How to avoid Forex scams

Welcome back to another edition of learning Forex,

We are here to create and make those Forex minds shine brighter than fifty diamonds stuck together. We had looked at what are known as Forex bucket shops. If you think I have taking a few too many and now writing gibberish you should refer back to the articles BAD FOREX BROKERS. There I tried to demystify, as usual, what a bad Forex trader is and how to avoid getting hooked by one. We looked at the term bucket and why would a bucket appear in a Forex market…again if you don’t understand go to BAD FOREX BROKERS. So back to learning..

How to avoid Forex scams,

If you thought before the brokers had all the advantage and you were at there mercy then you need to know how to even the odds. How do you do this well:

Compare price feeds

Failure to compare the prices of your broker against others is like a horse wearing blinders. You will be blind to all that’s around you and be susceptible to what he says. So its best to subscribe to 3 or even 4 price feeds

Record Everything

Always  keep a journal of all your transactions. This is of utmost importance always. If you think your being cheated and have no legal proof you are just as good as dead. The easiest way is to take screenshots of every order you make. You will be able to easily question all disputed trades.

Take Legal Action

If the worst comes to the worst and cant resolve the dispute with your broker then its time to take legal action. Most of the time brokers give in when it comes to legal action. If they still don’t, refer to the Commodity Futures Trading Commission (CFTC) or the National Futures Association (NFA).

Good Trading Habits

Like we have stressed before here we are keen on creating consistent successful traders. This goes back to trading being a skill and good habits are what make a skill stick. Even with all the tools provide to guard yourself against the Forex scams it all boils down to you being a good trader if not great. Remember no matter how much time you put into finding a good broker, or good system it falls on you discipline and dedication. Its easy to blame others (the brokers) but at the end of the day it falls upon you to take you where you want to go.



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