Early Warning Signs that your Forex Broker a Scam

A trader whom we shall call Mr Dee sees a web page advertising a chance to make money from trading Forex. But this web page is one with a difference. He is taken in by the glamorous video of a pretty brunette detailing all the benefits of trading with the broker whose sales page he is looking at. Just then, something she says catches his attention. The broker is offering him a 100% bonus. He cannot believe his ears, but when he decides to pitch his tent with this broker and wires in $10,000. To his surprise, he is credited with an extra $10,000. But that is when he is told by his broker that he has to trade a certain number of times before he can withdraw any profits. He keeps trading, and when he then decides to make his first withdrawal after fulfilling the terms of the bonus, he gets an email saying he has allowed third party trading on his account, and his account is suspended and all funds seized. The broker cuts off all communications with him, and he is left bemused. Further investigation reveals that the broker is in a location which is completely unregulated.

 

In another scenario, another trader notices that he keeps getting stopped out in one of his Forex accounts even when the price quotes on other trading accounts indicate that the price action still had a few pips to go. He is at a loss as to why this is the case, and all emails to his broker are met with unconvincing responses.

 

In yet another scenario, trader notices that any time he trades high-impact  news items, and his trade is in a profit, his trading platform freezes up, and he cannot close his trades, until when the market has probably reversed against him. When he tries to withdraw any profits, he has made, his broker finds one reason or the other not to honor the withdrawal request.

 

If your broker or any other broker you know has engaged in one or all the practices mentioned above, then that broker is a scam broker. The sad thing is that many cases like this occur, and they are not rare; they are commonplace. For any genuine broker out there, there are 10 scam brokers in operation. The wide geographical location and the absence of a specific global legal framework has made it difficult to pursue and prosecute such scam brokers, and traders have to rely on personal due diligence and a bit of luck or prayers to ensure that they pitch tents with the right brokers.

 

Here is a list of identified scam brokers, who have closed shop and disappeared with traders’ funds.

 

  • CrownForex.com
  • CRE Capital Corporation
  • CDH Global
  • Forexgen.com
  • GCI Trading.com (GCI Financial)
  • BForex.com

 

There are a whole lot of others out there. All you need to do is to check on Forex forums, and you will get so much information that it will almost be criminal for you as a trader to fall into the hands of these scam brokers.

 

Article was written by Alexander Collins. As a general rule, always choose brokers that are regulated and have a good track record when it comes to trading conditions and withdrawals. Stays the question: “How to choose a Forex broker?” Visit my Forex blog to learn how to choose a broker wisely, and what unethical tricks Forex scam brokers use to rip of retail traders.

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Who Says You Can’t Make Money On The FOREX Market?

There are a lot of scams and get rich quick schemes being touted in the media, both on and offline. While naysayers might tell you that you can’t make money, and that you’ll certainly loose money, when investing in Forex, know that with some basic education on the Forex market and how to trade, you can make money–really good money–with Forex. Here are four tips to help you as a beginning Forex trader.

Don’t Jump In Head First: Unless you’ve lost your job, don’t quit your day job until you are making at least half of what your normal pay equals, on a consistent basis. If you are used to brining home $4000 a month, make sure that you have four to five months where your Forex trades earn you a minimum of $2000. Treat Forex like your part-time job while you learn the ropes and make your trades in the evenings, weekends or vacation days. Since the Forex market is open round the clock, you can make trades anytime. Going from part-time to full-time income probably won’t take you as long as it takes to go from $0 to a decent part-time income.

Start Small: Once people begin to see just how profitable Forex is, they tend to want to mortgage the family farm, so to say, in order to maximize their profits. This is a key reason people doubt that you can make a long term living trading Forex. Assuming you have a steady income now, spend no more than a week’s pay for your startup investment. If you have a family or people who depend on your income, you might want to be a bit more conservative. When investing it’s best to take small, steady steps rather than huge leaps if you are planning to be in it long term. As you make more and more profitable trades, you can put more money into them thereby increasing your risk and profits.

Get the Support of Your Partner: Far too many people who get into new businesses without telling or getting initial support from a partner. You really need to do this especially in a marriage, long term relationship or when your finances are combined because your partner can be your number one fan and support you through the learning stage when more losses tend to occur. On the other hand, they can also be your worst enemy if you start spending your time and money at the computer making trades when they don’t agree with what you are doing.

Use Educational Tools Wisely: Remember to treat any and all programs and Forex trading software pieces as tools, not a fast track to earning cash. Forex is part luck and part knowledge. Using the knowledge you learn will put you in a better position than someone who just relies on luck.

Follow these tips as you start making money on the side with Forex to show others that you really can make money with Forex. Remember to treat it as a business, make trades and study as much as you can on a consistent basis and a year from now you bank account could be a lot bigger!

Chad Smith is a Markham car insurance agent who spends a great deal of his spare time watching the foreign exchange markets.  If you’d like to get in on currency trading you’ll need to start somewhere.  There are a great deal of apps which will allow you to play the market using fake money.  When you feel confident you can move up to trading with your real money.  If you’re short on cash you can always reduce your expenses.  One thing that many people overspand on is their car insurance.  You can compare car insurance quotes at Kanetix, and often considerably reduce the operating expense of your automobile.

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How I Became A Professional Day Trader

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Like many people out there with dreams of hitting it big time in the Forex market, I initially started trading by signing-up to a Forex trading course but with the intentions of retiring not to long after opening my first micro account. Looking back at my journey, it all seems laughable how I genuinely believed I could become a superstar trader with very little experience and beat the professionals who have been in the business for a number of years. However on a serious note, something which I can’t laugh about is the fact that many people still hold on these false beliefs and expectations of retiring early through trading. To clarify this point, it is possible supplement your current income and rely on trading for your sole source of income and potentially even retire. However, it is only after taking all the appropriate steps in terms of learning the relevant skills to acquire the competence and confidence to trade that you will reach your trading goals.

