Is your Forex Broker a SCAM Broker?

If you are a regular poster or visitor to an online Forex trading forum, you will most certainly see this question asked three times out of 10: “is my broker a scam broker”?

Many of these online forums are littered with one tale of woe or another about Forex brokers. But are all bad experiences in Forex attributable to Forex brokers? When you consider that 96% of all individual Forex traders fail at Forex trading, surely this cannot all be attributed to some Forex broker scam activity. We, therefore, have to distinguish between activities due to scam brokers, and bad trading practices by traders.

The fact is that many retail Forex traders enter the market unprepared, without realizing that Forex trading is a bit like going to school and taking exams, with a reward of promotion to a higher grade and eventually a certificate or degree as the case may be. In Forex, the trader has to study the art of trading, and an actual Forex trade is the exam that measures the trader’s proficiency, with the reward of a profit pay-out from a successful trade. What we are generally seeing, especially in developing countries where the technology for Forex trading took a while to catch up with the rest of the world is that traders take only a few day’s training, or attend “one-day intensive” seminars on a Saturday (when the market is not running), then rush off on Monday with thousands of dollars to open Forex accounts to start trading. In such scenarios, high failure rates can only be the outcome. Many of these cases then go to online forums to report what they feel are the reasons behind their failures. You hear things like “it was as if the market was waiting for me to trade before going against me”. All this is bad trading in action and cannot be attributed to fraud activity by a Forex broker.

However, we need to say that scam brokers exist and their activities are very real. When you put money together with the greed mentality that is locked up in a secret reserve of the human soul, waiting to be tempted out of hiding, it is indeed impossible for brokerage scams not to occur. There are many ways the Bad Brokers of this world try and take your money. According to incomplete statistics, the current market has more than 30% of foreign exchange brokers illegal brokers. There are a lot of different issues that can cause alarm when dealing with currencies, which is why it's important to watch out for broker tricks and instead try to invest with a platform that gives you more control. Throughout this book you will see that how your broker scam to you. This book also helps you to distinguish swindling brokers from honest ones. Let's Start !