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How Can You Avoid Scam Brokers When Looking For Brokers?

Finding the best Forex Brokers is a changeling from the thousands of Scam Brokers. One of the largest markets in the world, Forex is a dominating force that extends to all corners of the planet, provided there are internet and computers. Hundreds of opportunities exist to make money, and this massive market carries with it, substantial potential gains.

Along with these gains, investors from around the world are always looking for a safe platform where they can trade without fear that they will be defrauded of their money by scam brokers. Among the choices, you will have as an investor looking to make money from the forex market, including both regulated and non-regulated forex brokers.

 

Regulation, Scam Brokers

Scam BrokersSome of them have a license, and others do not or are licensed offshore. Regulation exists to protect you as the client from scam brokers. The brokers who have a license are compelled or obligated to operate under strict guidelines and measures that ensure your money is always safe.

The authorities who regulate the brokers have international standards that may not be shared by some of the regulators. It is always imperative that you check to see if the regulatory body governing a broker is legitimate and accepted.

The rules will protect you in cases of fraud or if there is sudden solvency. You will not have to lose your money to scam brokers.

The body governing the broker will oversee the operations that the broker uses to deliver the service to you. Some of the brokerage firms may decide not to operate under regulation. Some of the reasons given for this include:

  1. A company may want to save on operational costs. When a company is licensed, one of the agreements contained in the guidelines concerns capital maintenance. We also must follow the best practices, employ preventive and protective measures against disastrous outcomes, and deliver high-quality service. All of this is very costly, and companies may opt-out of regulation to save money.
  2. The company might be a broker deceiving people with services that may seem professional but are fraudulent. They typically consist of the common conmen and other kinds of internet thieves who are only there to take your money and offer nothing in return. There are limited, and sometimes, no options you can pursue to recover any money that may be fraudulently solicited from you.
  3. Most of the time, it is new brokers in the market who want to provide their service using offshore licenses. These licenses have partial regulation measures and significantly lower operation and maintenance costs when compared to typical licenses from recognized bodies.

Security of Funds

The whole point of having regulations is the security of funds. We are sure that as a client looking to make a buck in the forex market, you are looking for someone that will ensure your funds are always safe. We always recommend that you pick a broker who is regulated by a recognized and respected body to reduce the chances of being duped by scam brokers.

As always, many or all of the scam brokers may make claims about their regulation, when in fact, none of that exists at all. There are ways for you to verify if they are telling the truth or blatantly lying to you.

When you open an account with a broker, it is always good to make sure that you have checked their credentials to make sure that they are not lying to you about their regulation status. Here are the steps you can take to do that:

  1. Visit regulatory body websites like the FCA, CySec, ASIC and others. Make sure they are all open so you can check every respective one for the record. Let's say a company claims to be regulated by the FCA; you will go to https://register.fca.org,uk to get the information about them.
  2. In the search box provided, enter the name of the broker or the license number. If they do not appear on the list, that is a bad sign and could be a reason to believe that they are fraudsters.
  3. A legitimate best ECN Forex brokers provides the license number at the bottom of their home page on their respective websites.
  4. You will be given information that they are regulated that states the FCA regulates them. If a different body regulates them, the FCA will tell you which collection they fall under.

What Kind of Broker Are They?

Most of the time, you will find brokers who advertise by pretending to be institutional brokers because they want to attract the best customers. They could be providing services to retail customers at the same time. They may not exactly be scam brokers but you still need to be careful.

If you want to verify something like that, you will have to click on the option that says 'Permission,' and there, you will see the information telling you which kind of customer they service.

As you may have learned in your forex education, we have different types of brokers. Typically, we have the dealing desk and no-dealing desk types. They fall into the less broad categories, which consist of MM, ECN, and STP.

You will have to check to see what kind they are so that you get the exact type of broker you want. You can do this by asking them directly after you verify that they are legitimate. We know of many legitimate brokers who say they are direct-to-market when in fact, they have a dealing desk.

You can also check to see if a broker operates under different names than the ones which you are familiar with at the time of searching, to avoid scam brokers.

