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Broker selection and forex scams

How do we find a good forex broker among the tens and thousands of them worldwide. If you are a forex beginner you can be overwhelmed with many offers and promotions. On the other hand you are already aware of the scary forex scams. It is an unfortunate reality that the number of forex scams is increasing every year. This is of course because the forex market is under-regulated when compared to the other financial markets like the stock market. However, this very feature provides the forex flexibility, the freedom of choice and such a vibrancy. There is no doubt that forex is a real and flourishing internet business and a source of income for many experienced traders.

The "snake oil" scammers prey mainly on the gullible who have not done their research and are desperate for a "get rich quick" solution.They will tell you to join their services and cajole you with over-the-moon promises such as making thousands of dollars with little capital to invest and no work. They will produce counterfeit but professional looking screenshots of past trades highlighting the profits made and testimonials. They can be very convincing but again you have to do your research.

What kind of research can be done? Obviously many people go into the web-surfing gear and initiate deep research. Others find it better to search for forums that tackle about the matter and hear opinions from experts before choosing a forex broker.

Many look into review websites and make a list of best forex brokers. How does one make this list? Tossing the ratings of the review websites aside, how would you choose the best forex broker for you from this list?

First, find a good website that gives reviews of forex brokers. You can go for any website, as long as the data is reliable, backs-up their data well with numerous data presentations, and is able to tell specifically the pros and cons of a single forex broker.

Remember that many forex review websites promote specific brokers for a fee. However, not many of them will promote scammers and untrustworthy players because they know they won’t get paid themselves.

Then reinforced research includes numerous websites for cross comparison. You never know if one website’s list would turn out to be a lot different from another website. However, don’t make list too much forex brokers, and try to cut the list to at least 10 forex brokers. That way, you’ll save your self from the confusion that would make it hard for you to do the second step.

Go with an order of prioritization with a selected category. Many people are familiar with the idea of arranging their list of best forex brokers according to overall rank, with each criterion carefully analyzed and calculated to give a numerical. While this may be a convenient and a logical way of arranging them in a list, there is still what we call as a priority. What would be the most important criteria that you would need now? Would I need to leave out the less important criteria when look into the list? Choose according to what would be your top priority, but never choose a forex broker that rates very poorly on one area.

If there seems to be no more competition in skill and reliability and you still can decide on a forex broker, try to go for a criterion that is unrelated to a criterion that you have previously used for comparison. The location of the forex broker can be a good alternative, although it’s probably impossible to use location as a criterion for offshore forex brokers.