Any signs that a forex broker might be a scam?

@weilo_daniel - 9 months ago - Forex Brokers

Greetings,

I would like the house to help me on this one. How do I know a forex broker might be a scam? What are those subtle things to look out for that many people overlook? I am asking because forex trading is hard enough so I don't want to make the forex brokers richer.

@cahaya_dewan - 9 months ago

First sign I look out for is the broker not displaying their regulation & license information conspicuously. They seem to be shy about telling you if they are regulated they position the information in a hard to reach corner of their website. If a broker does not have a license, don't patronize them.

Second sign for me is when the broker offers too many account types based on bonuses. It almost seems as if they are trying to lure you in with bonuses. They offer so many account types that it seems absurd. An example of this is https://www.ironfx.com/za/trading/account-types/

Third sign is when the broker offers too little information (especially on spreads) on their website. It almost feels like the broker is trying to hide something about the spreads by giving you just a little information.

Fourth sign is when the broker has an overdependence on MetaTrader. Some scam brokers don't bother investing money on research & development of their own trading platforms so they just offer MetaTrader only. These scam brokers may not even provide demo accounts for trial!

Fifth sign is negative reviews. if other people don't seem to agree that your broker is okay, then you may be unto a scam. I mean the proof of the pudding is in the eating so others have to agree that the broker is great.

Sixth sign is a terrible looking website. Many scam brokers don't spend money to develop a state of the art website so their website looks like something put together on a budget.

@mr_casey - 6 months ago

1. The broker allows you open an account without submitting your government issued ID cards or they even accept expired ID cards.

2. The broker allows you deposit funds from a third party account (example from your friends account)

3. The broker does not provide a demo account for you to try their services for free

4. The broker is not regulated