How to Determine if your Broker can be Trusted?

[SweetAnalyst]

Hi. I am new to this forum and I just want to ask some opinions you can have in your mind about Forex brokers. I am curious on how to determine if you got a trusted broker of just having those scammers running around.

Please help.

 

[mlawson71]

Generally speaking it's a good idea to check whether or not the broker you want to work with is licensed and regulated by a respected regulator, like the British FCA. Check whether the regulator has issued any warnings about them, as the FCA often does. Then check whether people, ordinary people I mean, have left any reviews about that broker online. Check what their terms and conditions are in detail. If you are satisfied with what you've seen, open a demo account with them, trade on it for a bit, call them a few times to determine what their customer service is like. If you are still pleased with them, open a live account and invest a small sum of money - small enough that you can afford to lose it - then soon after withdraw it to observe what their withdrawal process is like. If you are still satisfied you've likely found a broker you can trust.

 

[progix]

If you are looking for fund safety then i guess money is not safe anywhere however it is good doing necessary due diligence before investing with any business. I guess forex trading can only be a legit business available online even then we need to check if the broker we are going to invest our money is safe or not. Reviews sites might be helpful to some extent and i think whichever broker you choose, try to keep necessary capital with them and withdraw the profits earned from them so the ROI should be in your personal wallets and not with the broker you trading.

 

[Mack05]

Safer Investments

The trusted broker can be defined as a broker with secured payment methods & system. Apart from secured payment methods & system, a broker should keep the funds in segregated accounts. The segregated accounts help to keep the funds safe for the investor which the broker does not have an access to. Also, some investors keep the regulation as one of the factor for safer investments. However, the regulations are not one of the reasons for safer investments in this decentralised market.

 

[dbphoenix]

Never use a broker who's married to a travel agent.

 

[gerryg]

Hi. I am new to this forum and I just want to ask some opinions you can have in your mind about Forex brokers. I am curious on how to determine if you got a trusted broker of just having those scammers running around.

Please help.

Time will tell. We all have different requirements to the brokers, somebody needs tight spreads, others execution, other wants to broker which will dismiss their arbitrage techniques, other demand fast payouts.
For now you can try any to get a feel what you NEED.

 

[Remaley]

Well yeah,

Although is possible for regulated FX broker to go down, with the right regulation at least your funds are secure in segregated account like Mach05 already mention. Obviously you should not blindly trust what the broker say, but to actually check the regulator page to see if this broker is really in their list with regulated brokers. There is search in their page so you can easily search for your broker:

https://www.fca.org.uk/

Apart of that you obviously can read reviews here and there - I strongly recommend to read from at least 2-3 sources, just to be sure. For FCA regulated brokers you may check here:

http://www.toponlineforexbrokers.com/FCA-regulation/

If you have more questions aks.

 

[juuan]

R e g u l a t i o n

 

[gerryg]

R e g u l a t i o n

Yeah, at least CySEC or better. Like FCA, NFA, ASIC watchdogs.

 

[juuan]

Yeah, at least CySEC or better. Like FCA, NFA, ASIC watchdogs.

Watchdogs, exactly like that