How do you identify a scam broker?

Discussion in 'Forex' started by SmithFX, Nov 26, 2023.

  1. SmithFX

    SmithFX

    For a certain reason, I want to shift to another broker and can you help me by mentioning some points by which I can identify a scam broker?
     
  2. Nobert

    Nobert

    * Weird domain name (ninjastrike.xyz )
    * Bad reviews online
    * Operating from 3'rd world country (including Cyprus)
    * The board team has a criminal past (not related, but all 5 main players from Tether's board has criminal records, not kidding)

    Just go for the largest names out there, IB, Fidelity etc.
     
    jys78 likes this.
  3. Easy, send 50k.
    If you can't get the money out they have scammed you.
    Let us know when that happens.
     
    TVIS, p0box4, Overnight and 5 others like this.
  4. maxinger

    maxinger

    First open an account.
    Then
    Try to withdraw $10k.

    If the broker ask you to deposit $20k first, then the broker is a scam.

    A good broker should be around for many years, and have a decent physical office.
    Some even have trading desks for rental
     
    Last edited: Nov 26, 2023
  5. hilmy83

    hilmy83

    Don't trade forex or cfds. You cut your chances of getting scammed by 98%
     
    p0box4 and VPhantom like this.
  6. mikeriley

    mikeriley

    Such a strange response.

    I think you meant, if a trader is too lazy to learn how
    to trade Forex, they should stay away from Forex.

    I've never heard of anyone being scammed in Forex.
     
  7. zdreg

    zdreg

    Viktor Niederhoffer, famous hedge fund manager, would beg to differ. Perhaps it depends on your definition of scammed. He claimed that banks consistently gave him reports with the worst outcomes of that day.
     
    Last edited: Nov 26, 2023
    p0box4 likes this.
  8. mikeriley

    mikeriley

    Concerning Mr. Niederhoffer's, I was unable to find a
    civil or criminal judgement involving any Banks.

    An accusation is not a scam.

    Did he sue, and lose the case?

    EDIT: Not sure how accurate this story is.
    But it appears he lost everything in one day!?

    He allowed his past high winning % to negate
    proper risk management.

    https://www.washingtonpost.com/arch...-trader/06ad8b48-1745-4b99-a34e-0fb19a7c3fe5/
     
    Last edited: Nov 26, 2023
    taojaxx likes this.
  9. carsonsa

    carsonsa

    number of years trading under the same corporate name. Scam brokerages change names a lot (co name red'g in the last 12 months is a massive red flag)
     
  10. Real Money

    Real Money

    #10     Nov 27, 2023
    VPhantom likes this.