⭐ Choose BEST SAFEST Forex Broker & Avoid RED FLAGS
Obstacle course:huge deal, avoid entirely
serious deal, avoid
warning sign, proceed with caution
bad business practice, keep in mind
LEGAL DOCUMENTS & REGISTRATION
No Client Agreement
No Client Agreement on the website, and no Client Agreement at any stage of account opening (before, during or after).
It won't be wise to begin with account registration without knowing what conditions you're signing up to
The Broker is not regulated
Non-regulated Forex brokers are able to offer more attractive trading conditions, due to no regulatory oversight. And since Forex Market has no centralized regulation as well, by entrusting their funds to non-regulated Forex brokers traders have zero protection against any business misconduct by such brokers
Registered but not regulated
The broker is legally registered, but not regulated (either due to absence of Forex regulation in its jurisdiction, or by own choice). Offshore companies are known to fall under this category
Inadequate Client Agreement
An "oversimplified" inadequate Client Agreement, missing key details about execution policies, client funds management, conflict of interest etc, and without references to other legal documents... puts under question broker's transparency
Registration/ regulation undisclosed
Broker's website does not contain any details (or documents) about company registration and/or regulation. Every legitimate business is registered at its domestic jurisdiction. For a Forex broker in particular, omitting details about registration & regulation entirely is a bad practice
Insufficient contact information
No meaningful contacts provided:
- no physical address
- no phone
- no email
- no live chat (optional)
Warning sign: only one contact option is insufficient for a business that handles clients' funds
No one replies to client support requests for over 3 business days.
Do they want your business?
Client support seems completely incompetent about the topics/questions you ask.
Are they professional?
Client support ignores your questions, won't answer directly or provides unrelated answers.
Are they hiding details?
Client support pushes for account opening & collecting your personal details from the very start.
Are they unable to earn your business without aggressive strategies?
BROKER REPUTATION & REVIEWS
Zero reviews about Broker
There are no reviews about the Broker anywhere on the web - serious deal.
There could be 3 main reasons:
- The broker is very new - exercise caution
- The broker gets zero attention from traders & fewer clients - exercise caution
- The broker forces webmasters to remove reviews - exercise extra caution
All 5 star reviews
Warning sign: there are some reviews, but all of them are 5 star reviews (likely not from real traders, rather affiliate reviews)
A lot of negative feedback
There is an overwhelming amount of negative feedback about the Broker on several (!) resources.
If all facts point to "-", you have to be a huge optimist to see "+"
Broker labeled as fraud
Several (!) websites labeled the company as "fraud" - huge deal.
Note: if only one website placed on a "fraud" label, do further research, but exercise caution nonetheless
Broker won't respond to reviews
The broker does not respond to reviews in attempt to clarify traders' claims (especially negative ones) - missed opportunity for a broker to promote own image & build traders' confidence.
Note: don't expect your broker reply to reviews on every website, pay most attention to largest websites.
Unclear Dealing Model
The broker hides details and/or misleads traders about its true dealing model (warning sign and bad business practice)
The broker hides details about its liquidity providers (warning sign and bad business practice)
Vague Trading Conditions
The broker does not have clear description of all trading conditions, does not have a quality FAQ, and won't provide missing details upon request (warning sign and bad business practice)
The broker explicitly promotes huge earnings & wealth coming from Forex trading
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