10 signs of scam brokers

One of the main problems of the financial market is considered to be the abundance of scammers who want to make money on traders who have made promises of “golden mountains”. In order not to fall for the bait of such scammers, traders need to responsibly approach the issue of choosing a brokerage company. First of all, you need to pay attention to the signs of fraudulent organizations. The following circumstances indicate that the fraudulent broker is in front of you:

  • Unrealistic promises. The activities of fraudsters are primarily aimed at newcomers, whom they can “mess with” the brains with unrealistic promises of huge profits, minimal risks, constant income, etc.
  • Active attraction of newcomers. This term refers to “cold” calls aimed at attracting people who have never traded before.
  • Organization of exclusive courses only for clients of the brokerage company. There is no magic strategy in trading that will “guarantee high and stable income”. Such promises are idle talk, calculated on the fact that most novice traders go to the financial market just for the sake of quick money. But it should be understood that trading is a difficult daily job. Returning to the courses, it is worth noting that the materials used at these events can be found freely available on the Internet.
  • Lack of data on liquidity providers.
  • Stimulating haste. For any scammer (not only in the financial market), haste is stimulated. This is not surprising, because in this way the swindler does not allow the “victim” to come to his senses and not do rash actions.
  • Deposit of funds using not the most popular methods. For example, some scammers provide the ability to fund an account only with cryptocurrency. Thanks to this, they can maintain their confidentiality, and then the trader will not find the “ends”.
  • Little-known trading platform. Scammers usually offer to trade on unknown platforms. Therefore, it is advisable to trust only those brokers that provide access to Metatraider 4 or 5 terminals.
  • The use of big names. Scammers always disguise their names as popular brands: Alfa Trading, VTB Forex, etc.
  • Lack of a website or a hastily whipped up resource. If the company does not have an official portal (or it is a nondescript one-page site), a trader should never cooperate with such a broker. Before you give your money to a broker, you need to make sure you have a license, legal address, reviews, etc. All this should be on the official website of the brokerage company.
  • Emphasis on the profitability of successful traders. In such a situation, a potential client needs to at least “google” the names of successful “managers”. In most cases, you will see a huge amount of negative reviews already on the first page of the search.

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