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How to Avoid Forex Scams

Forex trading has been increasingly popular in recent years. The pandemic has stimulated the growth of this colossal industry, which connects individuals to a market with a turnover of $6.6 trillion.

Successful traders are their own bosses, and they can work wherever they want. Choosing the right broker is the primary condition for success, as only some companies may be trusted.

Scammers are exploiting the popularity of remote money-making tools. Don’t trust the hype and look beyond exaggerated claims. Here are the key features of companies that work legally and protect their clients’ rights.

1. Free Demo

Trusted brokers give beginners a chance to practice and learn for free. For example, the Olymp Trade demo comes with a virtual deposit of $10,000, so you can practice at your own pace as long as necessary.

Decent providers highlight the risks of trading and encourage clients to gain experience before entering the real market.

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2. License

Forex brokerages must comply with the regulations of their jurisdictions and the countries where they render services.

Licensing is a must, and honest firms give full details of their legal status — usually, in the “About Us” section and the footer of their official website.

Prominent licensing organizations include watchdogs like the FCA in the United Kingdom and CySEC in Cyprus.

3. Rich Experience

Some Forex brokers have been in the industry for over a decade. They have an impressive collection of awards and serve millions of clients in different countries.

Forex review websites post detailed analyses of popular providers, so you can compare different sources.

4. Stellar Reputation

Even the best companies get negative feedback from time to time. Visit Forex communities and forums to see what the real users are saying.

Feedback is not always objective, but you can easily spot recurring problems. For instance, if multiple users are complaining about delays with withdrawals, you know that something is wrong.

5. Excellent Support and Guidance

Top brokers are also educators. They provide a wealth of content, from articles to webinars, to help their clients navigate the markets. Some companies have their own YouTube channels.

Check the quality of customer support before creating an account. Reliable operators let users reach them through different communication methods. At the very least, you should be able to contact the team by phone and email.

The Forex market is open 24 hours a day five full days a week. Ideally, the customer support hours must be the same.

To Sum Up

Steer clear of brokers that do not offer demo accounts and fail to make their licensing details public. Pay attention to the track record, reputation, and quality of support. Choosing a broker is your first step towards success, so take it seriously.

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