Scam Brokers List

BrokerWebsiteReason
FX NextGenwww.fxnextgen.comOffshore license
GWITwww.gwitmarkets.comNo license
Daiju Commodity Marketshttps://www.daiju-cm.comNo License
CryptoNettohttps://cryptonetto.comNo License
DCA-Financehttps://dca-finance.comNo License
Caliburwww.caliburcapital.netNo license
Titan FXwww.titanfx.comOffshore License
FTE FXwww.ftefxpro.comOffshore License
Prime XBTwww.primexbt.comOffshore License
Solidary Markets FXwww.solidarymarkets.comNo license
Golden FXwww.golden-fx.comOffshore license
BigOptionhttps://www.bigoption.comOffshore License
KryptoWizehttps://www.kryptowize.comNo License
ForexChiefhttps://www.forexchief.comOffshore License
Traderswaywww.tradersway.comOffshore License
MidasGlobewww.midasglobe.comNo License
Kronosinvestwww.kronosinvest.comNo license
Binomowww.binomo.comOffshore license
Circleforexwww.circleforex.comNo license
TradeLTDwww.tradeltd.comNo license
LiteFinTechwww.litefintech.ioOffshore license
FinmarkFXwww.finmarkfx.comOffshore license
Your Trade Choicewww.yourtradechoice.comOffshore license
Bitalonghttps://www.bitalong.comNo License
4xCube4xcube.comOffshore License
First BTC FXwww.firstbtcfx.comNo license
EssenceFXwww.essencefx.comOffshore license
EvisionFXwww.evisionfx.comNo license
RickGlobalwww.rickglobal.comOffshore license
RCM FXwww.rcmfx.comOffshore license
OriginalCryptohttp://www.originalcrypto.comNo License
CCM Clearinghttp://ccmclearing.comNo License
Financial.orghttps://financial.orgNo License. Negative Reputation.
United FCGwww.unitedfcg.comNo license
Easy FX Tradewww.easyfxtrade.comNo license
CFD Trendwww.cfdtrend.comOffshore License
247SmartFxwww.247smartfx.comNo license
Traderiawww.traderia.comOffshore license
FX Options24www.fx-options24.comNo license
JustForexwww.justforex.comOffshore license
TBFXwww.tbfxtrades.comNo license
MGM Marketswww.mgm-markets.comNo license
OMC Marketswww.omcmarkets.comNo License
Chrono FMhttps://www.chronofm.comNo License
EasyTradehttps://www.easytrade.bizNo License
Emporio Tradinghttps://emporiotrading.comOffshore License
UKFinvesthttps://www.ukfinvest.comOffshore License
OneLifewww.onelife.comOffshore license
Cointeckwww.cointeck.ioNo license
NewSolidwww.newsolid.comNo license
OlympusMarketswww.olympusmarkets.comOffshore license
Sure Forex Tradewww.sureforextrade.comNo license
CFreservewww.cfreserve.comNo license
Fernwww.fuerfx.comNo license
Capital TradeFXwww.capitaltradefx.comOffshore license
FX PREMIUMwww.fx-premium.comOffshore license
Pari Fx Tradewww.parifxtrade.comOffshore license
InvestTeckwww.investteck.comNo license
Pinprotradewww.pinprotrade.comOffshore license
Circle Marketshttps://circlemarkets.comOffshore license
Pro X Financewww.proxfinance.comOffshore license
TheCryptoLimitedhttps://www.thecryptolimited.comNo License
Option94www.option94.comNo License
City Global Tradinghttp://www.cityglobaltrading.comNo License
Wigmarketswww.wigmarkets.comOffshore license
Kingston Tradinghttps://kingstontrading.comNo License
Aduno Capitalwww.adunocapital.comNo license
S&P Brokerwww.snpbroker.ioNo license
Capital88www.capital88.comOffshore license
4xincomewww.4xincome.comOffshore license
TopTradeProwww.toptradepro.comOffshore license
Go Capital FXwww.gocapitalfx.comOffshore license
Swiss Investment Fxwww.swissinvestmentfx.comOffshore license
Smartoptionfxwww.smartoptionfx.comNo license
Globalixwww.globalix.comOffshore license
Affliated Trade Groupwww.affiliatedtradegroup.comNo license
Bex Optionswww.bexoptions.comNo license
Admiral-Markets.comhttps://www.admiral-markets.comNo License. Clone Firm.
Esplanadehttps://esplanade-ms.comOffshore License
eMarketsTradewww.emarketstrade.comNo license
