Although it has become incredibly easy to trade stocks and bonds online without any assistance, many people still use brokers. These experts know everything about micro and macroeconomic factors and can help you pick a strategy that you would never think of.
Unfortunately, finding the right person for a job is usually hard. Investors have to check all sorts of official data and run background checks to make sure that the person is legally eligible to perform this role. In this article, we’ll share 5 quick tricks that will assist you in establishing whether your Forex broker is a real deal.
1. Check the Official Info
Every legitimate broker has to follow certain market rules and is registered by various regional and international bodies. For example, when talking about the US brokers, they need to be registered by the CFTC, FINRA, NFA, SICP, or one of the other top organizations.
Before hiring a person, ask them about their paperwork. After that, contact the agency and ask them if they have the broker in their database. Another good way to check if the person has the necessary documents is by checking their registration ID (usually disclosed on their official site).
2. Consider Website Design
Reputable brokers would never have a poorly designed, shady-looking website. In addition to visual appearance, their platform should disclose the experts’ personal information, including their educational and professional background, paperwork, and professional IDs.
Make sure that the site is registered with a local or international agency. Keep in mind there are many websites that try to mimic real brokers in an attempt to lure your money and embezzle it.
3. Assess Guarantees
One of the biggest red flags in financial business is a promise of high returns. Given the sensitive nature of financial transactions, especially Forex trading, a broker should be honest about their goals and potential returns. They should use the past track record as a benchmark for future profits.
4. Assess Responsiveness
Good brokers rarely work alone; they have large teams of at least a dozen employees that help them tackle the daily workload. So, if nobody’s answering the phone or responding to emails, this can be a warning sign. Scammers don’t want to build customer service teams, as many of them often change addresses and websites.
5. Read Client Reviews
As in any other business, you can learn a lot by simply going through user reviews. Google feedback provides lots of valuable information about a company’s work and whether it’s legitimate. More importantly, these reviews can point out any irregularities that would also affect your rapport.
You can also check third-party websites for additional information. For example, you can read a review on RoboForex, Saxo, or IG from one of the top Forex company aggregates.
Final Tricks and Tips
You should take your time when choosing a broker. The last thing you need is to put your life savings in the hands of a person who can’t be trusted. Furthermore, these background checks will affect your profits, given that top-tier companies generally yield much better results.
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