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EASY WAYS TO AVOID SCAMMERS IN FOREX

By June 11, 2019 November 20th, 2019 No Comments

EASY WAYS TO AVOID SCAMMERS IN FOREX.

The development of technology has allowed a large number of people have access to financial markets, many of these people are often printed in this type of investment and are likely to fall into the scams of the unscrupulous present in this and other markets. In this article, we will see 3 key points to avoid being scammed in Forex.

First –    If you do not know the market, DO NOT INVEST!

A common mistake of those who have just started in Forex is to invest in it without knowing how it works. Do not get carried away by the misleading advertising of some ads on the web that say that trading Forex is very easy and that you can convert the US $ 1,000 to the US $ 10,000 in a week. Being a Forex trader is a job, someone who is a lawyer cannot exercise their profession properly if they do not have knowledge of laws, a trader cannot operate properly if they do not know the market.

What things should you know before trading in Forex?

Here is a short list of what you should find out as a starting point.

  • What is Forex? How does the retail market work? And, who participates?
  • What is a Forex broker? What types of broker are there? How are they different?
  • Are Forex brokers regulated? What regulations are there? What does each of them say?
  • What is a trading system or strategy? What elements do you have?
  • What is a demo account? What is a real account?

Second    Choose a GOOD Forex broker that is REGULATED!

Choosing a Forex broker can be a difficult task considering that there is a wide variety of them in the market. While regulation is a key part when choosing your broker there are other very important factors that you should consider.

Here we leave a list of things to review:

  • Regulation: Where is the broker regulated? Does the regulation require the broker to have a quota in case of illiquidity or bankruptcy? If I have a conflict with the broker, (eg, they do not want to recognize some profits in my account), the regulator intercedes for me or does not do it?
  • Customer Service: Does the broker assist me 24 hours a day, 5 or 7 days a week? Do I have a personal adviser to whom to turn if I have a problem with my account? How fast does the broker respond when I want to contact them?
  • Trading Platform: What financial instruments does the trading platform have? Are the execution and speed appropriate or does the platform get slow at all times? Is there a lot of slippage or slippage?
  • Segregation and Security of Funds: Does the broker have a policy of segregation of accounts, that is, customer funds are in a separate account to the bank account of the broker? Does the broker have a refund policy in case of illiquidity or bankruptcy? How much capital can broker covered per account (US $ 20,000 – US $ 30,000, more or less) in case of illiquidity or bankruptcy?

Thirdly-     NEVER give your money to a third person.

  • When you enter the Forex market you have two options to choose with respect to your operation: Operate your own account either manually or with a trading robot that you have prepared.
  • That a third party operates your trading account.

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