Determining a good broker that is not tricky. On the internet it is easy to find the criteria for a good broker, but actually there are some that are ambiguous. Because it could be that the bad comments about broker A come from a paid account of broker B. That's why to determine a scam broker and not, we only need to pay attention to a few important things, namely:
a. Regulator
Every forex broker always has permission from the regulator. This permission is very important because it ensures the security of client transactions. In my community, the best regulators are the Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), and the European Securities and Markets Authority (ESMA). The brokers regulated by the three regulators are certainly not scams.
b. Market manipulation
The broker is naughty at times. They manipulate charts to catch up with traders' stop losses. So, if there are digital traces of this matter, then the broker is not suitable for use. Even if they are regulated. The easiest way to find indications of stop loss hunter manipulation is to match their prices with two other brokers. Suppose there is a candle with a long shadow or a gap that is too extreme that is not found in two other brokers, you can be sure that the broker is a scam.
c. Track record
It's easy easy. Because even though there are many bad comments about a broker on the internet, that does not mean that these comments are true. We have to really look at it. It could be that the comments come from people paid for by competitor brokers and traders who do not understand broker terms & services.
d. Brokerage
Sometimes there are brokers who give away no deposit bonuses but they are not regulated by the three regulators above. This is fine as long as the bonus withdrawal is easy. If the requirements for withdrawing the bonus are difficult, for example using the same IP or can only be followed once, then forget it. Because this kind of broker is a scam. The royalty sharing of the no deposit bonus is compensation for the lack of permission he has pocketed.
Those are the four characteristics of a safe and comfortable broker. What about other features such as using e-wallets for deposits, being established for a long time, and limiting trading strategies? These things are less important. Because these characteristics go back to the type of broker and service facilities they provide. I will explain the point to make it more delicious.
a. Trading strategy restrictions: these policies are usually taken by dealing desk brokers. The reason is that certain techniques can overload their servers, for example trading news strategies.
b. E-wallets for deposits: brokers who offer this do not mean they are scam. Deposit via e-wallet is a form of convenience provided to clients who do not live in the same country with the broker. In addition, the existence of e-wallets means that clients do not have to bother making credit cards for deposits.
c. Was born long enough: is the old broker not a scam? There is no guarantee about this. For a new broker, he must be regulated by the three regulators above because of the lack of track records.
