Did you know that among numerous Forex brokers online, you can find a surprisingly large number of broker scams? There are unregulated and unscrupulous brokers who shouldn’t even have to be in the industry. However, since the market is not yet regulated as it should have, dealing with fraudulent brokers is one of the most common issues at the moment.
As a Forex trader, you’d like to find the best possible Forex broker who’ll be trustworthy in the first place. Speaking of that, you must learn to distinguish between regulated, quality ones and those that should be strictly avoided.
Therefore, we’d like to help you learn how to spot a good Forex broker among the plentifulness of poor-quality ones. Let’s get started with the first thing you’d need to keep in mind, shall we?
#1 Always read broker reviews
Are you aware that one good broker review can give you complete insight about that specific broker and help you decide which one to choose for your business? Do you know why that is so? To cut a long story short, a good review will provide you with the following:
- General information such as name, type, country, regulation, etc.
- Customer service – phone, mail, languages, etc.
- All info about its trading platform – time zone, demo account, mobile trading, etc.
- Account – minimum deposit, maximum leverage, etc.
Besides all that, you can get a deeper understanding of what you can expect from the broker, its key points, basic, premium, and elite packages, and so on. All this information will be more than valuable to you when deciding which Forex broker to choose.
#2 Make sure regulatory agencies regulate it
One of the essential things that will make you realize whether you’ve been dealing with a regular, quality Forex broker or not is his regulation. If we are speaking about the United States, two agencies make brokers valid:
- National Futures Association – NFA
- Commodity Futures Trading Commission – CFTC
On the other hand, when we’re speaking of European Forex brokers, numerous regulatory agencies depend on the broker’s country of origin.
#3 Do online research of brokers and read comments
Nothing will save you better than reading comments about your preferred brokers to see how much their customers are satisfied or not. It would be best to see whether there are complaints or not regarding the inability to withdraw funds.
Take your time to go through the fine print of the documents while you are about to open your account. It’s crucial because incentives required for opening the account can often be used against Forex traders when they are withdrawing the funds.
Conclusion – what you need to remember
We have singled out the top 3 elements that should be done and checked to identify a good broker. It’s no surprise that brokers can be guilty of certain losses of a Forex trader. That’s why a trader has to be thorough and do profound research on a Forex broker before he decides to open an account.
In case the research turns out to be positive on the specific broker, it’s good to make a small deposit, few trades, and withdrawal in the end. If all goes without any problems, traders can feel free to create a larger deposit.
