How To Know A Forex Brokerage Is Trustworthy? (My real experience)

The appearance of scammers in the name of a forex brokerage is increasing rapidly although the forex trading industry itself is trying to trim it short by imposing and introducing different regulations. For me, it was not a very easy ride to find the right forex broker for me. I’ve been scammed by a group that pretended to be a forex broker offering very lucrative ads on social platforms. I believe all the other people that fell for the trap experience something similar.

But there is always another side to a coin, and PU Prime is the kind of broker I found after studying and analyzing how to know if a forex broker is trustworthy or not. It is not rocket science to choose the right broker but had I known this before, I might not have been scammed.

To help all my community members, I’m listing my ways to find a credible and reliable forex broker. I believe if you look for this particular information in a forex broker, there is no way you would get scammed.

1. Regulation of a Broker

Since there is no central body that regulates forex brokers globally, different regional and national regulators issue licenses to forex brokers so that they can operate in those respective regions and countries. For instance, in my case, since I choose PU Prime, an Australian forex broker, they must get a license from Australia’s Security and Investment Commission (ASIC) in order to operate a business there and deal with Australian traders.

It wasn’t really hard to check their Australian regulation and legitimacy. I just browsed https://connectonline.asic.gov.au and searched their name to confirm their legitimacy of being an ASIC-licensed broker. As you can see from the image below, PU Prime is a forex brokerage with an ASIC license; their ACN number is 626 461 701. This proves their competence to legitimately serve Australian traders.

If you’re from the United States, you should look out for the forex brokers licensed by SIPC, CFTC, FINRA, NFA, and SEBI. The Financial Conduct Authority(FCA) is responsible for approving the forex brokers to operate in the UK.  To check their legitimacy, just browse their website and you’ll get the search option where you’ll get information about the legitimacy of the brokers, just like I did in my case.

2. Forex Broker’s Website

From my experience, the second key factor to consider in determining the legitimacy of a forex broker is their website. If a broker is serious about their business, they ought to have an informative website that would instruct traders about their services, and themselves.

The website of a trustworthy forex brokerage should clearly mention their regulations and licensing, every risk associated with trading with them, their experience in helping traders, and lastly their contact information.

3. Reasonable Expectations

It is probably a very common desire of traders to expect huge profits in forex trading. But this desire of making huge profits spurs one to take more trade beyond their affordability. It’s not only just me but I believe every experienced trader would agree to the fact that there is no such thing as overnight success in forex trading; any forex brokers who approach a trader and promise a quick way to make a large profit are just scammers. No forex broker can promise such a return on investment or trading success. All they can do is help us with services that could define a way to make profits and come successful consequently.

4. Customer Support

Legitimate forex brokers are well equipped with all the necessary tools and services a trader needs. Customer support is exactly the kind of service that is required. A trustworthy forex brokerage will have a responsive customer care team available around-the-clock to address any questions that traders may have. I’ve got flawless customer support from my broker and their availability is something I’ve greatly benefited from.

Since the scammers do not have plans to stay long into the service they mostly  bother to  support. If they even have one, it would be mostly inactive.

5. Research and Reviews

This is a part I believe every trader should do. From my experience, I can tell you that if I wouldn’t do research after that tormented situation, I wouldn’t be here, writing this piece for you all. It is very important to research or do a study about what you can look out for in a forex broker. You should research a broker before opening an account with them for forex trading. Checking out offered platforms, minimum deposit fee, spread, leverage, demo account availability, and payment methods are something a trader must do before choosing a broker. Although awards are not a highly reliable indicator of a broker’s authenticity, you can check to see if they have any. You can be sure that a broker is real and legal with their service if they provide you with a demo account.

Reviews are another factor you should look out for. Before choosing a broker, a trader should go to a review site like Trustpilot, reviews.io, Sitejabber, and trustindex to read the user experience. If a trader can read a good number of reviews, they will be likely to get a clearer picture of the broker’s services and determine whether they are a scammer or not.

Conclusion

I really believe that I could show you a way to find the right broker through this write-up. Since picking the right broker is the first step of a forex trader, one must pay heed to it very carefully. If a trader goes according to the points discussed, the chances of getting scammed would be very thin. A decent, informative website and responsive customer support are investments that any broker worth its weight will make regularly. Although trading is a decent business, it almost always costs a lot of time, expertise, and patience to succeed. Don’t let the fruits of your labor be taken from you.

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