1. A good broker will quickly respond to any questions or queries. If you’re being ignored of fobbed off, it’s a red flag.
2. Research each broker online, and take the time to read through their trading and account management terms and conditions.
3. Don’t commit a lot of money for the first month. See how the fees and commissions work and make a test withdrawal.
4. A minority of dishonest brokers may try churning. Be cautious if you see buy and sell trades for assets that don’t fit your strategies.
5. If you think that your broker is dishonest, check their terms and conditions, and get professional advice before you proceed.
1. Big brokers are not always safe partners, as size and liquidity don’t guarantee low risks. The 2008 financial crisis showed us that popular financial service providers aren’t always secure – however high their service standards.
2. Some scammers do have top quality sites, but If a website looks amatuerish, it may well be fraudulent. If you see poor quality text and graphics, confusing content, or sloppy design, be very cautious.
3. Don’t assume that a broker is reliable just because they operate a major sponsorship deal with a sports team or are associated with a celebrity. All is means is that the broker has paid to benefit from somebody else’s image or reputation.