Here are 4 of the most common broker scams to look out for in the Forex world.
- Failing to mention the conceivable risks of trading
Anytime a broker fails to disclose the possibility of losing an investment in the Forex market, they are trying to trick you. A legitimate Forex broker will always include a risk disclaimer in all of their marketing material. Whether that is text disclaimer on their social posts and email marketing, disclaimers must always be added. To verify that a broker is trustworthy, try checking out their social media page and keeping an eye out for the sacred text disclaimer. Financika’s website has even dedicated an entire page to this concept.
- Persuading you that the markets will definitely fluctuate
Although technical analysis is a real integrated part of the Forex markets, no one can be absolutely confident about how the price of anything will change. Predictions with a solid amount evidence can be made, but at the end of the day they remain just that – predictions. If you a broker is trying to convince you that they know the future without a margin of error, then it is a scam. Safe brokers will always offer technical analysis free of charge. Brokers such as Financika will even include daily updates about the market on their page. An economic calendar is also a useful tool that decent Forex brokers offer to traders. When deciding if you are involved in intricate Forex scams, try analyzing the tools. Financika offers all of the formerly mentioned tools free of charge to their current and perspective customers. At the end of the day, your broker should be trying to help you succeed, not hinder your ability to make money.
- Hiding their Terms and Conditions
This is an obvious one. Before you place your hard-earned money in the hands of anyone, you need to understand who they are. Promotional bonuses are all fine and dandy until you find out that there is a hidden catch. Terms and conditions should be as transparent as glass in order to
- Not explaining how Margin works
If you try to trade you will definitely come across the term “margin”. Many Forex advisers do not properly define margin and leverage to their customers. However, if you are not aware of the differences between the two terms you risk losing your money. When trading with leverage, you are essentially using money that does not belong to you. This scary concept is overlooked by many novice traders. Learning the proper terminology and having a grasp on the concept of margin is essential for all traders.
So, is Financika legit?
The answer is yes. Although this opinion may seem biased, facts speak louder than words. When it comes to the formerly mentioned scams, Financika abstains from all four. Instead, Financika proves it is a legit broker by offering useful learning tools, terminologies, market analyses and providing clear and concise terms and conditions and risk disclaimers.
Sources: investopedia.com / bloomberg.com