Pseudo brokers, fake investing companies. How not to become a victim of a fraudulent scheme? Oppinions and advice from Bytrend.com
Bytrend.com (bytrend.com) analyst Ivan Hasek considers the over scammed market as one of the main problems of modern trading. Pseudo-brokers and fake investment companies are constantly improving and present a real danger to the finances of not only beginners but sometimes experienced traders as well. Five tips designed for Bytrend clients will help reduce the chance of falling into a fraudulent scheme.
The first and most important thing is to constantly improve your skills. In trading as in any modern field of activity one cannot stop in the process of self-development. Bytrend analysts were convinced from their own experience that there is no threshold beyond which we can confidently say: that’s all, I’m an expert. Views, methods, concepts are constantly evolving, and sometimes it seems impossible to keep the rhythm of this race. However, this is a very exciting race and the prize in it is quite material – profit gained and loss averted. The lack of materials is not observed now. Fundamental literature is publicly available, recent trends are lively discussed in relevant forums and many serious companies offer specialized courses and seminars. The higher the professional level, the easier it becomes to distinguish serious brokers from one-day scammers. Very often fraudulent projects are organized by people who have a very superficial understanding of the subject and literally “burn” on trifles. For an experienced market participant a general view of the broker is enough to immediately identify suspicious points that require a more detailed analysis.
The second point: approach to the process as systematically as possible. Make a checklist and work through all of its items in order of importance. It is necessary to correctly prioritize: for example, “independent” reviews written like a copy are of dubious value but the quality of the official site’s performance already allows us to draw some conclusions about the company. Everyone will have a list of items, knowledge of the subject and common sense will help here. Well, the advice of specialists will also be useful since there is no shortage of them now. Do not forget about your own research. It is easy to find “traces” of the project organizers, partners and activity history on the Internet. The absence of such traces raises certain questions.
Tip three: communicate as much as possible. First of all, do not hesitate to clarify any issue with representatives of the broker. You choose a business partner; therefore, you have every right to all the necessary information. There is a lot to say about the company in the culture of communication and client service. A trusted broker does not need to annoy with constant ringing and pressure on potential customers. Interaction is based on mutual respect, the main goal is long-term mutually beneficial cooperation, and not drain the trader’s deposit. It is very useful to communicate with those who already work with this company. The only difficulty here is to find real people, not fake paid accounts. It is better to search for such people in specialized forums or in closed groups of social networks. Review sites or ratings, where anyone can add their opinion, is not the best place to get answers to questions.
Next tip: test the trading platform. Most brokers provide the opportunity for demo trading so that the client gets used to the functionality and in practice understands the main pros and cons. Such trading should not be taken lightly. Explore the broker as much as possible and, if you make a positive decision, start with small amounts that are not a pity to lose. Carefully analyze the failures in order to clearly understand the reason: the mistakes of a trader or the fault of a broker.
And finally, the fifth tip: keep calm. Excessive gullibility obviously will not bring to good but one should not fall into paranoia. Always remember that the choice is wide and good proven brokers are not so few.
