Forex scams: Onlinemarketshare broker helps to distinguish a reliable broker from a fraudster
It is not surprising that all brokers in the market declare their reliability and integrity. The problem is that this is not always true. Every year, dozens of brokerage companies appear on the market and fade away in less than a year. Brokerage companies are closing due to a wrong business model, due to problems with laws, or because they are fraudsters. How to distinguish an unscrupulous broker from a reliable company such as Onlinemarketshare broker?
Forex market regulation is carried out according to established rules and laws, national laws and regulations, and internal market rules for brokers like onlinemarket-share.com. The business rules for a financial company that is legal in one country may be a violation in other countries. But the difference in taxation is not the biggest issue. Much worse is the situation of money laundering or data theft.
The daily financial turnover of the Forex market exceeds $ 4 billion. It’s a large amount of money, and it attracts scammers that create non-trading risks for the trader. Fraud companies claim to work and act legally. A trader needs to understand the nature of the financial market to avoid scam. Onlinemarketshare forex broker suggests several distinguishing features that help you know how reliable a broker is.
How do brokerage companies resolve contradictions and bring their activities to the legal field? First, the company selects the country of registration. Cyprus is very popular in the forex market: this republic has mild requirements for financial companies, and the legislation allows high-risk financial transactions. There are so many companies from Cyprus these days that brokers who plan to stay in the market for many years choose other countries. For example, the Onlinemarketshare forex broker is registered in Hong Kong.
Wherever a brokerage company is registered, this is a specific signal that a trader should hear. If a brokerage company is registered in an exotic country, for example, the Republic of Tuvalu, it should not be trusted. It is impossible to find a regulator that operates in the Republic of Tuvalu. Onlinemarketshare warns: in the case of a conflict with such a broker, protecting your interests will be problematic. The activities of Onlinemarketshare are regulated by the International Financial Regulator, which is also registered in Hong Kong.
During the registration in a brokerage company, the trader signs an agreement. This is an internal document that describes the terms of cooperation between the client and the broker. Onlinemarketshare reviews write that this agreement is the primary document regulating the relations of the parties and that it is the starting point for the litigation in case of a conflict. Before signing, this agreement needs to be studied carefully. In most cases of online trading, this agreement is placed on broker website in Terms section and determines rights and obligations of both parties in case of cooperation.
Several important nuances will point out the dishonest broker. For example, it is important to study the rights and obligations of the parties. Carefully read the user agreement and find out what exactly the company offers you. It is most likely an unscrupulous broker or just a scam if a company does not have any agreement published. Onlinemarketshare broker recommends avoiding such a firm if its representatives do not ask you to provide any documents or tell you that the agreement is unneccessary.
As indicated above, the activities of each financial company should be regulated by special authorities. This means the following: upon registration, the company officially purchased the license and fulfilled some other conditions. The company also pays membership dues or another type of premium. This money is accumulated in a special insurance fund. In case of problems with the brokerage, the regulator should resolve the disputes of the parties and compensate for losses in bankruptcy. Moreover, if the company violates the rules of work, the regulator may revoke the broker's license.
There are many regulators in the market from different countries. A good sign is the registration state of the broker and the regulator is the same. It means they operate in the same jurisdiction and under the same rules. For example, Onlinemarketshare broker is registered in Hong Kong, and the International Finance Fund, which regulates this company’s activities, is also located there. If the regulator is registered in some exotic country, this is a warning sign. The regulator is not able to solve the problems of a broker from another state. Check the history of this institution: the easiest way to do this is to find its website. The longer the company’s history, the less is the cause for concern. The nature of the forex market does not allow its participants existing offline only. This is a scam. Onlinemarketshare broker recommends to stay with companies that place full package of agreements and KYC documents on their website - it’s a guarantee that the broker has all the proper background.
