Fraudulent forex firms are probably the worst thing that we have passed on to our next generations. The number of lives these have collectively ruined is large and unfortunately, they continue working at the same pace. Many people say this is a mistake on the government’s part for not setting or making functional enough regulatory authorities. Strict implementation of rules and regulations can be highly effective in this regard but until then we need to take up the responsibility. If the traders start taking timely steps and precautionary measures to avoid being scammed by these firms then there is no possibility that they will find their way into your assets.
Fake firms have become more of a headache these days and we need to get rid of them as soon as possible. It is something urgent but time taking so the only way is to reach out to experts and seek advice.
Keeping this in mind we have taken The Investment Center Broker Mr Christian Ricci on board with us today. Mr Ricci is an expert at forex-related issues. He has spent many years of his career observing how these firms work. He can quickly distinguish between a fake and a real forex firm. He says that all forex firms have a few features that are in reality the distinguishing ones. He will be shedding light on the all-time famous “no commission fee scam today”. So let’s make use of his expertise and see what a firm actually means when it makes any such claims. We hope his valuable advice will help you all in the longer term.
Watch out for “No commission fee” brokers
A wise trader will not only watch out for a broker which promises no commission but will also stay miles away. Many traders seem to be easily trapped by such claims and this is why the evolved fake firms make the most use of them. Always remember that free cheese is only in a mousetrap. Forex brokers are running a business and not a non-profit organization. If commission fees are not there to help them pay bills, they’ll get the money some other way. Unfortunately, this is then done by speculating skillfully on the bid or sell spread. So it costs the customers the same, in fact, more because now you are not aware of what the firm is taking from you. Also, there’s no documentation so legal agencies can easily be fooled too. Not to imply in any way that all agencies which do not demand commission fees are safe but it is said that around 99% of such firms are fraudulent.
Many reports have also said that firms that manipulate traders this way give the traders around 30-35% of what they earn as profits as a result of the given deal. You should always double-check the shown values and make sure that you are being provided with real-time authentic data by your broker.