As of April 2019, the spot FX market, which includes currency options and futures contracts, exchanged about $6.6 trillion each day. Therefore such a large quantity of money moves about in an unregulated spot market that trades instantaneously. Here comes little or big scams entice unscrupulous operators to make quick money. So to avoid scammers, traders must have the ability to calculate the trust of brokers in 2021. That’s why we have listed some strategies to test whether your chosen broker is trustworthy or not, so let’s get started.
Cold Contacts Should Be Avoided
Any broker or financial advisor who calls you without your permission from a firm with whom you’ve never done business should be avoided. A phone call, email, or letter might be used to make contact. Don’t be fooled by invites to financial seminars that offer free lunches or other incentives in exchange for lowering your guard and investing recklessly. In a 2013 study by the FINRA Investor Education Foundation, 64% of individuals aged 40 and over stated they had been asked to a “free-lunch” lecture.
Have a Discussion with brokers
Whether you’re searching for a broker or a financial adviser, you should feel at ease with the individuals who will be giving you advice, goods, and services. Would you mind inquiring about the company’s services and its experience with clients?
Financial professionals must put their customer’s interests ahead of their own when advising investments under a so-called fiduciary standard.
Do online research about the broker
Must check the broker’s reviews on the internet that people are commenting about them. Avoid selecting the brokers if there is anyone bad comment or an unhappy trading experience. Trade for some time to test the trust of your broker. Once you gain the trust, then invest bigger amounts.
I am experiencing a fraud Broker; what to do?
Read your contract carefully before making any decision. If you are not enough expert in finding out scams, then take help from an experienced trader. But dont sign a contract in a hurry without noticing each and everything. Always notice how your broker’s customer support team responds to your questions. If they instantly respond and their answers are informative, you can trust them. Once the contract is signed, your only option is to trust the broker. There is no way to claim that they are a scammer because you have signed the contract and agreed to all their policies. Take responsibility if you are scammed and avoid such mistakes again. After scams must post a comment about the brokers on their website. That’s how other traders avoid that broker.
Trading is getting famous in South Africa, and forex trading demo account south Africa is now a popular activity. But when traders turn to a real account, people face scams through their brokers. While traders may hold brokers responsible for their losses, there are situations when brokers are to blame. Before creating an account, a trader should undertake comprehensive research on a broker.