How to select an honest broker?
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  • #1 Collapse

    How to select an honest broker?
    The best advice I can give is don’t trust anyone whose reputation you cannot validate and whose association is not legitimately tied to the actual forex market. This is especially important when selecting your forex broker.

    The allure of trading forex can be overwhelming. It attracts many eager fx traders willing to gamble away their life’s earnings. Unscrupulous forex brokers, signal providers, fx educators, software peddlers, and forex frauds are waiting, with baited breath, to take your money and turn it into a profit for themselves – all at your expense!

    The good news is that many forex professionals are honest and reliable, capable of assisting the most inexperienced fx trader succeed. Following forex signals and making profitable currency trades happens 24-hours a day, all around the world. The philosophy behind Forex Justice is to even out the playing field so everyone has a fair chance at winning.
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  • #2 Collapse

    Re: How to Know the Scammers!!!

    Originally posted by elkashab View Post
    The best advice I can give is don’t trust anyone whose reputation you cannot validate and whose association is not legitimately tied to the actual forex market. This is especially important when selecting your forex broker.

    The allure of trading forex can be overwhelming. It attracts many eager fx traders willing to gamble away their life’s earnings. Unscrupulous forex brokers, signal providers, fx educators, software peddlers, and forex frauds are waiting, with baited breath, to take your money and turn it into a profit for themselves – all at your expense!

    The good news is that many forex professionals are honest and reliable, capable of assisting the most inexperienced fx trader succeed. Following forex signals and making profitable currency trades happens 24-hours a day, all around the world. The philosophy behind Forex Justice is to even out the playing field so everyone has a fair chance at winning.
    So what are the simple things one should see to identify scammers because you really didn't state any of such point in your post. You could just tell us easy ways to identify scams.
     
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    • #3 Collapse

      Re: How to Know the Scammers!!!

      But wait a minute everybody i thought the starter of this thread have a way of helping others in how to discover and know a scammers but there is nothing like this contents in his post.well i think this guy should make himself clear to us is he asking for how to know them or he has some technics to know them?pls guy once again try to make yourself clear so we can know how to help you.this is a live and friendly forex forum and the best online forum so far.so don't hesitate to let us know what you really mean by starting this thread.

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      • #4 Collapse

        Re: How to Know the Scammers!!!

        Originally posted by abo3ali
        you can not trust any one because you do not know him but ther are a few well known persons in some forums who are trusted and there reputation is very good , but only few .
        One has to learn to remove trust from his life if you actually want to live long and happy. never trust anyone because we are in a very terrible world with too many wicked and fickle minded people. I don't even trust any forex broker, it's just that i have no option.
         
        REAL IS REAL and DEMO IS DEMO

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        • #5 Collapse

          Re: How to Know the Scammers!!!

          Originally posted by elkashab View Post
          The best advice I can give is don’t trust anyone whose reputation you cannot validate and whose association is not legitimately tied to the actual forex market. This is especially important when selecting your forex broker.

          The allure of trading forex can be overwhelming. It attracts many eager fx traders willing to gamble away their life’s earnings. Unscrupulous forex brokers, signal providers, fx educators, software peddlers, and forex frauds are waiting, with baited breath, to take your money and turn it into a profit for themselves – all at your expense!

          The good news is that many forex professionals are honest and reliable, capable of assisting the most inexperienced fx trader succeed. Following forex signals and making profitable currency trades happens 24-hours a day, all around the world. The philosophy behind Forex Justice is to even out the playing field so everyone has a fair chance at winning.
          Important conditions for selecting your forex broker are:

          - Borkers registered with CFTC : Commodity Futures Trading Commission or/and member of NFA : National Futures Assosiation .

          - Support answer you very very fast

          - no minimum amount to withdraw

          - Withdraw between 5 min to 24 hour (online banks)

          - small minimum deposit like $50 or $100 . (this condition is not very important because there some great brokers that their deposit $5000 minimum)

          - Logical BONUS

          - Small spread for majors


          ....etc

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          • #6 Collapse

            Re: How to select an honest broker

            You can do us more good by outlining some basic techniques that will help us to identify scammers. As we all know, it is clear that the ratio of scammers to genuine brokers is greater than one. We will wait for more information.

