Stocks Wide say: how not to become a victim of swindlers in the Forex market.Barry Copeland 28 / October / 22 Visitors: 16
Wherever there is any money, there are those who want to embezzle it dishonestly. This is why fraudsters can be found in petty trade, in the construction business, and in financial services. We turned to Stocks Wide experts to find out how to identify dishonest brokers.
Fortunately, most crooks don't like to overdo it and leave a lot of evidence. Therefore, the first thing to do is to check the basic markers.
What exactly does a legal and honest broker have? It has a registered legal entity, a real physical address, an office working at this address, a license, and even more than one, fixed contacts, telephone numbers and a normal e-mail address not for free public service, a normal website.
So, after the first data about the potential partner is collected, you need to check them all, says the expert Stocks Wide. Look at maps on the internet to see where the office is located and what else is there. Whether the broker's office itself is marked on the map. Whether its contact information is listed there.
Get the license number and check it on the website of the state regulator that issued it. Or just look up the license number in a search engine.
Investigations are conducted by experts
Tsodenkov says that the first and easiest check eliminates a lot of the laziest crooks at once. But it is not enough. Since we're already talking about licensing, let's go deeper into the matter.
"Some Forex traders like to tell that the foreign exchange market is global, and therefore they work under a license from Curacao and all the trading is done within the legal field of this Caribbean island," says Andreas. - That is not to say that we have found a crook. But we at Stocks Wide do not recommend working with such partners.
«A» for behavior
Once you've taken care of the paperwork, checked that the address is real, and that there are real people working there, it's time to pay attention to how the broker behaves.
"A financial institution, especially one like a stockbroker, will never throw words around," says Andreas. - For example, we at Stocks Wide, as well as our best competitors, have a strict ban on promising profits or performance guarantees. This does not mean that we will close tomorrow or steal profits. It's just that we will only say yes to things that we have 100% influence over.
Anything can happen. The site can stop working. The most unforeseeable event could happen. The markets may collapse. A real broker will overcome the technical problems, and on intervention by the government will make public the plan for further action. Which all real brokers will have in common.
The second point, Stocks Wide notes, is that scammers not only make exaggerated promises, but also are intrusive. Their managers are pushy, they are constantly begging customers (or rather - victims), to increase rates, to introduce more money. Their advertising is shorty and exploits a well-known psychological device - you are threatened that you lose something by turning them down.
"Stocks Wide, like all real financiers, wants to work only with clients who consciously trade the stock market. We're not looking to make a little more money in the current quarter and put the company's reputation at risk because of the negative reaction of a client who suddenly did something on emotion and now thinks we are to blame," Andreas noted.
And then we get to the most interesting part - the reviews.
Study the reviews on the Internet
Now a lot of people tend to think that reviews are no longer relevant. Too many garbage reviews, often written for money, bad and good reviews. And after reading them, you can get even more confused than before you read them. Stocks Wide experts insist - reviews should be read. And you need to pay attention to exactly how they are written and what they say.
Obviously, detracting reviews, written in copy, will be an indication of a competitor's detractive PR campaign. You may come across reviews that are directly incriminating of fraud. Or you may find that reviews are written by dissatisfied customers with clearly inflated expectations.
Keep in mind that negative reviews like to write more often than positive ones, so it's worth analyzing their ratio.
Finding a scammer before a company stops paying or suddenly stops working is not possible 100 percent of the time. Be careful!