Introduction
A key prerequisite to becoming a successful forex trader is preparation. Awareness is a key objective during your early stages of development, and one of the best ways to get started is to read through a few forex trading FAQs related to the forex industry. We have put together below a shortlist of basic forex trading FAQs related to finding a trustworthy broker. If you have any additional questions or wish to report a broker, we invite you to leave a comment in the space provided. We are here to help you find a safe broker and avoid forex fraud. You are your first line of defence against forex fraud!
Questions
How do I know if a forex broker is genuine?
First, read trusted reviews. It is wise to choose a broker that complies with a major regulator, such as the FCA in the UK, the CFTC in the US, ASIC in Australia, or CySEC in the EU. Check with your local regulator to see if any complaints have been lodged. Also, check the registration credentials posted on the broker’s website, and look to see if more information is provided to confirm its legitimacy. Lastly, search the web for complaints or bad news about your candidate. For peace of mind, always use a trusted and recommended broker.
I have been scammed by a forex broker. What can I do?
First, report the broker to your local regulator, the police authorities, consumer protection organisations, and to your bank and the broker’s bank, if known. If you paid by credit card, ask your bank to reverse the charge due to fraudulent activity. Unfortunately, recovering your funds can be a difficult task under these circumstances, especially if the broker is in a foreign jurisdiction. If you have been a victim of fraud please contact the appropriate authorities.
Which forex brokers are the safest?
The safest brokers are the ones regulated by a Top Tier regulatory agency. If it has a physical office presence in your country, then better still. Lastly, we provide a list of brokers that we have reviewed and determined to be the best and the safest in the forex industry. These brokers have an excellent track record and are worthy of your consideration. At Forex Fraud we keep an up to date list of the safest brokers on the market.
What are some common forex scams to watch out for?
Unfortunately, fraud and scams in the forex industry are common, especially when using a foreign or virtual broker with little to no regulatory oversight. Schemes involve gaining your trust and then disappearing with your deposit, personal identity and payment information. Signal and robot sellers are often suspect, and although many money managers are legit, there are also shady ones that will churn your account or steal your money outright. Also, beware of ads on social media promising guaranteed returns.
Who regulates forex brokers?
Government agencies in developed countries regulate forex brokers in their respective countries. The Top Tier ones are in countries such as the UK (FCA), the US (CFTC), France (ACPR), Germany (BaFIN) and Australia (ASIC). Lower-tier regulators may only register brokers and provide little if any oversight. Regulators are your friends. Get to know your local regulator.
Are managed forex accounts safe?
A managed forex account is an option worth considering if you are not confident with traditional forex trading. There may be a promise of high returns, but there is also high risk. There are shady money managers. Perform your due diligence. Check with your regulator. Monitor their performance, and report any complaints. We also keep a comprehensive list of recommended forex account managers.
Is copy trading profitable?
Copy trading is another option that can be profitable or not. It is wise to use a safe broker that offers this service. Review the performance records of your list of experts. Play one against another, if possible. Monitor their performance and switch, if you want. Even experts have lost trades. Gains are not guaranteed. Find out more about Copy Trading.
Is copy trading safe?
Copy trading can be a safe alternative to traditional forex trading, but only if you are with a safe and reputable broker. Even with the best service, you may still have net gains or net losses. Find out more about Copy Trading.
What’s the difference between an ECN and a market maker?
Brokers can be a market maker or in an electronic communication network (ECN). An ECN connects directly with a liquidity provider in the market, while a market maker sets the ‘Bid/Ask’ spread directly. ECN spreads tend to be tighter. ECNs make money if you make money. A market maker may profit at your expense as it has an incentive to do so by offering wider spreads from time to time. Read our latest ECN/Market Maker Comparison.
How long will my withdrawal take?
Brokers typically say that a withdrawal request will be processed quickly or within 48 hours. There may be more delays, however, based on your payment method or if your ID documents are not in order. Check with your bank for information on payment methods. If a bank transfer goes awry, it can take weeks to receive your money. For more info on withdrawal times see our latest broker reviews.
What are some common issues with withdrawals?
Withdrawals are a good way to test your broker. Problems can occur if your verification documents are not in order, if there is a high minimum, or if bonus restrictions apply that block a withdrawal. Banking information can be outdated, or the broker may be in financial trouble or fraudulent. Find trusted brokers with positive withdrawal ratings.
Where can I find a list of scam brokers?
Regulators and internet broker review sites assemble lists of scam brokers to be avoided. Your regulator is your friend. Check its website for information. Unfortunately, in today’s virtual world, many shady brokers can imitate legitimate brokers, change their storefronts overnight, and avoid prosecution. Be wary and do your due diligence. Your local regulator should always be your first stop if you do not trust a broker.
Where can I find tips on forex trading?
The staff at ForexFraud.com have prepared an extensive library of forex trading tips, strategies, general information, and a free forex trading training course. Remember, preparedness is the first step to becoming a successful forex trader. Awareness is key. You can also complete our free Forex Trading course to boost your forex knowledge.
What is the minimum deposit for a forex broker?
Broker minimum deposits are not consistent across the industry. A typical minimum might be 100 units of USD, GBP, JPY or EUR, but it depends on the broker. Some require no minimum. Some vary minimums with different account classifications. You will also be required to choose a currency for reporting purposes. Be aware that there may be a minimum trading amount that applies to your chosen asset for trading. Our latest trusted broker reviews contain information on the minimum deposit for each broker.
Are forex trading robots safe?
The selling of automated trading robot software and signals is problematic in the forex industry. Market conditions can quickly change, rendering many robots and signals ineffective. Fraud is also prevalent in this sector, so the buyer should be wary and aware of potential scams. Read our latest guide on avoiding forex robot scams.