Forex trading: what is it and how does it work?
Forex or commonly known as the Foreign Exchange Market is mainly a global decentralised or more commonly over the counter market for trading various types of currencies. The forex market is an unregulated market that determines the foreign exchange rates for all types of currency. It is in simple words a market for the buying and selling of national currencies and these markets are considered to be the largest and liquid asset markets in the world.
The forex market is mainly where traders speculate the increase of a currency’s price to make profits. Now since Forex is an unregulated market there are higher chances of scams and fraudulent brokers emerging. This market is slightly complex and most traders have a forex broker that guides them along and helps them navigate through this tricky market.
Since many traders have limited knowledge of forex in the beginning their brokers can easily scam them and they could lose tons of money. This is mainly because a few traders are new and inexperienced hence they fall victim to these vicious traders.
Is your trader a Scam or Legit?
Now to further elaborate on whether your trader is a scam or whether he is a legit let’s go over a few precautions that you need to take while trading in this market and a few ways you can identify if your trader is a scam or whether he is actually legit. Now let’s go over a few ways you can ensure that the trader is legit and not scamming you for millions. Click Here
4 steps to ensure your trader is not a scam:
- Stay away and avoid cold contacts:
Now the number one tip I will give you is to avoid any broker that contacts you from a company you’ve never worked with. Now you need to refrain from falling into the trap no matter how much returns they promise you they’re a scam. Another tip is to avoid any broker who touts their own horn and who uses sales tactics that almost feel pressurizing.
- Engage in a conversation:
Whenever you’re looking for a broker you have to be comfortable around that person since you’re trading with them thereby you should ask tons of questions. The more questions you ask the better and ask questions about previous trades or the company. If your broker is unwilling to answer they’re definitely going to scam you. Avoid any broker that is not ready to answer your questions and provide you with complete knowledge of the company.
- Do your own research:
This is very important when you’re trading with a new brokerage or a broker. You need to have adequate background information which includes the brokerage history, number of trades, number of satisfied customers, profits, trading history and the customer reviews. Do a thorough background check before actually trading because this is important to check if the broker is legit or a scam. Try searching the financial regularities since these finance professionals are supposed to be directly registered with the federal and state security regulators.
- Look at your statements regularly:
Now this is another key step is checking whether your broker is scamming you. Do not put your statements on autopilot and don’t leave them alone. Check them on a regular basis and read the fine print. Ask questions if you have any misunderstandings and if the broker gives you weird complicated assurances instead of giving you the straight answers please withdraw your funds and complain to SEC commission.
Fundstrace to your rescue:
Now you might be wondering where I’ve gotten all this information from, well let me introduce you to Fundstrace.
Fundstrace is a website made solely for all the new traders and Forex investors. I went and found all this information on the website. In addition to being an excellent source of information, Fundstrace specializes in all types of Forex scams and is known to help customers report scams and recover money.
Do check out the website and if you ever feel like anyone is scamming you or your broker is being shady, report it and this company will help you. Chargebacking will help you identify whether the broker is a scam and if the broker is then they’ll help you report and alert the appropriate authorities to recover your funds if you lost any.
