When trading Forex, it’s important to identify trustworthy brokers and avoid those who are not, as you wouldn’t want your hard-earned money to be scammed and disappear into thin air due to “system glitches”.

Scam brokers are unregulated, meaning they’re not required to comply with any regulatory body. An unregulated broker can scam you with stuff like a "system glitch" or a "failure" that causes your money to disappear, or if you go to withdraw money and they don't process it and etc.

There’s nothing much you can do when this happens as no regulatory or legal authority will be able to help you.

Always check if your broker is regulated before we deposit a large sum of money.

 Steps to identify legit regulated brokers and scam brokers.

1. Legit brokers are regulated, scam brokers are not

Regulation bodies are like the police in the broker world, they will ensure the brokers look after your money and have fair money practices thus decreasing the chances of you getting scammed. 

The simplest way to check broker registrations is to look at the bottom of their website. Below is a sample image showing VC Plus website, you can see that it shows clearly it’s regulated by FINTRAC

VC Plus is a true one-stop web-based platform, regulated by FINTRAC

Open a free forex account with VC Plus 

Usually, for brokers that are not regulated, there will be no mention of regulators on their website. And this is one of the warning signs you should be aware of.

    2. Legit brokers have a legit regulation body.        

There are scam brokers that claim to be regulated and registered by regulatory bodies. But the regulatory body might not even  be regulating forex brokers or regulating the stated scam broker, some don’t even exist.

Always do research on the regulatory body, and try to search for your stated broker on the regulatory website.

Sample of regulatory body FINTRAC, the details of FINTRAC from google

Search your broker on the regulatory website and see if it’s in the record to verify the authenticity, above image is VC Plus record on the FINTRAC website.

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    3. Segregated Bank Account is a sign of a legit broker

A Segregated Bank Account means your funds are kept separate from the broker’s funds. This arrangement has the primary advantage of preventing fraud and theft.

For VC Plus, your funds are safe with HSBC bank 

​This means that the broker cannot use any of your funds for its own purposes, and it’s nearly impossible for banks to run away, this will protect you from the broker’s own financial risk.

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Few common methods of Forex scam

1. Failure to perform trading obligations
2. Regular technical failures of the platform, which lead to loss of money;
3. Made-up reasons for refusing withdrawals
4. Manipulations with trading accounts
5. Fake advice is given by analysts.
6. The unreasonably high return rate
   

Open a forex account with VC Plus today and grab a guaranteed US100$ Welcome Bonus (T&C apply)

VC Plus provides a demo account, therefore you can try it before you begin your real trade!