In today’s tumultuous economic times, there have been a growing number of people seeking financial freedom and relief through trading the Forex market. This rapid popularity growth has given rise to a bewildering number of online Forex brokers, some with better intentions than others. With so many brokers to choose from, many novice traders find it difficult to select a respected and reputable broker that will help them avoid the many scams that are plaguing the industry. Thankfully, there are brokers, such as NetoTrade, that provide well-respected trading platforms and services, giving novice traders the peace of mind in knowing that they can profit from the Forex market as well. Let’s examine what to look out for when choosing a Forex broker in order to avoid falling victim to a Forex scam.

Promises of High Profits

In order to help you avoid a Forex scam, NetoTrade and similar respected brokers will not make false promises of being able to help you achieve high profits without significant market or trading experience. False promises of trading riches is a clear sign that a broker is operating a trading scam and is merely looking to take money from unsuspecting traders. NetoTrade always reminds traders that there are risks involved in trading Forex, just as there are risks associated with any form of trading.

Education and Training

If you are new to Forex trading, it is essential that you become knowledgeable in the Forex market and learn profitable trading strategies before you begin live trading. This is why it’s important to consider the education and training that is provided by a Forex broker. A broker should provide resources and tools to help you learn all about Forex and educate you on profitable trading methods. A respected Forex broker should also have a comprehensive library of trading information, access to Reuters and other first-class news feeds, and streaming price quotes.

Transparency

A broker should also disclose any fees that might be associated with the account and whether or not the spreads for each currency pair are fixed or variable. A broker that boasts having low or no spreads should raise an immediate red flag. Often, these brokers will widen the spreads during volatile trading times, scalping your pocketbook rather than allowing you to scalp the market. At NetoTrade, the spreads are always fixed, regardless of the market activity.

The Human Element

Although most brokers now operate online and you do not actually have to talk to anyone, it’s important to examine whether or not the live chat features and the people working behind the scenes seem real or not. Also make sure to research if they have a physical location, and if so, where it is located. Additionally, you should be able to contact them and talk to a friendly representative one-on-one. For added due diligence, you can ask them about any complaint systems they have in place. If they answer the question openly and honestly in a friendly manner, chances are they are a reputable broker worthy of your business.

Social Trading

Many of today’s leading brokers, like NetoTrade, provide a social trading feature that allows you to see what their top traders are trading, including when they opened and closed their positions. This is an invaluable tool for novice traders. Not only can you copy their trades and gain confidence while earning Forex profits, but you can study their trades and learn how to identify profitable trading opportunities yourself.

In order to avoid a Forex scam, NetoTrade should be your broker of choice. Spend some time browsing their site or open a demo account and experience all that they have to offer the novice trader.