CFD market is absolutely large, and people from all over the world trade every day in this global foreign exchange platform. More than trillion dollars are invested per day here, and it is needless to say, because of its giant market size, the number of brokers is very massive. Millions of brokers are operating the business internationally, and many of them have years of experience.
This overgrowing situation is really appreciated, but a problem arises when we try to find out a broker for our own business because getting the best broker proves as searching the needle in the hay. It is quite impossible sometimes to get an honest broker without facing forgery. Particularly beginners suffer a lot in this type of situation because they have little knowledge about the market and its operation.
Ways to find out the illegal brokers:
An easy fix of this issue is to find out the brokers who are operated by the regulatory authorities and practicing the ethical techniques of the business. In this guide, proven strategies will be discussed to identify the bad brokers easily so that you can run trading flawlessly.
The best method we can follow is to check the reviews about the brokerage platforms, and if we find so many bad reviews, then it will be wise to leave that brokerage as soon as possible because it may provide us so much harm rather than making the good. But beginners must be careful of the reviews, too, because sometimes brokerage agencies get those positive comments using fake reviewers. Newbies must read all reviews carefully and judge a brokerage house based on the relevant criticism. You can verify the reviews by using the demo account offered to the retail traders. Get it from here and you will definitely agree that Saxo cares about their clients.
If we find a broker is offering the most benefits and is not maintaining the average standard, then we must guess that taking the opportunities from that agency can bring a huge risk for us because if someone is offering more than the possibilities, then surely he is performing the illegal practices. Investors should consider their safety first.
Not having a license
Checking the license surely helps to differentiate between a legal or an illegal service provider, and we can check it very easily by going to the bottom of the broker’s website. If he has a license, then we can find the necessary links at the footer of the homepage. In these places, we must check if he has the license or membership of FSP, FSA, NFA, or CFTC.
A good broker will always ensure 24/7 active customer service, and if they are not providing the best customer management service, then we can surely agree that the brokerage house may compromise with the after buying service of them. One great method to check this is to give a call in their number to test their service, and if they receive the call and answer properly against all the inquiries, then we can get surely that agency as one of the best service providers.
Website with bad usability
Beginners can easily differentiate a bad broker from a good one by checking the usability of the websites. A good broker’s website will be always active with a good user interface and highest loading speed. On the other hand, a broker who is not professional about his service will be so careless about his business website.
To the bottom line, we have to say a good broker will try to do everything to provide the best customer service. We can gauge the reliability of the brokers by testing the customer support, web interface, and reviews easily, but we can also take a little bit of service from any broker spending a little amount to find out the later services will be good too.