The headache of any novice trader is the choice of a broker. Preferences come with experience but, unfortunately, when receiving this experience many have to fill up unpleasant cones. Trading is a mutual business, both a trader and a broker want to earn money and it is very desirable that this earnings to be stable. It should be noted that, like in any business, there are dishonest companies to be avoided, so that later, in powerless anger, do not cry to the whole Internet about another unscrupulous broker. The final decision on whether or not to collaborate with a particular platform is made by a trader, therefore, no matter how you would like to transfer the blame to someone else, you should always start with yourself.
It is interesting to know what brokers themselves think about this problem. Bytrend.com (bytrend.com) legal specialist Tomasz Bailich shared some recommendations on how to identify fraudulent brokers. They are called “kitchens” in the trading environment, and it is vital for newcomers to know some typical signs that will keep them away from these kitchens. At the same time one must understand that fear has big eyes and some moments that previously signaled the unreliability of the broker are now perceived not so unambiguously. The leader among them is offshore registration. No doubts the European license is much more reliable but it is also much more expensive plus it may take several years to get it. Guess at the expense of whom such a “respectable” broker will cover such costs? The initial enthusiasm from working with a “trusted” broker can quickly transform into disappointment from draconian trading conditions. Modernity dictates its own laws and at the moment offshore registration in itself is not a serious sign of a fraud broker.
But the lack of contact with managers and support services is already an occasion to think. Reputable companies (regardless of the region of registration) value their clients and try to find a compromise solution in problem situations as quickly as possible. The absence of such a desire as well as the lack of a prompt reaction to appeals clearly demonstrate the broker’s attitude to customers.
The next point that for some reason many overlook is the contract. Yes, it is written in official language; yes, it is quite voluminous; yes, I want to start trading faster, but it is precisely the agreement that will regulate the relationship between a trader and a broker in the future so it is simply necessary to read and understand (!) it. Particular attention should be paid to the following points: the right to close an account, the right to block transactions, the right to block the withdrawal of funds, the rules for working with bonuses, the right to change the terms of an agreement. If you do not bother with this in advance then no reliable registration will guarantee a safe trade. Any disputes in any jurisdiction are based on clauses of the contract with which the trader voluntarily agrees when starting cooperation with the broker.
There are absolutely primitive tricks that still work. One-day companies may use names that differ slightly from well-known reputable brokers. Thus, fraudsters use brand recognition and customer carelessness for their own purposes. The deception is revealed quite quickly but as a rule it is already impossible to return the money.
The promise of guaranteed profit is still very widespread, regardless of experience and deposit. Such promises are activated during periods of crisis and almost always find gullible victims. From the same series – the promises to open a magical strategy on unique courses (it is quite possible that paid). Even a superficial acquaintance with the materials on trading that are in the public domain gives a definite answer that such strategies are impossible in principle.
It is always worth keeping in mind that trading is not a Field of Miracles, it is a rather complicated work requiring certain qualities and at least basic knowledge.
