Forex Brokers
1. Introducing Broker - our recommendations
2. General Information - how to choose a broker
In order to trade better, we would advice you to look for a good and suitable forex broker/trading platform. Here we give you
some useful advises when looking for such, and you can find information on forex brokers/trading platforms with complete
details using the link/search engine bellow.
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Get-rich-quick schemes, including those involving foreign currency trading, tend to be frauds. Always remember that there is no such thing as a "free lunch". Be especially cautious if you have acquired a large sum of cash recently and are looking for a safe investment vehicle. In particular, retirees with access to their retirement funds may be attractive targets for fraudulent operators. Getting your money back once it is gone can be difficult or impossible.
Be extremely wary of companies that guarantee profits, or that tout extremely high performance. In many cases, those claims are false. The following are examples of statements that either are or most likely are fraudulent:
"Whether the market moves up or down, in the currency market you will make a profit."
"Make $1000 per week, every week".
"We are out-performing 90% of domestic investments".
"The main advantage of the forex markets is that there is no bear market".
"We guarantee you will make at least a 30-40% rate of return within two months".
Be suspicious of companies that downplay risks or state that written risk disclosure statements are routine formalities imposed by the government. The forex market are volatile and contain substantial risks for unsophisticated customers. The forex markets are not the place to put any funds that you cannot afford to lose. For example, retirement funds should not be used for currency trading. You can lose most or all of those funds very quickly trading foreign currency contracts. Therefore, beware of companies that make the following types of statements:
"With a $10,000 deposit, the maximum you can lose is $200 to $250 per day".
"We promise to recover any losses you have".
"Your investment is secure".
Margin trading can make you responsible for losses that greatly exceed the dollar amount you deposited. Many currency traders ask customers to give them money, which they sometimes refer to as "margin," often sums in the range of $500 to $5,000. However, those amounts, which are relatively small in the currency markets, actually control far larger dollar amounts of trading, a fact that often is poorly explained to customers. Don't trade on margin unless you fully understand what you are doing and are prepared to accept losses that exceed the margin amounts you paid.
Be wary of firms that claim that you can or should trade in the "interbank market," or that they will do so on your behalf. Unregulated, fraudulent currency trading firms often tell retail customers that their funds are traded in the "interbank market," where good prices can be obtained. Firms that trade currencies in the interbank market, however, are most likely to be banks, investment banks and large corporations, since the term "interbank market" refers simply to a loose network of currency transactions negotiated between financial institutions and other large companies.
Many companies offering currency trading on-line are not located within the United States or Europe and may not display an address or any other information identifying their nationality on their Web site. Be aware that if you transfer your money to those foreign firms, it may be very difficult or impossible to recover your deposit.
Some currency trading scams target potential customers in ethnic communities, particularly persons in the Russian, Chinese and Indian immigrant communities, through advertisements in ethnic newspapers and television "infomercials." Sometimes those advertisements offer so-called "job opportunities" for "account executives" to trade foreign currencies. Be aware that "account executives" that are hired might be expected to use their own money for currency trading, as well as to recruit their family and friends to do likewise. What appears to be a promising job opportunity often is another way many of these companies lure customers into parting with their cash.
Plan to do a lot of checking of any information you receive to be sure that the company is and does exactly what it says. Get the background of the persons running or promoting the company, if possible. Do not rely solely on oral statements or promises from the firm's employees. Ask for all information in written form. If you cannot satisfy yourself that the persons with whom you are dealing are completely legitimate and above-board, the wisest course of action is to avoid trading foreign currencies through those companies.