Opening a forex trading account is a task that requires nerves of steel, especially for those, not familiar with the system. You might have heard about several Forex cons that caused individuals to lose their hard-earned money all because they fell prey to unreliable and fake brokers. Fraudsters such as these generally register their company as singular official foreign exchange brokers. They encourage potential clients to open accounts through them and then eventually embezzle the deposited funds.
With such brokers, it is not uncommon to be denied access to one's hard-earned cash. Once a client requests withdrawal of funds, after having opened an account, the broker refuses to honor the request. These fraudsters totally ignore the request or find various reasons to withhold the cash. Sometimes, they simply close the account. This usually happens with those who do not live in the country or region where the broker is registered. Otherwise, one would have a chance to sue them and file a petition for the fraud committed.
For those seeking to start up a new Forex account, below is a guide that will assist them in avoiding the pitfalls and finding the right broker.
1 - Compare on the internet
In addition, explore the trading platforms they offer. This is among the best indicators of a broker's dependability. Offering dealing platforms such as Meta Trader or GTX ensures that the broker is registered which is definitely a good sign.
Other areas for comparison include the spread for each trade, the leverage plus the bonus amount they offer and the minimum balance necessary to open an account. Looking into these various features will assist you in analyzing a broker and eventually finding one best suited to your preferences.
2 - Demo Account
The opportunity to trade in a demo account with virtual money is an important feature - one that can help you determine, whether the broker is a reliable one or not. Trading in a demo account permits you to learn the reigns of trading and that, while in the meantime using the features the broker offers such as the platform, spread and leverage.
3 - Discuss in the Forums
One could easily find numerous Forex trading discussions in online forums where people share their thoughts, ask questions and discuss the marketplace. Forums such as these can assist in learning what other traders have discovered through experience. These discussions can provide an insight on all topics, from trading experiences to experiences with brokers. Prior to choosing a broker, one should discuss the various features offered with other experienced traders within these forums and therefore gauge the broker's reputation in the market.
4 - Work with Helpline
Do not hesitate to ask questions through the online chat service a brokerage offers. The service exists to help, so make sure you ask questions to alleviate any ambiguity attached with the trading process, platform, demo accounts, or any other issue you feel a broker should assist you with.
Clearly, there's a lot to think about when choosing a broker. However, by using these straightforward guidelines, you will be able to narrow down the list significantly. In the end, it more or less depends upon one's own needs and preferences. The past years due to the dramatic increase in forex traders more and more brokers also join the market and a large number of fraudsters also emerge alongside. The better one researches, the greater the chances he or she will not only avoid a fraud but also make the best possible choice. http://www.forex.com