How to Spot a Shady Forex Broker

How to Spot a Shady Forex Broker

  • Posted on 1919-1111-2020
  • by Gareth McCauley

Forex scams can be financially devastating. If you’re not careful, pursuing forex can lead you to more debt than gains.

Selecting the right broker is the first step to avoiding scams. To help you avoid fraudsters, Fair Forex lists down five red flags to watch out for.

 

1. You did not actively pursue them

Always be cautious of persistent brokers you did not personally contact. When choosing a broker, get referrals from acquaintances or consult trusted reviews instead of engaging with unsolicited messages or phone calls.

 

2. They are extremely aggressive

While brokers in general may be extroverted in nature, forex scammers will not hesitate to appear more coercive. They may ignore requests to stop contact and will usually ask you to deposit funds as early as your first conversation.

Legitimate forex brokers would want to ensure you’re sufficiently acquainted with their company before investing. Brokers who pressure you into making hasty decisions are likely to involve you in a scam.

 

3. They discourage self-education

Phoney forex brokers discourage clients from educating themselves about trading and the Foreign Exchange market. Instead, they will encourage you to trust their expertise and leave the decision-making up to them. In doing so, you enable them to make decisions on your behalf that may not be in your best interests.

 

4. They overpromise

If something seems too good to be true, then it probably is. Promises of quick and easy cash are common red flags. Excessively downplaying financial risk is another indicator. When it comes to trading, results are difficult to predict and profits are dependent on an ever-changing market.

 

5. They are evasive

Legitimate brokers would willingly answer any queries you may have. Con artists will try to talk over you, divert your attention, or even appear antagonistic.

Ask to see any records that can help establish the firm’s credibility. This includes any historical data, financial statements, disclosure statements, and regulatory information.

Verify if the contact information provided on their website are accurate and up to date. Call the phone number, send an email, and visit the physical address to see if it really belongs to the brokerage.

 

Forex brokers you can trust

To safeguard your investment, work with a well-established broker who is transparent in their fees and regulations, with positive reviews to back their name.

At Fair Forex, we never use manipulation or restriction to attract investments. We’re a forex broker that accepts US clients, and we’re known for lighting fast execution, deep liquidity, and some of the lowest commissions and spreads in the industry. We offer free deposits into client segregated accounts to keep your funds protected.

Contact us at 1-844-600-FAIR to book a consultation.