You’ll find a number of brokers who make many promises as you enter the forex world. Some brokers are able to deliver on their promises, while others only make empty ones. You should therefore work with an honest forex broker website. How?
It is important to read and do some research. For example, in the United States forex brokers must be registered as Futures Commission Merchants. Forex brokers who are not scams should be also registered at the Futures Trading Commission. Your protection is assured if you work with a registered forex broker.
Forex brokers who are not scams will be upfront with their clients about your financial situation. Brokers will be able to accurately estimate the market and keep you informed. The broker will give you advice based on your specific needs.
Leverage is another factor to consider when choosing a forex broker that’s free of scams. You may not want to use high leverage if you are new to the forex market. Although the thought of turning your $1,000 into $100,000 might seem appealing, you may end up losing your entire savings. If a broker is trying to convince you to invest with a 1:100 leverage, it’s best to look elsewhere.
You may also want to avoid trading with high spreads. In forex, the spread is the difference between the price of buying and selling. You will have a harder time breaking even if the spread is large. You shouldn’t be forced to use a large spread by a good forex broker.
Forex brokers who are not scams provide their clients with extensive research and expert advice. You will have access to trading tools and training so you can get used to making trades. A scam-free broker will be there to answer your questions at any time, just as the foreign exchange market is available 24/7.