Phy Capital Investments Limitedwww.phyfx.comNo license
Libra Marketswww.libramarkets.comNo license
Monfexwww.monfex.comOffshore license
iFXOPTIONwww.ifxoption.comNo license
GoldFxTradingwww.web.goldfxtrading.comOffshore license
GoTechFxwww.gotechfx.comOffshore license
Ultrontradefxultrontradefx.comNo license
FXIG Tradeswww.fxigtrades.comNo license
ZonggangCaifuwww.zgangfx.comNo license
KapitalSwisswww.kapitalswiss.comNo license
The55thFxwww.the55thfx.comNo license
VolumeFXwww.volumefx.comOffshore license
Ideal Global Tradingwww.fxideal.comNo license
FXLinkedwww.fxlinked.comOffshore license
MaxiTradewww.maxitrade.comOffshore license
Golden Financialwww.gdfxuk.comNo license
Finbitexwww.finbitex.comOffshore license
Citifxmarketswww.citifxmarkets.comNo license
ZeegosFXwww.web.zeegos.onlineOffshore license
AitsFXwww.aitsfx.comOffshore license
4xpremiumwww.4xpremium.comNo license
TurboForexwww.turboforex.comOffshore license
Swissinv24www.swissinv24.comOffshore license
Golden Key Prowww.goldenkeypro.comOffshore license
UproFxwww.uprofx.comNo license
GoldmanCFDwww.goldmancfd.comOffshore license
GCG Asiawww.guardiancapitalag.asiaNo license
Trade Global Marketwww.tradeglobalmarket.comNo license
AZ Tradeswww.aztrades.comOffshore license
IC Financewww.ic-finance.netOffshore license
FXtrade777www.fxtrade777.comOffshore license
BTCHOMEwww.btchomemining.comOffshore License
Forex Grandhttps://forexgrand.comOffshore License
GxFXhttps://gxfx.comNo License
Ace Forexwww.acefx24.comOffshore license
Trader.Onlinewww.trader.onlineOffshore license
Olymp Tradeolymptrade.comNo License
69Brokerswww.69brokers.comNo license
TraderURwww.traderur.comOffshore license
WandaFxwww.wandafx.comNo license
Blue Tradingwww.bluetrading.comNo License
FXLeaderwww.fxleader.comOffshore license
Dax300www.dax300.comOffshore license
ProFxPremiumwww.profxpremium.comOffshore license
MegaTradeFXwww.megatradefx.comOffshore license
CFDpremiumwww.cfdpremium.comOffshore license
SeRex Investmentswww.serexinvestments.comNo license
Tradepro Capitalswww.tradeprocapitals.comOffshore license
KayaFXwww.kayafx.comNo license
PTBancwww.ptbanc.comOffshore license
Lockwood Investmentswww.lockwoodinv.comOffshore license
Swiss Capital Investwww.swisscapitalinvest.co.ukNo license
FXNobelswww.fxnobels.ioNo license
Trading Epicwww.tradingepic.comNo license
Brokerzwww.brokerz.comOffshore license
Hugoswaywww.hugosway.comOffshore license
ADN Marketswww.adnmarkets.comOffshore license
TradeInvest90www.tradeinvest90.comOffshore license
Worldwide CapitalFXwww.worldwidecapitalfx.comOffshore license
CapitalFXclubwww.capitalfxclub.comNo license
Millennium FXwww.mnmfx.comOffshore license
Kapitalfxwww.kapitalfx.deNo license
PRIMEXQwww.primexq.comNo license
Obsbitwww.obsbit.comOffshore license
SwiftCFDwww.swiftcfd.comOffshore license
BlueMax Capitalwww.bluemaxcapital.comOffshore license
ItradeFXoptionwww.itradefxoption.comNo license
70Tradeswww.70trades.comOffshore license
Capital Hallwww.capitalhall.comOffshore license
K2 Wall Streetwww.k2wallstreet.comNo license

REPORT A SCAM BROKER

Top ECN Forex Brokers Comparson 2022

Top Rated Online Best Forex Brokers 2023

Rating: 10
Regulated: CySEC, FCA
Min. Deposit: $ 100
Location: New Providence, Bahamas.

Rating: 9
Regulated: ASIC
Min. Deposit: $ 200
Location: NSW, Australia.

Rating: 7
Regulated: CySEC
Min. Deposit: $ 1
Location: New Providence, Bahamas.

Rating: 8
Regulated: IFSC, CySEC
Min. Deposit: $ 50
Location: Belize, C.A

Rating: 6
Regulated: FCA
Min. Deposit: $ 200
Location: London, UK.

Rating: 5.5
Regulated: FCA, ASIC
Min. Deposit: $ 10
Location: Sydney, Australia

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