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            • #7 Collapse

              Re: How to select an honest broker

              This is a very good thread but I think you should help us to identify some simple guidelines to selecting a genuine and honest broker. The risk is getting higher by the day.

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              • #8 Collapse

                Re: How to Know the Scammers!!!

                Originally posted by confirmme View Post
                Important conditions for selecting your forex broker are:

                - Borkers registered with CFTC : Commodity Futures Trading Commission or/and member of NFA : National Futures Assosiation .

                - Support answer you very very fast

                - no minimum amount to withdraw

                - Withdraw between 5 min to 24 hour (online banks)

                - small minimum deposit like $50 or $100 . (this condition is not very important because there some great brokers that their deposit $5000 minimum)

                - Logical BONUS

                - Small spread for majors


                ....etc
                To be honest, it is the best test to compare the broker companies and choose the best of them and I think the best is the first and second criterion must also be registered in NFA, and technical support is available 24 hours a day and do not delay in resolving the problems of the members in it

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                • #9 Collapse

                  Re: How to select an honest broker

                  First of all , i want to say happy AID to all mt5 mesulman members

                  personaly my test is based on this 4 points :

                  1- Fast Support

                  2- Withdraw time ( online banks )

                  3- spreads

                  4- Fast Metatrader platforme ( order executions )

                  i want to add that it's deficult to find a brokers that use online banks ( not talking about paypal ) and in same time registred with CFTC or even NFA .

                  thank's for thread question
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                  • #10 Collapse

                    Re: How to select an honest broker

                    It's should not to be registered with NFA and CFTC they not the only one regulated body in this world.

                    I preferred
                    1. Trust able (join in forum ask other ppl experience with the broker you want join best is ask your country mate or ppl you can trust)
                    2. Good support
                    3. Fast and easy withdraw
                    4. Transparency (it's about their term and rule)
                    5. Trading environment (spread/******/platform etc)

                    Like insta have negative review on other forum but I ask many ppl in my country at forum the real condition, many ppl trade here and with large deposit and I have good review about insta from them. After that that I join with insta, some negative review can come from competitor or trader that not read the terms and rule of the broker.
                    since 2011-01-02 03:57:23 GMT (+02)

                    Disclaimer:
                    Past performance is not Indicative of future results

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                    • #11 Collapse

                      Re: How to Know the Scammers!!!

                      Originally posted by stelove View Post
                      But wait a minute everybody i thought the starter of this thread have a way of helping others in how to discover and know a scammers but there is nothing like this contents in his post.well i think this guy should make himself clear to us is he asking for how to know them or he has some technics to know them?pls guy once again try to make yourself clear so we can know how to help you.this is a live and friendly forex forum and the best online forum so far.so don't hesitate to let us know what you really mean by starting this thread.
                      Here is some how i found it.

                      Registeration:
                      Check if the broker is registered by the National Futures Association (NFA) or Commodity Futures Trading Commission (CFTC), while the Financial Service Authority regulates brokers in the United Kingdom. (FSA) or any other association atleast (The well known the Better). Because the forex market is largely unregulated.

                      Trading
                      After finding reputable brokers, you need to gather more information about how they do business, are they readily available to answer questions, or resolve complaints. You can do this by reading what they have on their website, and by calling them on the telephone to see how quickly and how well they respond, or getting advice from the many chat rooms about forex, including those provided by the broker. Although almost all forex trading is done over the Internet nowadays, sometimes Internet connections don’t work, or the company’s trading platform isn’t working the way it should or the way you think it should, so it is very important that they also provide telephone service.

