Over the past few years, the popularity of Forex trading has grown to such an extent that these days Forex trading attracts a huge number of trading novices dreaming of being financially independent.
Unfortunately, the thriving interest for Forex trading also comes with the growing number of mischievous brokers who try to use this upward trend for their advantage and engage in fraudulent broker activities.
Once you google “Forex broker scams”, you can see dozens of cases of unscrupulous and unreliable brokers who have scammed their customers.
Therefore, it is utmost important to identify which brokers are reliable and which are the opposite. Lets’ check how you can sort out the good brokers from the shady ones.
Forex broker reviews
There are a few reputable review sites where you can find a lot of information and feedback from existing customers about each Forex broker. For example, you can check out a Tickmill review at https://forexrev.com/broker/tickmill/ or comments about the Purple Trading broker at https://forexrev.com/broker/purple-trading/.
The primary advantages of such websites is that the average rating is calculated solely based on ratings given by real customer and all the comments come from them as well. It allows you to get a good overall picture of every broker, like Purple Trading or Tickmill broker.
Therefore, if you happen to see that there is a lot of negative feedback about certain broker and you can spot some patterns, it should raise a red flag.
Nevertheless, if the vast majority of reviews is positive and only some of them are negative, you can be calm. It is difficult to please everyone and probably the negative feedback results from lack of trading knowledge of users, not incompetence of a given broker.
It is also important to choose a regulated broker with regulatory information listed on their homepage. Legitimate brokers are required by law to register with the FCA in the UK, ASIC in Australia or the SEC in the US.
Since such data cannot be manipulated, you can secure that a broker of your choice is reliable and operates in legal manner.
Last but not least, you can also ask around your friends or family members who will always be the best source of valuable and unbiased information. If they have been into Forex trading for a long time, they can easily help you to choose a reliable broker like Tickmill or Purple Trading broker.
Nevertheless, remember that recommendations from investment advisors may be biased and since their reputation is on the line, it is likely they will try to lead you to a mischievous and unregulated broker.
As you can see, there are numerous ways to make sure your Forex broker is trustworthy. A reliable broker has a huge impact for the success of your Forex trading career so you cannot make snap judgments and you should always verify the reliability of brokers scrupulously.