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Always Deal With A Reputable Forex Company

Michalaki, Pitsillidou Law Firm > English Articles  > Always Deal With A Reputable Forex Company

Always Deal With A Reputable Forex Company

Always Deal With A Reputable Forex Company

It is well noted that there is a number of forex brokers online that do not meet a lot of times the Cysec criteria and they are subject to fines or sometimes with revoking their license. Forex announcements in Cyprus are noted on Cysec website and there are announcements that give information on an everyday basis.

Definition of a forex scam

Forex scam is “any trading scheme used to defraud traders by convincing them that they can expect to gain a high profit by trading in the foreign exchange market.” In practice, a forex scam can be failure to return money owed to traders (such as when you wish to withdraw funds or terminate an account), a lack of transparency in the pricing and execution of transactions, unresponsiveness to customer complaints, and the targeting of vulnerable individuals.

Traders should always be aware of the following:

High profits promises

Do not always believe that you can always accomplish high profits. There is always a risk involved while forex trading.

Regulation by the appropriate authority – e.g. Cysec

Always check if the broker is licensed in your region. Cysec n Cyprus sets strict guidelines for licensing in an effort to protect traders.

Be educated before on forex  you start trading

If you are a novice, it is absolutely essential to equip yourself with knowledge before you start trading. How educational is the broker? Is the trading method easy to understand from the website? What tools and resources are available to help you learn? For example, is there a comprehensive library? What is the market information like and does the broker use world-class newsfeeds such as Reuters?

Transparency

Are all the relevant fees disclosed by the broker? Are the spreads for currency pairs fixed and clearly stated? Brokers that offer low or no spread can be seen to be forex scams as their spreads may widen when the market is volatile.

Security

Do not use a broker that does not have well-known Internet and payment security systems. And ask how credit card clearing is handled.

Social Media

With the rise of social media it has become even easier to find out how genuine a broker is. Does your broker participate in open communication with their clients through any of the more established networks like Facebook, Linked In or Twitter?

For more information and guidance get in touch with our lawyers or email iMPK Global Business Law Firm – Cyprus Lawyers, at info@impklawyers.com .Tel. +357 99345000 – Fax +357 25 660097

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