A trading terminal is a software solution that helps a trader to open and close deals. International currency market is 99% digital nowadays, so it is a necessary instrument that allows you to participate in trades with other traders around the world. Onlinemarketshare broker uses the Metatrader4 trading terminal. This is a proven solution that has been around the market for over ten years. Thousands of traders tested it at work. MT4 is known as a convenient multi-functional program which has almost no failures and malfunctions. Therefore, the risk of technical problems with the program is minimal.
The use of custom programs for trading does not directly indicate that the company is a scam. But the level of data protection in the self-written program is unknown. It is also unknown if the software is stable at high loads, and whether it will slow down during peak hours.
User data protection
The data on the forex market means all the information about the trader and his activity. This is personal data specified during registration, data on the amount of money in the account, the number of transactions, and the amounts withdrawn from the account. All this information is considered secret. Attackers can use it to damage the trader activity or his or her property.
To prevent this from happening, reliable brokers such as Onlinemarketshare forex broker use different levels of data protection. Firstly, the company’s servers must be physically protected. The server room must be protected from unauthorized access. Also, it is crucial to maintain a constant temperature to avoid a malfunction due to overheating. The exchange of data between the user and the trader’s website must occur according to a secure protocol. On side of company, only a few employees with the highest access can see user information.
Two troubling signs indicate a broker’s dishonesty. The first sign is when the company does not mention the protection of user data. All well-developed countries have laws that oblige businesses to protect personal data. If the broker does not obey these laws, most likely it is a scam. Another alarming sign is if the company is trying to get secret information from you, for example, a credit card CVV2 code or credentials for a bank account. Onlinemarketshare and other reliable brokers never do this.
Account Blocking Rules
Unfortunately, unscrupulous participants who use brokers for illegal purposes also exist in the forex market. The most common causes are money laundering, illicit transfers, and so on. There are also attempts to withdraw funds to someone else’s card or e-wallet after third parties have access to the client’s account. Therefore, the brokerage company reserves the right to block the customer account. But the rules for blocking an account should be clear and transparent, as well as the mechanism for unlocking it when a client wants to regain access to his account. If there’s a sign that the account was created for illegal purposes, company can block this account account without notifications and explanations, otherwise there’s a risk of security breach.
Leverage is financial assistance to a private trader who enters the market with the help of a broker. Leverage allows you to increase the size of the trading lot at the expense of the broker. The size of the shoulder can be different, from 1: 2 to 1: 1000. There is nothing unusual in leverage trading - although transactions of this kind are prohibited in some jurisdictions. In some countries, leverage is limited. A trader should remember that though leverage trading has a risk of losing money, it also brings a chance of high profit. Reliable brokers, for example, Onlinemarketshare, use moderate leverage, for example, 1: 300. You should be wary of the broker that offers massive and unrealistic leverage, for example, 1: 10000.
Several other signs will help to evaluate the broker. One of them is the quality and content of corporate site. Companies who’re not going to stay on the market would never invest any solid money in site development and functioning. And for others who care about their reputation website is the face of the company and the main channel of work. Bad website shows that the company does not intend to exist for long: most likely, having received the first deposits, it will disappear. If the site has a lot of errors and mistypes on it, or part of the functions does not work the way they should, it a sign of a possible fraud.
The history of the company is also a critical factor. Forex is quite a dynamic market, that’s why existing company cannot operate without receiving any reviews or mentions. New brokers are often better than old ones: they offer flexible terms to attract more customers. It is difficult for new brokers to compete with the heavyweights of the market. Onlinemarketshare has stood the first year on the market with dignity, earning good customer reviews.
Check out the reviews published. Besides, there are specialized sites that provide broker ratings. Be careful about such ratings: some websites can place negative reviews just to attract customers to some competitor. Young brokers do not immediately get into such ranks, so they may not be on the lists.
Thus, having checked the broker company, you will be able to determine the way it works, and whether it is worth trusting your money. Onlinemarketshare is a conscientious broker with flexible conditions and no commissions, which is suitable for both beginners and experienced traders, so it’s a good choice for those who want to trade on a regular basis.