The forex market has grown exceptionally in the past few years. It has witnessed a 40% rise in the daily trading volume in the previous decade. The daily turnover of the Foreign exchange market is as high as $6.6 trillion in 2020. With such amazing growth, it has gained the attention of investors from all over the world. Many new investors and old investors from other markets as well started trading in the Forex market.
Investing in Forex market helps to beat inflation and build wealth. It can also help you to meet your financial goals and even save taxes. Many leading investors in the market always suggest starting investing as earlier as possible. If you want to trade or invest in the Foreign exchange market, the first thing you will have to do is create an account with a broker.
There are many good brokers available in the market. However, many brokers in the market will try to scam you as well. Apart from that, you should also ensure that your forex broker follows all the rules and regulations in your country. There are many ways you can choose the right forex broker for yourself. This includes evaluating your needs and the type of account you need for trading. You can also evaluate a Forex broker based on its trading volume, transaction cost, market share, facilities provided, and reviews.
A good Forex broker in the Forex market is also likely to provide exceptional customer service. However, it could be a daunting task to determine the right forex brokers for yourself that provides all the brokerage service you need in the Forex market. You should consider a forex brokers list before you decide on one broker. We also listed some of the trusted forex brokers you can check out.
But before that, let’s see some of the red flags you should consider while selecting a forex broker.
Regulations
Regulations are the first thing you should keep in mind before choosing a Forex broker. Choosing a well-regulated broker is very essential in the foreign exchange market. Going for a well-regulated broker is relatively safer and will ensure that the broker will not scam you in the future. If a well-regulated broker decides to scam you, they are likely to get their license canceled by the regulatory body. Another great advantage of going for a well-regulated broker is compensation. You will get adequately compensated if the broker gets bankrupt in the future.
Get rich quick schemes
Stay away from a broker that offers you any sort of get-rich-quick scheme. This is based on the fact that the Forex market is good for long-term investment but won’t get you rich in a short time. If a Forex broker is trying to lure you through the get-rich-quick scheme, then there is a good chance that the broker is trying to scam you. You can get success in the Foreign exchange market, but it will take time. However, a scammer will likely tell exactly the opposite. They will tell you how you can earn a lot of money in a short time that is certainly not possible in the Forex market.
They Don’t Want You to learn
The more educated you are, the less likely you get scammed by the brokers. An investor with good knowledge about the Forex market is something the scammy brokers avoid. Moreover, these types of brokers are likely to stop you from learning anything about the Forex market. A good broker, on the other hand, will provide you with a demo account where you can easily trade with fake money to improve your trading skill. Many good brokers also have a trading academy that is very helpful for new investors who want to learn about the Forex market.
Negative Reviews
A lot of people get scammed in the Forex market daily. However, a few of them leaves an online review about the forex brokers online describing their service to help other peoples. Negative reviews are another red flag you should be aware of before choosing the Forex broker. Reviews may not always be a good indicator of the credibility of the Forex broker. However, a forex broker with an overwhelmingly negative review is likely to have scammed other people in the past. By looking at the reviews from Google and another platform, you can avoid the brokers that scam other peoples in the market.
Some Forex Brokers trusted by many traders
Here is a list of the best and well-reputed Forex brokers in the Forex market. Going with a highly trusted broker ensures that you won’t get scammed in your trade. Additionally, many of these brokers have a demo account where you can try forex trading before actually investing in the Forex market.
IG – A well-regulated and trusted Forex broker. Best Forex broker overall.
XTB– A highly trusted broker with one of the best customer service.
City Index – A versatile broker that offers many trading options.
Forex.com – Another exceptional forex broker with an all-around offering. However, it is not a discounted broker.
Interactive Brokers – A great Forex broker for professionals with competitive fees and institutional-grade trading.
E-toro – A highly traded broker by the trade volume and highly trusted in the market. The best platform for copy trading. You can easily copy trades of investors with over 2300 instruments.
Conclusion
The Forex market is one of the most speculated markets in the world. It has grown at an exceptional rate over the past few years. It is a market that is open 24/7 that enables you to buy and sell currency pairs at any point in time during the day. A Forex broker plays an important role in making your trade possible. However, there are many scammy brokers in the Forex market as well. Hence, you should go for a highly trusted and well-known broker with good customer service to avoid any issues in the future. There are many red flags that you should be aware of before choosing the Forex broker for yourself. These red flags are lack of regulations, negative reviews, and get-rich-quick schemes. Apart from that, you should always do good research about the Forex broker that you are going with to avoid any problems in the future.
