Welcome Guest Log In Register. Read latest posts or hide this alert. Share on Track this topic Print this topic. Nov 14 , Show posts by this member only IPv6 Post 1. Most new traders struggle to find a genuine forex broker who is transparent and provides a great forex trading experience. There are several reasons for this, but one of the major reasons is the mindset of the traders themselves.
As most new traders are lured into the forex game through a fake forex broker as an easy way to make money, they have a wrong image about the forex market and hence do not know how to get long term success. Most of us know that forex is one of the most volatile markets in the world, and due to its floating nature, the prices of the currencies cannot be predicted.
But the question of how to identify weather a forex broker is genuine or not depends on several factors. You can also check the various internet websites like forexstars and other to get reviews about the various forex brokers. Here are some ways how you can check the authenticity of a forex broker.
Tier 1 licenses under: Tier 2 licenses under: Vincent, Belize, Indonesia etc Traders and investors can check with their corresponding regulatory agencies that check the credibility of the forex brokers. Analyze the Website We all know that in this age of peerless internet technology, coming across fake content is totally possible and one must first check the website first for a clear picture of the reviews.
In such cases you have to judge for yourself whether the reviews are real or are posted through automated software to get more viewers. If a website allows regular users to comment on their posts that is a great sign of openness. While there is nothing wrong in referrals, the viewers must also use their full discretion when it comes to judging whether the reviews are genuine or not.
Transparency Is A Must The best way to know whether your forex broker is a fake one or not, is to look for his list of clients.
While several fake brokers might tell you that it is against the law to disclose such information, the reality is the total opposite and no genuine broker would be afraid to share the list of his clients. Genuine brokers use their network of traders more as their work portfolio and you can always judge the authenticity of a broker through the profiles of the various clients and traders that he deals with.
Look At How The Broker Works While this would be like judging a book from its cover, forex brokers can be judged based on how they deal with their clients. Make sure that the broker has a valid proof of operating under a government regulation. Forex is a highly fluctuating market and to ensure profits one requires having a really keen eye and a really honest forex broker. Forex trading is a risky business and requires a lot of experience and skills, to earn profits over a long term period.
Hence it is highly important that the new traders must check the genuineness of a broker to experience a non-stressful forex trading environment. Lucrative upfront commission SCAM 4. Fix exchange rate for deposit and withdrawal SCAM 6. Cash payment or local deposit SCAM unless through regulated payment gateway. If matched 3 of the above indications, then it is definitely a SCAM! List of Genuine Forex Brokers 1. GSM Financial Group 3.
Capital Foster Advisor IIB International Broker Exia International Group Sentratama Investor Future Midasama Pruton Capital Atlantic Global Asset Management In case you have invested or trading with any of the scam brokers above, try your very best to withdraw your money back ASAP. If you can't take out your money, file a report or complaint to your local regulator. In most cases, it does not help as scam brokers do not hold any licenses and end up regulators unable to trace them.
Feel free to share your experiences with any other brokers and allow us to add on to above lists. We welcome everyone who required due diligence or advise to check the genuineness of a FX brokers. After all, it's FOC. This post has been edited by DrFX: Nov 30 , Show posts by this member only Post 2.
Did you get it from statutory bodies? Even Bank Negara has this disclaimer on their list for listing something like this This list is not exhaustive and the Bank will update the list periodically from time to time. The list is intended to serve as a guide to the public. The public is advised not to make any deposit or investment with individuals and entities that are not regulated under the relevant laws and should conduct the necessary checks with the relevant authorities if there are doubts regarding any schemes offered.
The public is also advised to refer to the Investor Alert and information on enforcement actions published by the Securities Commission of Malaysia SC which is accessible via the following links: This post has been edited by yklooi: Show posts by this member only Post 3. Come to think about it Illegal Foreign Exchange Trading Scheme refers to the buying or selling of foreign currency by an individual or company in Malaysia with any person who is not a licensed onshore bank or any person who has not obtained the approval of Bank Negara Malaysia under the Financial Services Act or Islamic Financial Services Act Show posts by this member only Post 4.
Show posts by this member only Post 5. Show posts by this member only Post 6. I thought only the ones offered by our banks are legal? The rest are illegal isn't? Show posts by this member only Post 7. Show posts by this member only Post 8. This is interesting because I have seen a number of private dealers advertising on business cards.
Or is this allowed? Show posts by this member only Post 9. Nov 15 , Show posts by this member only Post Scam Partial Brief explanation: Claimed to be not having True-ECN spreads as claimed by the broker but manipulated spreads Scam potentially Brief explanation: Same problem as the above FxPro , plus another issue; that some users experienced difficulty in withdrawing their profits or even getting paid back their capitals at all Scam highly likely Brief explanation: Claimed by users to not have True-ECN spreads but manipulated spreads In addition, users also did comment about the somewhat bureaucratic nature of opening an account eg.
Based on Google-Search for user reviews of the brokers listed. Jul 11 , Show posts by this member only IPv6 Post Track this topic Receive email notification when a reply has been made to this topic and you are not active on the board. Subscribe to this forum Receive email notification when a new topic is posted in this forum and you are not active on the board. Look at all my stars!! Follow One Course Until Successful. As long as you are trading with a tier 1 licensed FX broker, then you are completely safe.
Exness obtained a Cyprus license and it seems that they are genuine but doesnt mean they are good. Trade with tier 1 license FX broker will be safer bet. Indeed, if you are based on BNM perspective. However, if you admire the international financial regulation, then you will have different point of view instead of just blindly referring to BNM.
They are right in terms of protecting Malaysia citizen. Furthermore, nowadays BNM integrity has become a big question in terms of dealing with recent hot topic which make Malaysia a well known country for the wrong reason. This company has very impressive marketing and branding. This does not mean it is not a scam. Above showed are paid either by the owner own money or worse by investors fund.
Any FX company operate and collect funds from investors without proper financial license At least tier 1 or 2 financial license are considered scam. Any FX company with lucrative up front commission for agents and locked clients funds for certain period are completely scam.
Why there is a must to have a top tier license as a genuine broker? Owner cannot run away with your money. The regulator will protect the clients on certain level and hunt the FX broker down if any wrong doing.More...