As the world's largest financial market, it's not a surprise that Forex attracts many participants, some of which have fraudulent schemes in mind. This is why Forex scams continue to rise, even when news of such events has been spread widely online and via social networking channels.
People are not exactly uninformed, so why do they continue to fall for such scams?
In an interview with US News, regulatory and government investigations attorney Braden Perry, and CEO of Tickeron, Sergey Savastiouk shared their thoughts on the prevalence of Forex scams and how to avoid them.
According to Perry, the foreign exchange market provides the perfect "atmosphere for spoofing, ghosting and/or front-running."
The risks in Forex have also increased due to the rise of online trading platforms. These platforms, big or small, created "more opportunities for fraudulent promotional schemes, overstatement of returns and the failure to pay out for wins."
Since some Forex brokers are guilty of running scams, Savastiouk recommends that "you properly select a brokerage account and firm.”
He advises traders to:
- Make sure that you have direct access to brokers/representatives
- Ask Forex brokers regarding their trading policies and procedures
- Check if a broker uses third-party auditors
- Consider a broker's country of affiliation or location
- Ensure you trade on a regulated exchange
But is regulation the ultimate measuring stick for a legitimate Forex broker? Not exactly.
There are a few reasons why a brokerage firm would not be regulated.
One of the key reasons is that the company wants to save on operational costs, which is why it might operate under offshore licenses or remain unregulated. A licensed broker has to deal with strict capital maintenance, set up protective measures, and strictly follow best trading practices, which will cost money.
This shows that an unregulated Forex broker doesn't equate to a scam broker. It all comes down to due diligence when choosing a Forex broker and in educating yourself on how to identify fraudulent schemes.
Investigate further and look into:
- The length of business operation in the Forex industry
- Whether it's known internationally in multiple countries
- Transparency and disclosure of vital information
- Customer service, make sure clients can speak to representatives in their local language and can lodge complaints directly
- Speed of execution, especially when you want to deposit and withdraw funds
Why choose Fullerton Markets as your trusted broker
Fullerton Markets has been in the business for half a decade, with over 100,000 registered clients. Dedicated to providing our clients with unparalleled security, safety, and convenience, we've set up measures to enhance your trading experience and journey with us.
1. Fullerton Shield
Your fund's safety is foremost in our minds, which is why we implemented the Fullerton Shield, a triple-level fund safety protection plan.
Clients' funds are kept in segregated bank accounts, placed under the care of third-party custodians, covered by Professional Indemnity insurance and Crime Cover, and protected against negative balance.
2. Transparency
You’ll have access to a clear user interface, where you can view your trades and withdraw your funds anytime. When you want to follow a strategy provider on CopyPip, you’ll have access to their profiles and track record, complete with the most recent data.
You can also download a copy of our company profile at any time, should you want to know more about us.
3. Lightning speed execution
We want you to buy or sell currencies at the best price and avoid slippage. This is why our data centres are connected to ultra-high-speed servers. With network speeds of less than one millisecond, you can expect low latency connectivity and a seamless trading experience.
4. Awards and international recognition
Over the past few years, Fullerton Markets received multiple international accolades such as Best Fund Safety 2019, Best Social Trading Platform Asia Pacific 2020, and Brokerage CEO of the Year Asia Pacific 2020. These prove that we’re a broker you can rely on.
We want to create an environment built on trust, with transparency at its core so we can reach our goal to help you grow your wealth safely and confidently.
5. Responsive customer support
Our customer support team speaks English, Chinese, Thai, Vietnamese, Bahasa Indonesia, and Bahasa Melayu to serve a majority of our clients all over the globe. Whether you have queries or complaints, you can talk to someone who speaks your local language.
6. Local and international media presence
Our CEO, Mario Singh, and market strategists are leading financial experts in the industry and can be seen speaking in various media outlets, virtual and face-to-face seminars, workshops, webinars, and on social media. You can use the same channels to connect with them.
7. Commitment to educating clients
Educating clients has always been the core of what we do. Our Research and Education Team has conducted numerous training courses for both beginners and professional traders all over the world.
Instead of promoting Forex as a get-rich-quick scheme or invest-and-forget investment vehicle, we’re committed to providing you with the right knowledge and tools, so you can make better trading decisions independently.
Ready to grow your wealth in the world's largest financial market? No better place to start than right here with us! Begin trading with Fullerton Markets today by opening an account:
You might be interested in: How to Use Price Action to Boost Profitability of Breakout and Retest Trading Strategies
