How to Avoid Forex Scams

Forex, or the global currency market, attracts millions of traders around the world. Their interest is exploited by scammers posing as brokers. It is not always easy to understand whether a company is legit. Use our guide to make money in the largest financial market.

Local legislation differs, but the key requirements are universal. The best Forex trading brokers, from Indonesia to Europe, are licensed organizations; they offer attractive conditions for beginners and pros. These brands tick all the boxes on the following checklist.

1.  Is the Company Licensed?

Acquiring a license is the first stage for any honest provider. It may be obtained in different jurisdictions, and some of the biggest companies are authorized in several regions simultaneously. For instance, they may have a license from the FCA in the United Kingdom, the CySEC in Cyprus, and the FSCA in South Africa.

2.  Does It Offer Free Demos?

Every beginner should open a demo account first. It is used to explore the trading software in a training mode, with zero financial risks. The best providers allow you to create an account in seconds — just fill out a simple online form and check your inbox for the credentials. A demo should be unlimited, as novices have different learning curves.

3.  What Markets Can You Access?

Today, Forex brokers do not limit their offers to currencies. Aside from different pairings — Major, Minor, and Exotic — you may have easy access to other domains. For example, a well-established regulated company may offer stocks and spot metals. Through virtual derivatives like CFDs, you may also profit from commodities, market indices, Bitcoin, and other assets.

This may seem irrelevant for a beginner, but portfolio assembly is the ultimate goal. Eventually, you will need to diversify exposure. This limits risks and maximizes profits. Therefore, think ahead, as switching between brokers is a hassle.

4.  What Devices Can You Use?

The best companies offer powerful software for traders of all levels. These may be unique and standard solutions. For example, the MetaTrader family of products includes desktop software for Windows and Mac, mobile apps for Android and iOS, and a web-based terminal.

Today, such flexibility is essential, as traders do not have to be tethered to their laptops. You can use different devices throughout the day, as all of them connect to the same servers and share data instantly. The flexibility of access is indispensable in the 21st century.

5.  What Is Customer Support Like?

Make sure you can reach out to professionals whenever you need it. Currencies are traded 24 hours a day 5 full days a week. You should have an opportunity to contact an expert throughout the trading day; support centers usually work every weekday. The more communication methods are available — the better. You may contact the team by phone, email, or chat.

What Is Customer Support Like?

To Conclude

Real brokers are licensed companies with years of experience; account registration is only a part of their work. These providers are educators with efficient support and a wealth of free resources.