3 tips for choosing a reliable forex broker :

Before choosing a forex broker, it is good to decrypt some information about it in order to avoid depositing capital at a rogue broker likely to swindle investors. Here are 3 tips and recommendations to follow if you are looking for a broker to practice money market trading.

Avoid unauthorized brokers
Unauthorized brokers are not all malicious, however if they do not have a license from the AMF or the CySEC, you will not under any circumstances be protected by the local financial authorities of your country in the event of bankruptcy Of the company to which the broker belongs, you will not be compensated and will probably never recover your invested capital from the broker. Choosing a regulated forex broker is investing money on the financial markets through a broker conforming to local financial rules, which deposits the funds of its traders on segregated bank accounts in major banks. This segregation of funds allows anyone to recover their money at any time and regardless of the financial health of the broker or its parent company. There is no need to take the risk of depositing money at an unauthorized broker when you can simply protect your capital by choosing a broker that has licenses from financial regulators. Etoro is an excellent example of a regulated broker recommended for both novice traders and experienced traders, licensed traders and social trading.

Do not Believe in Promises of Easy Money
Trading is anything but easy. Many unlicensed brokers try to compete with honest brokers, including aggressive advertising. They do not hesitate to display their brand and promise through slogans and advertising banners on the internet, bonuses on high deposit or a simple and assured way of generating profits. Fortunately for investors, the financial regulators AMF (France) and CySEC (Cyprus - EU) prohibit these practices and regulate for a few months the advertising on CFD's investment products of forex brokers and binary options.

Beware of new brokers
Many new brokers are emerging in recent years and it so happens that a large part of them are not allowed, they very often turn out to be scams to investment. These new brokers sometimes have a very short life span and do not hesitate to slam the door to the traders' noses and to volatilize with their capital once they have accumulated a large amount of deposit, they will then reopen under another Name and another company in order to repeat the scam. This is why it is not necessary to trust the new brokers that emerge in the industry because they rarely have licenses and are only "in the process of regulation" to what they claim. It is better to take no risk and come back to the first point of this article, namely: choose an authorized forex broker.