I started as Amateur Trader 7 years ago, found how to build a good expert advisor and founded a financial company - ThirdBrainFx- which was asset manager controlled by the Swiss Market Authority during 3 years. This company is still running without me now. I was not from finance world and i discovered a lot and a lof about the tools, the people and the mix between them.
I know perfectly how to recognize people who lie to you about Forex and about Financial Market. I had bad business partners, i made bad choices and selected the wrong route some many times that i did all the errors i could do in this business and i want to let you know - i working in another field now - all what i learn during this years. With more than 60'000 live clients and after produced one of the best EA for retail, being broker ourselves and worked with some many partners, i can tell you a part the truth now and only for you.
Only to give you back the time i spent picking the wrong people to permit you to not do the same mistakes.
There is 5 golden rules and if you can check with a guy and/or a company this 5 golden rules, you have a scammer a front of you, for sure.
Selecting a good broker is quiete simple finally :
1 - Don't select a forex company in a weak and far away country
Select a Swiss Broker by default. By default the best legislation for customers is in Switzerland in Europe and it's where the rules are really respected. Only in Switzerland, brokers needs to be bank then you have all the same rules applying to them than to another bank. Trust me after being involved in some many partnership, rules are efficient in Switzerland and people are serious and it is making a big difference.
After by default, you could pick a broker who is registred in the country where you live because it's only in this country you will be able to have some way to have your money back if there is a problem.
US, Japanese or Australian legislation are also quiete strong for customers. European one with MiFid is not so bad too.
After Switzerland and US legislation, you have the others one but don't take any risk sending money to brokers outside US, Switzerland, Europe, Japan and Australia. Cyprus or Malta could be an alternative too because they are inside European legislation.
2 - Select companies with a minimum of asset behind them
2 guys in a garage don't make a broker because they won't have the money to be the your real counterpart. Indeed when a broker accept your money, it will finally play with its own money facing the bank and needs also to cover some fluctuation around the margin. They needs finally to put 30% more to the bank than your deposit if he is not playing in B-BOOK
Big money can only support your money. It's a money game at 100%.
Small company will try to cheat you with B-BOOK. B-BOOK is only a casino game : you are playing against your broker because no order you will do will be send to the REAL market. They keep your money on their bank account and give you finally a demo "repainted" as live. After they push you to loose....
Just make some research before checking the chamber of commerce for example.
In Switzerland, the chamber of commerce is by region (canton) and accessible via www.zefix.ch and you could find accredited broker checking the FINMA website.
3 - Avoid companies with big bonus
A big bonus means B-BOOK and fake-money (see before)
4 - If a representative push you to play often, avoid them
They will cheat you. In trading, more you play, more you loose. It's simple and statiscally right for 99.99% of the traders. A bad sign is also representative pushing you to play with the news. News are the fastest way to crash your account.
5 - Becoming rich with 100 USD it's only impossible.
Money call money and less you have, faster you will loose all. Your chance to win before 10'000 USD of deposit are low. Before 1'000 USD, it's sure you will loose at 90%. Our robot can bring some % but with a medium risk until your reach a 10'000 USD. If the broker you want to choose is doing ads with this promise, avoid them.
Respecting this 1,2,3,4,5 tips will avoid you big deception and intense moment.