How to Know if a Forex Broker is Legit
When it comes to trusting your money with someone, you want to be sure that the person you’re dealing with is legitimate. The same is with the brokerage companies. Unfortunately, there are a lot of scams out there when it comes to forex trading and it can be difficult to find a legit broker.
That’s why we will go over some tips on how to know if a broker you trade with is legit.
- Do research before choosing
The first step in researching a financial professional is to do a simple web search with the brokers for beginners and firm names. This might bring up news releases or media reports of alleged wrongdoing or disciplinary actions, client conversations on online forums, background information, and other details. You can also check federal and state securities regulators’ websites for registration information and disciplinary records.
Check out indices trading brokers to have an example of reliable and legit brokers.
- Check the Broker’s Regulatory Info
To find out more about a financial professional or firm, you can search their registration information with federal and state securities regulators. This information includes details of disciplinary actions taken against the individuals or firms.
- Be Cautious of Cold Contacts
Be cautious of any brokerage company that contacts you uninvited from a company with which you’ve never done business. The contact could get the form of a phone call as well as letters and emails. Don’t get taken in by invitations to investment seminars that promise free lunches or other gifts aimed at getting you to lower your guard and invest blindly.
Check out the Equiti review as a clear example of a trustful and regulated broker.
- Verify SIPC Membership
When investing, always make checks out to the Securities Investor Protection Corporation member firm and not to an individual broker in order to be protected if a brokerage firm goes out of business.
- When in Doubt, Withdraw Funds and Complain
If you have any suspicions of wrongdoing, remove your funds from the investment advisor and file complaints with state, federal, and private regulators. If you have a dispute with your broker or advisor, there are steps you can take to resolve it.
If you’re having trouble getting your money back from a broker or advisor there are several steps you can take. First, contact your state or provincial securities commission for help. Each division that handles complaints against these professionals has its own process and may be able to get your money back for you. If this doesn’t work, hiring an attorney is the next step.
- Read the Reviews
When looking for a quality forex broker, it is important to look at customer reviews from respected sources. Beware of fake or biased reviews on brokers’ websites, and instead, look for honest feedback on forums and other independent sites. This will help you avoid scams and find a reputable company that will meet your needs.
Conclusion
Choosing a broker is a responsible decision – there are many frauds and scams out there. By doing your research ahead of time, you can ensure that you find a legitimate