                      Most brokers offer both regular and mini-accounts, and require trades in specific lot sizes. A regular account usually requires at least a $10,000 deposit, and lot sizes are 100k—that’s 100,000 units of currency—and leverage ratios up to 100:1. With a ratio of 100, it takes only $1,000 to buy or sell $100,000 worth of currency. A pip is equal to 10 units of currency with 100k lot sizes. If the currency is USD, then 1 pip = $10.

                      Mini-accounts require a deposit of as little as $100, and lot sizes are usually 10k, with leverage ratios as high as 200—$100 can buy or sell $20,000 worth of currency. A pip = 1 unit of currency. If the currency is USD, then 1 pip = $1. You can generally buy or sell as many lots as you have leverage for, so a mini-account allows smaller increments. For instance, with a mini-account, you could buy or sell $30,000 worth of currency, but with a regular account, the minimum would be 100,000 units of currency, or increments of 100,000 units.
                      The most important criteria in selecting a forex broker after assuring yourself that they are reputable brokers is the trading platform, the currency pairs offered, and the spread, the difference between the bid/ask prices, which is how the forex broker is compensated, and the best way to judge these criteria is to open practice accounts with several brokers, which most offer, and trade for about a month in each account.

                      Practice accounts allow you to trade forex using live market data and using the company’s software, but without using actual money. It is important to practice with such an account, because forex transactions can be confusing, and using the software will take some learning, especially to use the software proficiently.
                      If you are going to begin trading with a mini-account, which is highly recommended, then you should also start with a practice mini-account. This will give you a better idea of actual profits and losses, both from trades and from interest.

                      Support:

                      Telephone Support:
                      While most currency trades are done over the Internet using the broker’s trading platform, it is important that they also provide telephone support, because if anything goes wrong with your computer connection or your computer, you won’t have any other way to initiate trades, set limit or stop-loss orders, or close out a position, which can lead to large losses over an extended period of time.

                      Support Chat:
                      Chat is useful if you have a problem. It has more immediacy than email, but is usually easier than the telephone. Many problems, especially with the trading platform, require interaction, and chat provides the best method for resolving these kind of problems, since you can chat while actually using the trading software.

                      Supplementary Services:
                      Many brokers provide other services to supplement trading activities. These include chat rooms, news, and charting services. While these are nice to have, there is no reason to restrict the use of these services to your broker's, since there are many other websites that also provide these services, and it is likely that there are some websites that will be better than your broker’s.

                      Forums:
                      Forums, or chat rooms, allow you to talk about anything with other people. Forums are a good way to find out about other people’s experience with brokers, especially if you’re not using the broker’s forum. It is also a good way to learn about the trading platforms of various brokers, and about potential bugs. If you want to find out more about the trading platform that you are using, then it makes sense to talk to others in the broker’s forum, since these people are using the same software that you are.

                      However, do not take anyone’s advice on what trades to make. Use any suggestions as a different view and as a way to consider what you may not have considered otherwise, but most advice about trades is probably not good advice, because the currency markets are very random. Few people, probably not any, know what the currency markets are going to do in the next moment or the next day, and such advice, even if it turned out to be correct, would become rapidly stale in the fast random walk of currency prices.

                      Charts:
                      Charts are helpful in seeing where currency pairs have been. All currencies trade within a certain range. As one currency trades higher against another, corrective forces start to limit the ascension. For instance, if the dollar is weak against the Euro, then more United States products will be sold in Europe, because they will be cheaper and fewer European products will sell in the United States because they will be more expensive. This increases demand for the dollar and lessens it for the Euro. Likewise, more Europeans will be inclined to tour the United States because their money is worth more, and fewer Americans will be inclined to travel to Europe because it will be more expensive.

                      Charts are also used extensively in technical analysis, which tries to predict future prices by seeing patterns in the charts. While many traders use technical analysis for trading, because it is very difficult, if not impossible, to predict currency prices from fundamental considerations, forecasts based on technical analysis are frequently wrong, and long-term forecasts could not possibly have any validity because ultimately, it is the relation of supply to demand that determines prices, and technical analyses cannot quantify this, nor predict changes in fundamental variables, such as the future interest rates of countries.

