Beware of bad actors in forex trading
With the development of technology the bad people have also become smarter. They are now cheating innocent people online. And that is why we all need to be very careful when we doing anything online. Specially if it related to our trade, then we should always be ready. Currently a lot cheat FOREX brokers are available in the market. And people are believing them, investing with them without any kind of market research and product evaluation. We should remember some of the criterias while investing with FOREX BROKER. We should always look for “regulēts brokeris”.
There is no single and centralized currency trading (FOREX). Each currency broker can buy software and create a trading venue where the customer can trade the currency with other clients of this broker or with the broker himself. The Broker’s Forex Marketplace can be nothing more than a server in Purvciems.
Forex markets are largely unregulated and based on professional brokers representing large banks, multinational corporations, governments and speculators. Individual traders account for a very small market share of transactions, and prior to engaging in this market there must be reasonable assurance of their own experience and abilities. It is to be understood that the currency market is very volatile, and losses can occur rapidly, especially in the case of a large large loan portfolio.
Forex brokers often offer various bonuses, free platforms, software for the client to start trading immediately. To make money, Forex brokers need a steady new inflow of customers, so large amounts are spent on marketing and customer loyalty.
Be careful if you hear the promises:
- During the year, the profit can be at least five digits or the profit will be measured at 10 or more per month.
- Investing in Forex with a low risk level can always be protected against losses.
- You will be able to earn, regardless of the rise or fall in the market.
- Investing is immediate, otherwise it may be too late.
- The company gives you money for doing business.
Fraudsters in Forex markets often:
- Proposes a profit, but real customers do not get it. Sometimes even real trading is not done, but customer money is used for quite different purposes.
- It is said that the customer’s tasks enter the big Forex market, although the other side of the transaction is often only one broker of the company and they never enter the open market.
- Manipulates the first deals for customers so they are profitable and the customer gets confidence in their abilities.
- Encourages the use of a large loan (more than 1:10), and then, referring to the suddenly occurring price fluctuations in the market as a result of the suddenly occurring price fluctuations in the market, triggers automatic customer sales orders. The client’s “properties” are sold at unreasonably low prices.
- It shows one price in the so-called demo accounts, but in real accounts, prices are presented with a delay, which allows the currency broker to earn the difference between real market prices and prices for which the customer submits purchase or sale orders.
- Client’s submitted purchase or sale orders are executed with delay. If the prices in the market during this time are already changed currency broker earns on the difference. Delays are often justified by line distortions, server load, etc.
- Declares that most customers profit, although most usually suffer losses.
- Many talk about other “success stories” of their clients.
- Declares that they are experienced and prestigious investment companies
- Whatever you do, keep in mind that Forex is a high-risk market.
- Do not be pressured for quick decision making.
- Before engaging in Forex, consult an independent professional investor – solicitor, accountant.
- Request written documents for all transactions.
- Do not invest more than you can afford to lose.
- Do not invest in Forex markets any loans or savings that may be needed.
- Check out an intermediary that offers investment, “fame” in independent sources, including government institutions.
* The recommendations are based on the advice of the US Commodity Futures Trading Commission and the Internet.
The binary options use the same assets that are in the forex and stock market. This means that binary options are subject to the same strategic framework for stocks and currencies. The main difference is the simplified process (no need to think about credit lines, stop-loss orders, and feverish follow-ups) and short expiry time, which tends to mitigate some of the traditional strategies.The first thing to look out for is to use a strategy as “expiry time,” or an expiration date. 30-second and 60-second deals will only work for those who want to test their fortune and intuition. Strategic transactions should be selected from 15and 30 minutes ‘expiry time’, as technical and fundamental analysis can already be used for analysis.
In the world, in Europe and also in Latvia, insurance brokers – brokers, tied agents and multi-agents (with different names in different countries) – are increasingly taking on insurance business. According to European data, in the legal entities segment – up to 90%, and individuals – 75% of the premiums written. Based on the information available on the website of the Latvian Brokers Association regarding the volume of insurance premiums written by insurance brokers and the total amount of the subscribed premiums written by the FCMC, we can conclude that insurance brokers’ companies in Latvia signed in 2012 about 30% of insurance contracts signed by insurance companies and branches of foreign insurance companies premiums in Latvia.
So – brokers play a very important role in insurance and operate with large sums of money. Clearly, the role of brokers in the insurance industry will only continue to increase in the future. It is expected to increase in various specific types of insurance, which require in-depth knowledge to evaluate the offers of various insurers.
So, at the end we all can come to one understanding under the circumstances that while choosing a perfect broker, we always should go for “regulēts brokeris”. Because the regulated brokers always try to prove themselves because they are under the radar of regulation.