If you do an internet search on forex broker scams, you will be surprised to find out that there are a very few forex brokers that can be trusted at all. However, this information may be tampered by disgruntled traders, who entered the world of foreign exchange trading without first acquiring adequate knowledge, and by competitors.

In this piece of information, we will be accessing tips on how to stay protected against forex broker scams.

The real problem starts to develop when communication (email, phone, fax, or live chat) between the trader and the broker breaks down. A broker providing vague answers, not picking up the calls or responding to emails, should be treated by a trader as possible signs that the broker is not looking out for the best interest of its clients. Good brokers always make it a point to resolve issues, if any, at the earliest so that their reputation is not tarnished at any point of time. It always makes efforts to educate its clients (traders) so that they can make informed decisions.

In order to protect yourself from such issues, you should always conduct an online search for broker reviews. Access ratings and reviews of different brokers before finalizing one and always take time out to find out if there are any outstanding legal actions against the broker. In addition to that, you should also make sure that there are no complaints against the broker when it comes to withdrawing funds from trading accounts. If you find any such complaint, you should contact the user (making the complaint) and ask them about their experience with the broker.

Furthermore, you should always read through all the fine prints before signing any document related to account opening or account information change. You should be smart enough to understand all laid-out and possible contingencies in regard to your trading account. Once you are completely satisfied with the broker, you should open a demo trading account with it; avoid a live trading account at an early stage.

If you find any issues with the functioning of the brokerage firm, you should be stern but not rude. You should clearly tell them what would be your course of action if your genuine problem is not addressed by them. The course of action could include posting comments on online forums, marking them as spam, and reporting the issue to the regulatory authority.

We hope that this information on forex broker frauds and how to stay protected against them would help you have a clear understanding of the foreign exchange market.