You want to generate extra income or start a new career, and hence you want to try your trading skills. To trade in financial markets and make profits, you need the help of an online broker. Since online brokers provide you with a service, you have to know the level and quality of their service before you can pick one. More importantly, you have to be sure that you are not about to sign up with a forex scam broker. How can you find that out? Here are some indicators for you to know that your broker is not a scam.
Indicators That Tell You Your Forex Broker Is Not a Scam
· It Has Reviews to Prove That
When people say bad things about a trading platform or online broker only because they did not have the best experience, they start a wave of negative comments on the internet. However, if the platform is not as bad as some customers try to make it look, you will always see a counterforce as well. The counterforce is in the form of reviews that explain the side of the trading platform or broker. You can take the example of Neuer Capital. If you are in doubts about this online broker before you start trading forex currency pairs, you can read this review that proves it a no scam trading platform.
· Its Safety Measures Are up to Par
If a broker is there only to make money through scamming, it has no reason to pay attention to and put in efforts for strengthening the security of its traders. If your broker has proper encryption standards in place to protect your information, and segregated accounts for your funds, you can be sure that you have found the right one. The fact that your broker has gone out of its way to provide you with these facilities shows that it cares about its traders. On the other hand, the scamming brokers like to talk about money only. They only talk about how you can deposit your money with them and why it is so difficult to withdraw the same money from your account.
· It Asks You to Deposit a Small Amount
This particular feature does not always hold true, but it does give an indication of the intentions of the broker you are signing up with. If you are approaching the wrong broker, you might be asked to deposit a lot of money right from the start. But how can you deposit a lot of money when you are trading for the first time and only want to test waters first? The right brokers understand the trends of the industry. For example, a prevailing trend in the trading industry is that there are a lot of new, young, and student investors in the market.
These people do not have a lot of money. For that reason, the right brokers have lowered their entry requirements for traders. You will notice that they require you to deposit a small sum of just $250 to start your trading account. Again, it is not a guaranty that your broker is not a scam, but it surely puts your broker in the category of the “good ones.”
· It Is Not Pushy
That’s one of the most obvious signs that you have signed up with the right broker. If you are with the right broker, you will notice that there is no pushing around. In most cases, brokers like to push their traders to use leverages. Yes, leverages are good but the broker should not be pushy about them because they can be equally ugly as well. In a similar fashion, the broker talks about trading in an informative and educating manner. Scamming brokers, on the other hand, are always focusing on how you can become a millionaire in no time without doing anything. They sound too good to be true, and they are exactly that.
The trading platform you choose today is going to shape up your future in the trading world. The right trading platform will make trading a pleasant experience and thus you will feel the urge to move forward and start your trading career. On the other hand, scammers will deprive you of your money and disappear like they never existed. Prevent yourself from getting scammed by reading online reviews, confirming security measures from the broker, and verifying the regulation status of the broker before you sign up.