Home Forex Brokers Five Signs that Your Broker is a Scammer

Five Signs that Your Broker is a Scammer

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30Are you here because you’re having doubts about your forex broker? The truth is that while there are a ton of legitimate companies out there, scammers are often mixed in with those offers. Many of these scammers are good at blending in and they might present you with a polished website that managed to pass your initial inspection, or you could have hastily chosen a broker in the beginning only to run into issues later on. Something must have caused you to click on this article, so read on to find the 5 key signs of a scamming broker.

Sign #1: A Vague Website

Before signing up for a brokerage account, you should be able to gather most of the details about their accounts and fees by simply checking out their website. If you can’t figure out how much it costs to open an account, what leverage is offered, what kinds of funding methods are available, how much spreads and commissions cost, and so on, then you should probably skip that broker. Of course, you could always try to reach out to an agent to ask for answers, but you’ll want to move on if you get vague answers or if customer support doesn’t respond to you within about 24 hours. 

Sign #2: Problems Withdrawing Funds

Most brokers do verify your identity when you open an account and might ask for a photo of the front and back of your credit card (with all but the last four digits of the card number blacked out) if you plan on funding that way. There are usually other requirements, like the need to withdraw through the same method that was used to fund the account. However, some scammers will do everything they can to block your withdrawals, from imposing crazy rules to offering dodgy customer service when you try to figure out why you can’t receive your money. Payment agents at reputable brokers are always willing to provide detailed solutions and explanations to help you understand what’s wrong if you haven’t received your money. 

Sign #3: Customer Service Isn’t Dependable

Each broker will offer different options for contacting their customer service representatives, along with different work hours. The best brokers offer fast contact options like LiveChat, which allows you to instantly connect with an agent, in addition to more traditional methods like phone and email. Some scammers will only get in touch with you through email, or they might falsely advertise an instant contact option when in reality agents are never available to chat. One of the biggest signs of a scammer is a customer service team that is unreachable. If you send an email and haven’t heard back after a few days, or if you never get a response to an inquiry about a missing withdrawal or another important issue, you probably need to look for a more reachable broker to work with. 

Sign #4: Bad Reviews Online

One of the best ways to find out if a company is reliable is by checking for reviews online. Of course, you’ll want to check out several different websites in case any of them are biased. There are also some things to keep in mind when looking at broker reviews. If you can’t find any feedback online, you know that the company isn’t very popular so you’ll need to be cautious. If reviews are mostly bad, you should think twice before opening an account. However, a bad review here and there is normal because some clients might blame the broker for their own losses, so try to look at several different reviews to get the best idea of what kind of service is offered.

Sign #5: Things Seem too Good to Be True

We’ve mentioned that a vague website is a sign that a broker is not forthcoming with information, but you also have to watch out for one that seems to good to be true. For example, a broker cannot “guarantee” that you will make x amount of money by trading with them. They can’t promise to make you rich or change your life because there is no way for them to know that you will make any money. However, some scammers fill their websites with flashy promises and guarantees that you’ll make money, which usually covers up the fact that they aren’t offering any details. 

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