After making a plethora of mistakes throughout my Forex training, I hope to dispel some trading myths and also help new traders avoid the same mistakes I made. One thing which changed my approach to trading as well as my trading results was simplicity. Instead of trying to master every indicator, time-frame and new strategy I discovered from a forum, I focused on choosing a simple approach that enabled me to master a specific set up on one market. With time and experience I discovered that I gained a lot of confidence as my competence and results improved. I put my improved performance down to spending plenty of time mastering this specific set up. That is, by getting as much time chart time as possible I was able to gain an insight and an understanding of how this set up works. Once my first set up was fully internalized, I started back testing and paper trading a new trading strategy (but not before I made sure that I completely owned my first strategy).

To conclude, although this article isn’t meant to be an exhaustive list of steps to take to reach consistent profitability, I hope you have realized that the strategy you use is not as important as your patience, mental attitude (psychology), money and risk management and support you have for trading. The trading methodology you decide to use is only important to the extent that it has a positive expectancy; everything else is more to do with you as a person and how you approach your trading from a mental point of view.

A Forex trading course is the best way to start you career as a Forex trader. Make sure that you continuously exercise patience throughout your Forex training and you should be well on your way to becoming a successful trader.

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Currencies to Watch Over the Next Few Months

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Whether your interest lies in playing the Forex market, or you’re simply planning an overseas trip for the coming year, it’s worth your while to spend some time learning what global currency exchange is doing during these tumultuous times. The upheaval caused by the dramatic and sudden decline of the American economic situation had major ramifications which have echoed across the world, and most of us are feeling the impact.

If you’re planning an overseas trip and you’re negotiable on your destination, then you’re most likely constantly checking the various exchange rates, in the hope of selecting the most stable and best possible deal, but it’s been a trial to maintain a track of and more so to identify any discernible pattern. If you’re playing the Forex market, then you need even more assurance on the stability of your approach and investments, but this is difficult to come by.

Below I’ve listed some of the most popular opinions and estimations which are shared on the web, but please bear in mind that these are only the opinions of market players and government officials, certainty is never a possibility.

Asia:

The Asian market has been suffering along with other key players, and over the next few months, it’s predicted that the various currencies of the region will continue to devalue. On the upside, however, respected analysts have stated that they expect the region to begin a recovery early next year, leading to a strengthening of currencies. This upturn is attributed largely to an anticipated increase in import demands.

 

China:

As a major global player they, perhaps, deserve an entry independent of the Asian one. China’s overseas sales climbed 17.1 percent in September 2011, likely due to the low cost of their exports at a time when everyone is struggling to survive. The country currently has 3.2 trillion dollars held in reserve, and has shown impressive resiliency since the 2008 depression hit. The smart money is most likely on the Chinese, in terms of a good investment.

Australia:

The Australian dollar has always been a strong contender and a very stable forex trade commodity, but certainly took a hit of its own in recent times. Growth may have been slowed by the 2008 depression, but the Australian dollar fared better than most due to its strong export policy, consisting in large part, of raw materials which are always required by the global market. It seems that Australia is the master of another of the few currencies which have remained relatively stable and could see healthy growth in the coming year.

US and Europe

Needless to say, North America and the majority of Europe (especially England and Ireland) were savagely injured due to their investments in the USA. When the credit system of the US collapsed, the impact was widespread indeed and Ireland, for one, has suffered a chain reaction, the repercussions of which are still not fully clear. Although both the US dollar and the Euro have seemingly stabilized, this has been an opportunity for emerging currencies to gain trade-able strength.

Warren Kings writes on many different topics. Have a look at his latest articles on mt4 demo account and metatrader 4.

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Reasons to Use a Demo Account

When it comes to trading Forex it is important that you have significant experience and practice, which can best be attained through using a demo account. Using one of these accounts gives new traders the opportunity to practice their trading skills and strategies without using – and risking – actual money. Using demo accounts to practice trading Forex means that you can see which strategies work and which don’t so that when comes to trading on the actual Forex markets you can do so with an effective strategy in mind.

 

By starting off your trading career by practicing on s meta-trader demo account will give you a good understanding of how this platform works. The metatrader 4 demo account has a number of features and tools that traders can use to sharpen their skills, as well as get accustomed to using the platform before accessing it live. One particularly good feature of the metatrader 4 download is that it does not expire and other than the credit balance there are no limits so you can keep practicing your strategies until you are completely satisfied with them.

With the Forex demo account there is virtually no difference to trading to real money. As with a real account you will be expected to comply with the rules and regulations of trading Forex, and you have full access to customer support as you would if you were using a live account. You can also use the live chat or email support for answers and assistance related to your online trading.

Upon opening your metatrader 4 demo account it will be issued with $100 000 of virtual money that can be used when making bids and executing trades. However, should your bids and trades be successful you will not be able to draw this money from the accounts as it is only a demo account and this currency is virtual and for practicing with only.

When using a demo trading account you will learn how to manage risk properly. This means that if you make bids that do not go as expected then you will have the practice and knowledge to get out of the situation. Using a demo account is a great way to learn about the risk that trading poses and to learn how to judge and predict currency and market fluctuations.

Keep in mind that it isn’t just novices who take advantage of free forex demo accounts – experienced traders use them to test new strategies as well. Ensure that you are very familiar with the trading platform by using a demo account to hone your skills.

Dave Tucker is a financial adviser who has a keen interest in Forex trading.

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