How do you identify a scam broker?

S

SmithFX

For a certain reason, I want to shift to another broker and can you help me by mentioning some points by which I can identify a scam broker?
 
* Weird domain name (ninjastrike.xyz )
* Bad reviews online
* Operating from 3'rd world country (including Cyprus)
* The board team has a criminal past (not related, but all 5 main players from Tether's board has criminal records, not kidding)

Just go for the largest names out there, IB, Fidelity etc.
 
First open an account.
Then
Try to withdraw $10k.

If the broker ask you to deposit $20k first, then the broker is a scam.

A good broker should be around for many years, and have a decent physical office.
Some even have trading desks for rental
 
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Don't trade forex or cfds. You cut your chances of getting scammed by 98%
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Such a strange response.

I think you meant, if a trader is too lazy to learn how
to trade Forex, they should stay away from Forex.

I've never heard of anyone being scammed in Forex.
 
mikeriley said:
I've never heard of anyone being scammed in Forex.
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Viktor Niederhoffer, famous hedge fund manager, would beg to differ. Perhaps it depends on your definition of scammed. He claimed that banks consistently gave him reports with the worst outcomes of that day.
 
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Viktor Niederhofer, famous hedge fund manager, would beg to differ. Perhaps it depends on your definition of scammed. He claimed that banks consistently gave him reports with the worst outcomes of that day.
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Concerning Mr. Niederhoffer's, I was unable to find a
civil or criminal judgement involving any Banks.

An accusation is not a scam.

Did he sue, and lose the case?

EDIT: Not sure how accurate this story is.
But it appears he lost everything in one day!?

He allowed his past high winning % to negate
proper risk management.

https://www.washingtonpost.com/arch...-trader/06ad8b48-1745-4b99-a34e-0fb19a7c3fe5/
 
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number of years trading under the same corporate name. Scam brokerages change names a lot (co name red'g in the last 12 months is a massive red flag)
 
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