always send an email to the broker before signing up to see if you get a swift and useful reply. If you have to wait a long time, and the answer seem to be computer generated, this might indicate that the website is not legit, and you should be careful before proceeding.

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