Best Scam Free Forex Brokers
Welcome to Is-Scam.com Forex Broker Rating hub! Today there are over 1000 Forex brokers who offer their services online. While the majority of Forex brokers offer a fair and decent service, there are still some who engage in fraud, price manipulation and unfair business practices.
At Is-Scam, we have a team of experienced traders who investigate, test, and analyze in detail Forex broker scam complaints we receive from hundreds of traders on our website. Following our analysis we have made a selection of reliable and trustworthy brokers and it’s recommended that you check them before choosing a Forex broker.
Top Forex Brokers for April 2017
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Please check back with our website regularly, since we are constantly investigating new brokers and updating our rankings.
Why is Forex Trading so Popular?
There are many advantages of trading Forex compared to other markets. Here are just a few reasons why traders choose Forex. The market is open 24 hours a day. It’s the world’s most liquid and volatile market, with a lot of opportunities to place trades and profit. There are no commissions and fees and most brokers have a low minimum deposit requirement, which means that traders don’t need a huge capital to begin. Almost every broker offers a free demo account, so that you can practice and test out the market before trading with real money.
How to Choose a Forex Broker?
There are hundreds of Forex brokers who offer their services online and it’s important to choose one that’s reliable and fair. Here are some factors to consider when choosing a Forex broker.
- Regulation – Most legit brokers are regulated by a financial governmental institution, such as: CFTC/NFA in the United States, CySEC in Europe (Cyprus), etc.
- Minimum Deposit – Some brokers have a requirement of only $100 while others require $1000 or more to begin trading.
- Trading Platform – Almost all brokers offer the standard MetaTrader 4 (MT4) or MetaTrader 5 (MT5) platform and some might have their own propriety platform. Check to see if they offer mobile trading as well.
- Leverage – Some brokers offer leverage of up to 1:500 while others 1:20. Leverage helps traders make bigger trades with less capital, so it’s important to check what leverage is offered by the broker.
- Dealing Spreads – The dealing spread is the difference between the bid and ask price, which you “pay” each time you make a trade. This is the way brokers earn their money, so it’s important to check what spreads the broker charges for the currency pairs you want to trade.
- Fees & Commissions – Since the majority of brokers earn their money from the dealing spreads, they shouldn’t charge any fees and commissions. However double check that with the broker to see if there aren’t any hidden fees and commissions.
- Currency Pairs – All brokers offer the major currency pairs such as: EUR/USD Euro vs United States Dollar, however some might offer a bigger selection of currency pairs with more exotic ones, such as: USD/ZAR US Dollar/South African Rand, etc.
- Free Demo Account – Almost all Forex brokers offer a free demo account, which is a good way to practice and test out the market before investing any real money.
- Customer Support – Brokers should be reachable in variety of ways, such as phone, live chat, email, etc.
3 Forex Scams to Watch Out For!
1. Manipulating the bid/ask spread. Normal spreads are usually 2-3 pips on EUR/USD, however some shady brokers might increase their spreads around 7-8 pips during certain trading times, which will cut out of their client’s profits. Before you sign up with a broker, check on their website the spreads they charge and then be on the lookout for any suspicious spread spikes.
2. “Stop Hunting”. This means that the broker knows where clients place their stops and sometimes they’ll manipulate the price and touch those stops, causing their clients’ positions to close out. This is an old dishonest practice and it’s not very common anymore, however be on the lookout for any suspicious closings of your Stop Orders.
3. Withdrawal issues. If you’re dealing with a regulated broker, chances are that there shouldn’t be any withdrawal issues. However some shady brokers might delay your withdrawals or refuse them altogether. It’s wise to begin trading with a small sum and make several successful withdrawals before you deposit a larger amount.
Forex trading is a popular way for those who want to make money online and profit from the currency exchange market. However you need to be careful when choosing a Forex broker, since there some who engage in unfair business practices and can scam you out of money.
At Is-Scam, our goal #1 is to prevent scammers from fooling traders. That’s why we do research, test, and analyze all scam investigations we receive on our site from hundreds of traders.
To ensure 100% Safe Trading experience, we recommend you to choose one of the Scam Free brokers listed above OR Proceed to Safety by registering with the top #1 safe Broker Trusted by Is-scam.com.