Why is it important to read forex broker reviews?
Forex broker reviews shed light on the forex brokers’ legitimacy, transparency, and efficiency so that traders and investors can choose the right one.
With more and more people getting into trading, a surge in trading platform scams can also be observed.
Good traders know that earning money in the market is hard enough on a legitimate platform, let alone on a fraudulent one. And using platforms that have a legitimate trading license is the first step.
Why is it important to read forex broker reviews?
Forex broker reviews are crucial in helping people being victims to scam trading platforms online.
Data suggests that almost 95% of traders lose money in the long run, which is why people get desperate and find easier ways to earn money on the market.
Unrealistic gains, automated trading, and fake trading licenses attract newbie traders and investors into depositing their hard-earned money into these scam platforms. And once they deposit their money, getting it out can almost be impossible.
Users would then be met with withdrawal issues because they have violated any terms and conditions and many other excuses that will prevent you from getting your funds out of their platform.
Broker reviews help people avoid fraudulent platforms. They also inform users which brokers offer the best platforms to use, which ones have the best bonus system rewards, and which ones are most used by other traders globally.
What to pay attention to?
Broker Regulation – Trading License
The Forex market is one of the most heavily traded markets globally, and it is diligently regulated by different regulatory bodies across other countries to attain a trading license.
- Cyprus Securities and Exchanged Commission (CySEC)- For a broker to qualify and attain a trading license from the Cyprus Securities and Exchanged Commission, a broker must follow several rules.
- At least €750,000 in operating capital.
- Submit financial statements regularly.
- Follow the Investor Compensation Fund regulations, which means in cases of bankruptcy, users can still recover €20,000.
- The European Securities and Markets Authority (ESMA)- Traders getting dragged into scam platforms because of their unrealistic gains are typically due to high leverage, which is not allowed by the ESMA and other broker regulations.
- Maximum leverage of 30:1 for significant currency pairs and 20:1 for non-major pairs.
- Protection against negative balance.
- 50% margin closeout.
2. United Kingdom
- Financial Conduct Authority (FCA)- The FCA is a national regulatory body that aims to protect consumers and keep the UK market safe from any fraudulent activity. The broker must follow several rules.
- Consistently submit financial statements.
- Ensure users that in case of bankruptcy, users can still recover up to £85,000
- Have at least £1,000,000 in usable capital
- Prudential Regulation Authority (PRA)- Yet another regulatory body that dictates broker regulation, as it aims to develop professional and ethical standards for platforms to follow and abide by.
- National Futures Association (NFA)- This regulatory body aims to fight back against scams and safeguard the integrity of the financial market.
- Commodity Futures Trading Commission (CFTC)- The CFTC works with the NFA to implement broker regulations that platforms must follow to protect users, such as:
- 50:1 maximum leverage for major pairs
- 20:1 maximum leverage for all non-major currency pairs
- Never allowing traders to hedge
- Have at least $20,000,000 in usable capital
- Use factual data to entice users into their platform.
- Submit financial statements regularly
Trader reviews and reviews like this
Forex broker reviews are also an excellent sign for users to look out for when choosing what trading broker to use.
Broker reviews like this one allow newbie investors to read up on the platform’s reliability and trustworthiness regarding their license, terms and conditions, and whether traders from all around the world also trust them.
Available payment methods
When choosing a platform to deposit your money into, payment methods are also a thing to look out for.
Depositing your money is the easy part; withdrawing it is far trickier. You should only use platforms that accept major payment systems like Visa MasterCard; it also protects users by allowing for cashback processes.
Always check for minimum deposit amounts, minimum withdrawal amounts, fees, the frequency of withdrawals, and the maximum amount users can withdraw in a specific time frame.
If you have fallen victim to scam platforms online, don’t feel embarrassed because Global Fraud Protection is here to help you get your money back from these fraudulent brokers.
Present your evidence and express your complaints about the broker in our Global Fraud Protection customer support team to help you get started with the chargeback process now.
Not only can we help you get your hard-earned money back from these scam platforms, but Global Fraud Protection can also help you and other traders avoid fraudulent brokers on the internet with our constant forex broker reviews.
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