Signs That a Forex Broker is Illegal There are endless choices between Forex broker, all of which operate fully online and only have a website to show and prove to you that they are authentic brokers. The first and most important thing to look for in a Forex broker you are considering trading with is their license and registration. Forex brokers have regulating authorities under which they need to be registered in order to operate legally. And a company has to be registered, but other than registration there are more signs to let you know if a company may not be as real as it looks. The registering process is the biggest indicator to how legal a company is. Any registered company is by law forced to get the documents of its clients before allowing them to open an account. The purpose of the documents is to check the authenticity of a person, their address, and their criminal background, if any. A company has to request a copy of a passport or ID, and a document (Utility bill or Bank statement) with the name and address on, which matches the ID or Passport information. If a company fails to request these documents and allows registration to happen anyway, it is a red flag. Other details to pay attention to is their customer service, through live chat and phones. It’s easy for anyone to create a nice website with all the needed information, but if the company is indeed a scam it probably won’t have a full and available staff. So if your calls and live chat requests are being ignored or delayed, and if the staff you are interacting with does not seem knowledgeable or qualified that is another red flag to pay attention to. Lastly if the company does not have a big reputations which precedes it you can check Forex forums, there’s nothing like your fellow traders to complain about a bad experience with a company, and Forex company reviews, where you can read detailed descriptions of the company that will allow you to get a better idea about it. fxnet/news/signs-that-a-forex-broker-is-illegal FxNet Ltd is a global, fully licensed Over the Counter (OTC) online Forex and commodities broker, regulated by the Cyprus Securities and Exchange Commission (CySEC). FxNet is located in Limassol Cyprus. FxNets mission is to reach and retain traders around the globe through exceptional customer service, integrity and continuous innovation that will provide our clients with simple, exciting and secured trading platforms.
Posted on: Fri, 24 Jan 2014 10:04:45 +0000
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