Forex What are the characteristics of a broker scam?

[FXOchartist]

In the world of forex trading, there are thousands of brokers who offer services in the financial markets. For traders, choosing a broker is an important priority for security and comfort in carrying out their trading activities. However, not all brokers in the world of forex provide the same services, there are even websites designed to look like brokers with good reputations to steal clients' identities, so be wary of phishing.

So what are the characteristics of a scam broker that need to be understood to minimize the risk of being trapped by the wrong broker? Here are some things you might need to know that are important for the security of forex investments.

1. Unregulated. Regulation is very important for investment security because regulatory bodies create strict rules to protect investors
2. Not transparent. This broker does not provide transparent information about fees, regulations or trading policies.
3. Promising big profits, forex trading is high risk, avoid brokers who offer unrealistic profits.
4. Bad order execution. Transaction speed is very important for traders so that they get the best price when placing an order, but brokers who often experience execution failures, unreasonable slippage, requotes are a sign of a broker scam.
5. Without supervision, there is no authority to monitor their activities, and traders have no legal protection if problems occur in trading transactions.
6. Price manipulation. They display inaccurate prices, especially during periods of high volatility which is detrimental to traders.
7. Poor customer service. When customers need a solution to the problem they are facing, there is no response or answer to solve the problem.
8. False identity. These brokers use fake identities or claim affiliation with well-known financial institutions to build trust.
9. Difficulty withdrawing funds. They may charge high withdrawal fees, delay the withdrawal process, or ask for unreasonable documents to verify a trader's identity to frustrate traders and hold funds in their accounts.
10. Trading Restrictions. They may prohibit scalping, hedging, or using certain trading robots. This can limit a trader's trading flexibility and opportunities.

Why did I choose FXOpen? Because this is not a broker scam, this company is regulated by ASIC, FCA and Cysec, and thank God so far it has become a trusted broker, the withdrawals I make are always processed.