In terms of brokers - do you homework - check their regulations, then go to the regulatory body and check that brokers profile for history and fines. Finally, make sure they arent listed as a scam broker by FPA and then you are good to go
Same in Belize: The International Financial Services Commission of Belize (IFSC), Belize’s financial regulatory body, recently issued a warning notice against forex broker Financial Strategy Holdings saying its operation is “a complete forgery”. The regulator said the above mentioned broker has not been licensed in Belize and is not allowed to conduct trading activities in the country.
The IFSC asks in the notice for information from anyone contacted by representatives of Financial Strategy Holdings.
The reality is brokers, and all of them can become 'scams'. A broker can go under, and even if they are regulated you still won't get your funds unless the regulatory agency recovers what was lost, or if restitution was given. Don't get me wrong, regulation makes you sleep good at night, and some people like the fact that they can file claims if something goes wrong, but the reality is you aren't any safer then you are if you traded in a bucketshop.
I think regulation makes us safer in the sense that if you file a complaint against a scammer at an agency which has official authority to regulate the market and that agency then exposes the scammer, the information becomes so much more widely available to newbies who may buy into the scam otherwise. I mean, the word of an official watchdog agency carries a lot more weight than an anonymous review written somewhere else. Also, one of the first things a person researching the broker they'd like to work with does (or that's what they should do, at least) is to check such official blacklists. So people looking for such information can both easily find it and, hopefully, trust it.
Well, speaking of official warnings and scammers, I also have this: FCA warned that Ayondo Markets Ltd is a clone firm of FCA-licensed social trading company ayondo markets Limited (https://theforexreview.com/2016/01/08/fca-warns-of-clone-of-social-trading-broker-ayondo-markets/) The clone is using information about the genuine broker to make themselves look legitimate, although they have nothing to do with he original. I actually took a look at both their sites, and they look chillingly similar. They even use the same logo. To be honest, if I were a newbie, I'd totally buy the scam. I might've even bought it now, if I weren't warned.
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