How to determine if a broker is a scammer

How to determine if a broker is a scammer

It is no secret that trading on the stock exchange requires a lot of knowledge and skills, understanding of many terms and relationships, as well as remarkable intuition, but even this is sometimes not enough, because in addition to all the above literate investor should be able to distinguish a reliable honest broker from a fraudster, it is about how to do it today's article.


The company's website


First of all, it is worth paying attention to the site of the broker, because it is, in fact, his face. Carefully read the information posted on the site. Check the physical address of the company registration, if it is not listed anywhere, it is already worth wary.


The fact is that all Internet brokers must have a registered legal entity, which must have an address according to the laws of most states of the world. In addition, online trading for many boxers is only an addition to their main offline activities, so they always indicate both their physical address and their contacts.


If the address is still listed, do not relax, check whether the address is true. Today it is easy to check with the help of online maps that collect data from all over the world. Unfortunately, very often such an address does not exist at all or on the place where the office of the supposedly prestigious brokerage company is located a school, bar or any other completely random building, which can not be located the broker's company.


In addition to the address, carefully check and other data, the presence of the license, as well as its existence, the benefit of many government agencies in the open access store data about such, at least the number of the document and the name of the company. Compliance with quotations placed on the site is real, because it often happens that they are not connected at all, as well as much more.




Be sure to read the reviews left about the company, both on the broker's website and on other online resources. Check whether you can leave a review yourself, if not, you obviously do not trust them, because they are written not by users, and by the administrator.


Carefully check each review and pay attention not to whether it is positive or negative, but on its content. The fact that today many companies order writing both positive reviews for themselves and negative for competitors and trust most of them is clearly not worth it.


Most often to understand that the review "fake" is quite simple, because it is either not connected with the company and describes some general impressions, not concentrating on something specific, or on the contrary describe the experience, which can not be associated with this broker. For example, the user tells how he successfully earned on currency pairs, and such servants the company does not provide or about how he brought everything without commission, and the website of the broker immediately indicates that the withdrawal of funds is charged a fee of 3%.




A competent selection of a broker is as important a component of your earnings as the choice of investment strategy, so try to approach this process responsibly. Check not only what is stated in this article but also other inconsistencies, because from scammers can suffer personally you.

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