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
Some 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:
- 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.
- 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.
- 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:
- 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.
- 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.
- A legitimate best ECN Forex brokers provides the license number at the bottom of their home page on their respective websites.
- 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
|FX NextGen||www.fxnextgen.com||Offshore license|
|Daiju Commodity Markets||https://www.daiju-cm.com||No License|
|Titan FX||www.titanfx.com||Offshore License|
|FTE FX||www.ftefxpro.com||Offshore License|
|Prime XBT||www.primexbt.com||Offshore License|
|Solidary Markets FX||www.solidarymarkets.com||No license|
|Golden FX||www.golden-fx.com||Offshore license|
|Your Trade Choice||www.yourtradechoice.com||Offshore license|
|First BTC FX||www.firstbtcfx.com||No license|
|RCM FX||www.rcmfx.com||Offshore license|
|CCM Clearing||http://ccmclearing.com||No License|
|Financial.org||https://financial.org||No License. Negative Reputation.|
|United FCG||www.unitedfcg.com||No license|
|Easy FX Trade||www.easyfxtrade.com||No license|
|CFD Trend||www.cfdtrend.com||Offshore License|
|FX Options24||www.fx-options24.com||No license|
|MGM Markets||www.mgm-markets.com||No license|
|OMC Markets||www.omcmarkets.com||No License|
|Chrono FM||https://www.chronofm.com||No License|
|Emporio Trading||https://emporiotrading.com||Offshore License|
|Sure Forex Trade||www.sureforextrade.com||No license|
|Capital TradeFX||www.capitaltradefx.com||Offshore license|
|FX PREMIUM||www.fx-premium.com||Offshore license|
|Pari Fx Trade||www.parifxtrade.com||Offshore license|
|Circle Markets||https://circlemarkets.com||Offshore license|
|Pro X Finance||www.proxfinance.com||Offshore license|
|City Global Trading||http://www.cityglobaltrading.com||No License|
|Kingston Trading||https://kingstontrading.com||No License|
|Aduno Capital||www.adunocapital.com||No license|
|S&P Broker||www.snpbroker.io||No license|
|Go Capital FX||www.gocapitalfx.com||Offshore license|
|Swiss Investment Fx||www.swissinvestmentfx.com||Offshore license|
|Affliated Trade Group||www.affiliatedtradegroup.com||No license|
|Bex Options||www.bexoptions.com||No license|
|Admiral-Markets.com||https://www.admiral-markets.com||No License. Clone Firm.|
|Phy Capital Investments Limited||www.phyfx.com||No license|
|Libra Markets||www.libramarkets.com||No license|
|FXIG Trades||www.fxigtrades.com||No license|
|Ideal Global Trading||www.fxideal.com||No license|
|Golden Financial||www.gdfxuk.com||No license|
|Golden Key Pro||www.goldenkeypro.com||Offshore license|
|GCG Asia||www.guardiancapitalag.asia||No license|
|Trade Global Market||www.tradeglobalmarket.com||No license|
|AZ Trades||www.aztrades.com||Offshore license|
|IC Finance||www.ic-finance.net||Offshore license|
|Forex Grand||https://forexgrand.com||Offshore License|
|Ace Forex||www.acefx24.com||Offshore license|
|Olymp Trade||olymptrade.com||No License|
|Blue Trading||www.bluetrading.com||No License|
|SeRex Investments||www.serexinvestments.com||No license|
|Tradepro Capitals||www.tradeprocapitals.com||Offshore license|
|Lockwood Investments||www.lockwoodinv.com||Offshore license|
|Swiss Capital Invest||www.swisscapitalinvest.co.uk||No license|
|Trading Epic||www.tradingepic.com||No license|
|ADN Markets||www.adnmarkets.com||Offshore license|
|Worldwide CapitalFX||www.worldwidecapitalfx.com||Offshore license|
|Millennium FX||www.mnmfx.com||Offshore license|
|BlueMax Capital||www.bluemaxcapital.com||Offshore license|
|Capital Hall||www.capitalhall.com||Offshore license|
|K2 Wall Street||www.k2wallstreet.com||No license|
Top Rated Online Best Forex Brokers 2023