ad

ad

Beware of Aggressive Marketing Strategies While Choosing a Forex Broker

With a daily trading volume of $5.1 trillion, the forex market attracts many new investors every day.

With a daily trading volume of $5.1 trillion, the forex market attracts many new investors every day. There are a lot of brokers offering service for a long time. Nowadays many new brokers are coming, some of them just trying to scam. After depositing they closed account and didn’t response.

However, like any other business involving money, forex is not free from scams, and that too is enormous. Forex brokers basically commit these scams. Although the forex market is riding high on its swiftly achieved success, it has also become very complex, increasing the chances of traders coming across fraud FX brokers.

How Forex Brokers Cheat Traders

Aggressive marketing is the major tool used by online forex brokers to lure investors into scams or frauds. They promote lucrative moneymaking schemes and promotional offers on the Internet, television, and newspaper. Usually novice, but sometimes even experienced, traders fall prey to such schemes and end up burning a hole in their pockets.

Many forex brokers claim to offer investors currency trading strategies sans any financial risks. This is obviously a fraud, as no financial transaction can be free of any risk. Where there is a money game, there is a risk. Traders should steer clear of such forex brokers.

Forex brokers are regulated by authorities such as the National Futures Association or the United States Commodity Futures Trading Commission. While searching for an online forex broker, you may even come across those who falsely claim to be registered with the NFA or the CFTC. This makes it important for investors to confirm with the regulatory authority whether the broker is actually listed with it or not and what is the track record. Equally important is to attentively go through the various contract terms and conditions proposed to you.

Many times, forex brokers cheat investors by offering a guarantee of large returns on investment. These are traps set to attract potential traders who start believing that they will get back invested money along with profits. However, considering the high volatility in the forex market, it is almost impossible to guarantee profits to traders. Traders should keep their eyes open for schemes that sound too good to believe.

Comments (0)

Write a Comment

Forex Featured Brokers

FBS

100% Welcome Bonus
Cash-back $15 per lot
Broker Type : STP/ECN
Leverage up to 1:3000

Start Trading View Profile »
Capitalxtend

$300 Deposit Bonus
Leverage - up to 1:1000
Minimum Deposit: $100
Broker Type: STP/ECN

Start Trading View Profile »
HotForex

100% Free Credit Bonus
Minimum Deposit $5
Leverage up to 1:1000
Broker: STP/ECN/NDD

Start Trading View Profile »
FreshForex

$300 No Deposit Bonus
300% Forex Deposit Bonus
Leverage up to 1:2000
Minimum Deposit $10

Start Trading View Profile »
Axiory

Up to 50% Deposit Bonus
Minimum Deposit $50
Leverage up to 1:777
Broker Type: NDD

Start Trading View Profile »
ATFX

Up to 50% Deposit Bonus
Leverage up to 1:400
Minimum Deposit $100
Broker Type: NDD

Start Trading View Profile »