MT5 is the leading trading platform for trading and investing in Forex stocks. However, you can’t open a Forex account directly on the platform and need to register with a broker’s platform.
Unfortunately, there is a staggering number of scams among the thousands of MT5 FX online broker offering real and demo Forex accounts on their platform. While the number of scam brokers is gradually decreasing as Forex trading gets more regulated, you can never be too safe when storing all your hard-earned money on a broker’s platform.
Luckily, there are signs to help you figure out whether your Forex broker is a scam or not, so you can trade your virtual and real currencies securely.
How to Find a Safe Broker
The first thing to look for in a broker is clear communication. An MT5 FX online broker should keep their clients’ interest foremost, and brokers that provide vague answers or don’t respond to questions and requests should be considered immediate red flags.
Another essential step to protecting your FX account is doing online research. Read broker reviews through online trading forums. Familiarize yourself with the US regulations for Forex brokers and find a complying broker.
Additionally, read through the fine print for contingencies before opening your account, including terms and conditions, no matter how extensive they may be. Once satisfied with your research, open a mini version with small capital and upgrade after a few months.
Broker Scam vs. Trading Loss
While people often come across broker scams, disgruntled traders get confused between trading loss and broker scams. You may come across forums and posts where traders complain about never making a profit when they kept funds on a broker’s platform or suffered a loss by the market reversing as soon as they invested.
Brokers aren’t involved in stop-hunting and intentionally causing losses, whatever the case may be. These common experiences may result from failed strategies and lousy investment timing. For more information, please visit Atropi.