                      News:
                      News can sometimes be a big mover of markets, and it is widely available. The problem with news is that it can be too much, and it can be hard to forecast prices based on the news, since many factors affect currency prices.

                      Most trading platforms have squawk boxes that deliver the news as it comes out. Most of this information is difficult to read and harder to interpret. Often it is based on someone’s technical analysis of current charts, but if one could make money simply by following the advice of technical analysts, then we could all be rich.

                      Conclusion:
                      You must remember that when you place an order with the broker, your order cannot be seen by anyone else other than your broker—not even other brokers. All of your transactions are with the broker—not other traders. This is the big disadvantage in trading over the counter (OTC), in contrast to organized exchanges. The OTC market is great if you have a need to hedge some transaction in business, for instance, and you need specific terms, but it is not really that good for trading for profit, because it is the broker that decides what the spread is, and it is the broker that buys and sells with you. So a good part of your potential for profits is whether your broker is fair. In fact, because the broker develops the trading software, or, at least customizes it, you can be restricted from doing certain things that you might be accustomed to doing with stocks, for instance. You may not be able to set a limit order within the current spread to initiate a trade, for instance.

                      One factor you should definitely consider is requotes. A requote occurs when you thought you made a purchase or sale at one quote, but the broker tells you that it was actually something else, usually at a less favorable price to you and more favorable to him. If you get more than a few requotes, you should definitely consider taking your business elsewhere, because it shows a lack of integrity for the broker.

                      A good way to compare actual trading is to open real mini-accounts with several brokers. Because mini-accounts require very small deposits to open, most people should have no problem opening several accounts to see what their actual profits and losses are, broker fees, and responsiveness. This also helps if one of the brokers goes bankrupt. At least you won’t lose all of your money because you placed it with one broker.

                      Hope this answers your question.

                      HAPPY HUNTING LOTS OF PIPS

                      out
                       
                      ALWAYS HERE TO HELP.
                      Knowing Is Not Enough, We must Apply. Willing Is Not Enough, We must Act.
                      A Mere Thanks Will Be Much Appreciated ====>

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                      • #12 Collapse

                        Re: How to select an honest broker

                        selecting a good broker is also a most important thing to be done to become successfull trader. i prefer to select a ruputable trader from the list. it is better to surf different forums and here the feedbacks of the common members about there services and support. these feedbacks are vital to decide the broker. because most of the feedbacks are unbiased and based on their own experience.
                        but it is better to have not more than two brokers, otherwise we may loose our focus.
                         
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                        • #13 Collapse

                          First check whether the discussions about that broker in forums.Then have a live chat with them and also email your questions to them.If they give proper response,they are honest.Then practice demo trading with them.If you are satisfied, go with live accounts.

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                          • #14 Collapse

                            Originally posted by zoomfire View Post
                            First check whether the discussions about that broker in forums.Then have a live chat with them and also email your questions to them.If they give proper response,they are honest.Then practice demo trading with them.If you are satisfied, go with live accounts.
                            How do you check in the forums because in almost every forum the things that are said are mostly bad about the brokers any way. Mostly people who come to the forums are those who have been already cheated or have some other issues with the broker. Secondly mostly the good reviews are given by the broker associated agents.
                            Yes i do agree with the chatting live to see their responses. I think one must always check their support respose via email or telephone etc, and always check the fine print in the agreements, because that's where it all starts.


                            HAPPY HUNTING LOTS OF PIPS
                            out
                             
                            ALWAYS HERE TO HELP.
                            Knowing Is Not Enough, We must Apply. Willing Is Not Enough, We must Act.
                            A Mere Thanks Will Be Much Appreciated ====>

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                            • #15 Collapse

                              Paying attention to reviews in the forum is a good choice of testing brokers but only if most of the people say the same about the broker. You can never know who is saying truth or not, maybe some just want to heart a broker's popularity. Denwabiz i agree with ya!
                               
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