Perhaps you've heard or read his own testimony some traders who become victims of misuse of funds by the fraudsters forex broker. Which is often the question is why companies like it can continue to operate on the internet? This occurs because the Internet is a free world, and will remain there as long as the website server hosting and domain fees paid. Some traders who had stuck with forex brokers such as lack of education and knowledge about forex investment.
Forex Broker Company danger Yang unregulated
- The brokerage company that is not regulated much is headquartered in countries remote offshore and free. This means that there are no legal provisions concerning crimes strict financial investments imposed. Of course scam brokerage firm will not receive any sanction in these countries. Conversely, if the company is a regulated forex broker, then all business activities must have been under the supervision of a competent authority. That means if there is action that violates the rules regulators, concerned the forex broker can incur severe penalties.
- Before deciding to open a real account at a forex broker, examine license owned by the company. Distinguish between the regulation permits the establishment of a business entity, association or community. Do not be fooled by the business license as the regulation but is actually not. This kind of illegal brokerage firm many prowl, especially in countries where people still lay on forex investment and not getting enough education.
- Unregulated financial companies would be very risky because every performance is not under the supervision of authorities. As an investor or trader, the risk that occurs is a misuse of funds or manipulation on your trading platform. Forex brokers who have been found guilty of misappropriation of funds to the client for example is Prime4x and 4xp, and others. Firms are broker forex forex bucket shop that does not have regulatory and license brokerage firm of authorized body.
- The company is legal and regulated forex will prioritize safety and quality of care rather than just giving your trading lure the form of bonuses or gifts that seem tempting. In order to avoid such pitfalls brokers, the following are some of the characteristics of scam forex broker can be your reference to be careful in choosing a forex broker as your trading partner.
- Forex Broker characteristics Fraudsters
- Difficult to contact; if the response given above you complain long or not addressed at all, it could be that the forex broker is problematic. Brokers are difficult to contact would be difficult for traders to get decent service. Brokerage firms that use weak server for the site would be able to conclude that the broker does not prioritize the interests and gain clients.
- The difference between the deposit and the service of withdrawal of investment / withdrawal; Forex brokers scam often complicate the withdrawal of profit customers or clients can not even withdraw altogether. There are various reasons given so that the client can not draw benefits. Conversely, if there are clients who wish to deposit then the process quickly and smoothly.
- Bad sites; You can judge the credibility and quality of a company broker of quality website. Site scam broker or fraudsters often very insecure, which is often the case of misuse of funds belonging to clients by irresponsible parties. A website should have an accurate detection system to track changes to an identity.
- Allowing the transfer to a third party engineering and price; engineering is the meaning prices are setting the value of the deposit is not compliant with enlarged nominal value. The purpose of this manipulation is to increase the value of the company's liquidity in the financial statements. As a trader or prospective trader, you have to be very careful with this kind of type of broker. In addition to price manipulation, forex brokers are often problematic to allow the transfer of funds to third parties. Though this procedure could be linked to money laundering or provide an opportunity for hackers to manipulate client funds.
- Fictitious office address; The simplest thing you can look at whether a forex broker is problematic or not to pay attention to his office address. Illegal brokers often headquartered in remote countries or with the names you've never heard of. The addresses in the country are often used as the address brokerage firm or investment fraudsters bulging.
- Website not top address domain (.com); be careful with the forex broker sites that do not use the .com top, because the company is not using a top forex domain almost certain that the forex broker illegal or problematic. Forex brokerage firms and competent professionals certainly use .com as the top parent company. If you want to choose a Forex Broker Local Indonesian official, make sure the company is using a top domain Indonesia .co.id atapun remains .com.
- Do not have a license as a brokerage company; in general, the online forex broker that holds the regulation of the financial supervisory agency that is authorized to be put on the website of its regulatory agency. Thus prospective clients will be able to find out about such brokers and credibility. In addition to having the regulation of a leading supervisory institution can also be a promotional tool to attract clients for the forex broker security has been assured.
- Requote; one of the modus operandi often used by forex brokers scam to screw up your trading is by requotes or changes in the value of open. If the current trading platform requotes we often experience when trying to execute orders even though market conditions are calm, then you should start to be vigilant with your forex broker.
- Freeze; systems that often hangs or freezes, especially when you want to win the transaction can also be one sign that your broker problematic. But the conditions that led to the cessation of movement chart in the application can not be the only yardstick. Such system disorders are also often the case when the order is lots going on at the same time.
- Trade restrictions; If you restrict the use of forex broker trading techniques that you can do, you should be wary because it could be the reason is that you do not very often get a profit. Which enforces the ban brokers usually is the city which must pay your profit from the company's cash because they are market makers so that trading is done between customers themselves.
One important factor that can support your trading success is to choose a forex broker is a professional and reliable. If losses occur is purely because the trader has not skilled in trading activities, of course it is a natural thing. But if the investor trading defeat because the system is manipulated in order to obtain benefits for the company, of course it would be very detrimental.
For the novice trader who's just starting out in forex investments are strongly advised to investigate the forex broker you target as precisely as possible before opening a real account. This is the most effective way to avoid the forex broker fraudsters who can carry off your money. Happy trading!