5 dont’s in choosing a BROKER
Many clients chose a Broker without really knowing if that Broker is authorized and function through legal means. It is important to do your research prior investing your capital in Forex since there is high risk of losing all your invested capital.
This articles provides in depth insides and tips so as to avoid Brokers who may use unauthorized ways to get clients.
So read carefullyâ€¦.
1. The European Securities and Markets Authority (ESMA) Forbids Bonuses
It is important to read the terms and conditions of each broker so as to understand if cashing out a bonus is possible.
2. Check broker’s penalties
Their licenses may be suspended so be alert.
You can check a broker’s license in the relevant authority website.
3. Financial Advises
In order to give financial advices, brokers are required to get the appropriate licence.
Therefore, it is important to check the regulator’s website as to see what services they can provide.
Is the Broker authorized? If yes from where?
Some â€˜gurus’ give advises without actually being permitted.
4. Don’t Ignore the Risk Warning
Please do not ignore the Risk warnings. There is a reason that warnings exist and that is to inform you that you can lose all of invested capital. A profit is not guaranteed. Bear in mind, that extensive training and learning will raise your chances.
Example: You can notice the risk warning under the open an account. Please see below;
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5. Check the Broker’s license for cross border services
You can simply and easy check the Broker’s regulator website in order to see which countries the Broker is allowed to provide services.
So, if your country is not written on the regulator’s website then I have to you should seek a Broker who can legally provide you with their services.