The Forex market is the largest financial market in the world. A staggering $5 trillion is traded every single day. That’s ‘Trillion’, with a T!
Thanks to the emergence of online brokers, it is now easier than ever for potential traders to speculate on the performance of a country's currency.
Traditionally throughout history, trading was only seen to be accessible for the elite and wealthy social classes.
Now thanks to leveraged trading coupled with accessibility to platforms through the internet, more users than ever are trying their hand at trading assets online.
In such a saturated market, traders have the luxury of choice to trade on a range of currencies from well-known currencies such as the Great British Pound, Euro and US dollar to more exotic currencies such as the Russian Ruble and the Mexican Peso.
When there is so much choice available online, it is inevitable that online threats or malicious web users will look for ways to make a monetary gain through ill will.
The Forex market has been around for many years and as long as the online platforms continue to run, so will malicious, online threats.
Scammers are everywhere online so as consumers we need to take some preventative measures to ensure we do not fall foul.
In a crowded marketplace, it can be difficult to choose a broker we are happy with and more importantly, one that is genuine.
The aim of looking for a broker should be to find one that one is genuine and will take care of you as a customer!
This article will explore how you can better identify when a broker is genuine and what measures you can take as a precaution.
So what precautionary measures can we take?
There are a few things you can do to protect yourself and give yourself assurances before depositing.
- Look for brokers on accredited websites that are in the ‘Safe Broker’ sections.
- Find out what sort of relationship you will have with the broker or how much contact you can be exposed to if needed. Have a conversation or open a dialogue with the broker to test transparency.
- Do some research online into other users’ past experiences. There could be news releases detailing any wrongdoing, sanctions or ongoing litigation.
- Before choosing a broker, shop around before you decide to commit and deposit to one.
- Visit the site: Many Forex sites have reviews of brokers on their pages. Read the reviews from other readers. Look for affiliate links as well. If you see links from review sites and they lead directly to the broker site, this is a good indication that the site is up front about affiliation.
- Read the small print!
- If you have already signed up to a broker site ensure you check statements regularly as in lots traded, deposits in and out - as well as account balances. If there are discrepancies then address this with your broker.
Test the broker!
If you are really sold on a broker's product features yet you are feeling skeptical about the legitimacy of the broker, then submit a small deposit.
You can test the platform with a small trade with low lot sizes and then request a withdrawal. There is no real reason why a broker should hold onto your funds.
When withdrawals are at a snail's pace and you have to follow up with the broker to release funds, this is usually a telltale sign that the broker is not transparent with its clients.
Does the broker deliver on its promises?
Take a look at the site’s FAQ’s and information pages and see if they have any SLA’s such as offering withdrawals within 48 hours.
You can then test this SLA by looking to deposit small and then withdraw. Test how easy the process is it to get Liquidity in and out of a broker.
If the broker stays in line with its SLA’s then you can rest easy that the broker is committed to keeping promises to its clients.
This will help you feel assured and be more trusting depositing larger amounts, knowing that your broker will give you back what is rightly yours.
STP broker EagleFX processes withdrawals on the same day as submission, guaranteeing its users fast access to their funds by using Bitcoin as a primary deposit and withdrawal method.
Once a withdrawal is approved, you will receive the funds within an hour.
Is there a customer support team available for me when I need it the most?
Take a look at the site and see the range of customer service features a site has. Do they offer 24/7 support to assist you whenever you may need it?
Being always available for their clients shows you that a broker is committed to their clients and will do all they can to make themselves available to their clients.
If a broker has multiple ways for consumers to get in touch then this can be considered a plus. But be sure to test out this theory.
It is often the case that brokers have a LiveChat feature within their site. Before depositing into the broker, test them.
Talk to an agent and ask them some questions surrounding their withdrawal speeds and how easily you can get funds back.
Are you talking to a robot or a real person? You will quickly be able to tell.
Potential traders can also get a feel of how punctual, knowledgeable and caring a site's support team is - based on their client relations.
It may be that a platform has a call back feature which you can test as well. Brokers show great flexibility with this feature as you can pencil in a conversation when it suits you.
EagleFX offers an Affiliate program where you can further increase your earning potential by referring friends or your online following to the site.
As a Master Affiliate, you can earn up to $5 per traded lot by your referees.
Not only that, you will have direct access to an affiliate executive to help guide you to success with your campaign.
To summarize...
Before choosing a broker, shop around before you decide to commit and deposit into one. Conducting your own due diligence is key.
Be super cautious regarding withdrawals. When a broker holds on to funds, it begs the question as to why?
Does this mean that client funds are stored in the same pot as broker funds?
This can get messy and discredit the legitimacy and intentions of a broker. Does this mean a broker would release certain withdrawals and not others based on the broker's bottom line at that particular time?
When looking for the right broker for you, test them. The product features listed might appeal to you greatly, however, the proof is in the pudding.
Contact the broker and speak to someone via LiveChat to test the waters. Take some precautions such as reading the fine print and service level agreements the broker has with their clients and then test them for yourself.
Better still, cross-reference the SLA’s with a broker representative to look for consistencies or inconsistencies with their responses.
What is key, is to know the broker will be there for YOU when you need them.
Trade with confidence at EagleFX knowing that client funds are safeguarded using multiple security measures and client funds are completely separate.
The broker offers clients rapid access to funds, promising same-day withdrawals and has a 24/7 professional customer support team.
Disclaimer: The content of this article is sponsored and does not represent the opinions of Finance Magnates.
