Rules for users to pay attention for choosing a broker
As we know, currency trading in the Forex market is through a terminal that is installed on a computer, while you need to be able to choose the right forex broker, brokers must be licensed. When choosing a forex broker, you need to look at both, because there are brokers-scammers. Forex brokers are always trying to tell traders what they supposedly want traders to constantly be in profit, but in fact this is not so, it is beneficial for brokers to let traders burn through. If a trader decided to invest his money in his account of the trading terminal, while this money is in the broker's accounts. And in the future, forex brokers make good money on this.
What frauds happen on the part of brokers?
1. Brokers constantly take commissions for transactions made by a trader, i.e. for the purchase and sale of currency.
2. It is beneficial for brokers when a trader uses a large leverage. With a large leverage, a trader can lose all his money, and this is beneficial for the broker, because this money will go into the broker's pocket.
3. Brokers come with incorrect schedules, big delays in selling and buying currencies, sharp price spikes, and brokers give quotes that do not match the real quotes on the Forex market. Therefore, all this is illegal by brokers.
Why can a broker be deprived of a license?
A trader who has replenished his trading account, but he may not start trading, because the following happens - the broker loses his license, as a result, the trading platform closes. And the trader loses his money, his money goes into the pocket of the broker.
You should pay attention to the licenses of brokers, some brokers have licenses (maybe those are fake), while others do not.
Indeed, the broker simply hides behind its “license”, while luring more people to it and persuading them to invest as much of their money as possible.
1. If there is a violation on the part of the broker (company), the Central Bank may revoke the license.
2. Also, brokers are deprived of their license - if they have problems with the tax, as well as problems with the law (forex brokers are legally based in offshore companies in different countries, so it’s hard to find them, they withdraw money through offshore companies).
A trader can return part of his money from a fraudulent broker if the trader has not concluded a void transaction (transaction with violations). Also, to return his money from a fraud broker, a trader can contact specialized companies that can solve this issue in a short time.
Therefore, traders need to bypass the tenth side of these scammers.