Three trillion pounds a day is traded globally, making it larger than all the world’s stock markets added together. If the suspicions of rate fixing and other manipulations turn out to be correct, it could turn out to be a bigger scandal than that surrounding the exploitation of the Libor, the interbank borrowing rate. Before signing up to a Forex broker make sure you do your due diligence so as not to lose your hard-earned investment funds. Start by asking them these three important questions before signing up with a forex brokers:
1. How much of my money would go for commissions, management fees etc?
And ask whether there will be other costs such as interest or storage charges, or whether the investment agreement involves any type of profit sharing arrangement in which the firms’ principals participate. Insist on specific answers, not vague and evasive responses such as “that’s not important” or “what’s really important is how much money you are going to make.” And, again, get it in writing, just as you would any other type of contract.
2. How can I liquidate (i.e., sell the item I’d be investing in) if and when I decide I want my money?
If you find that the investment is illiquid, or there would be substantial costs if liquidated, or that you are unable to get straight and solid answers, these are all things to consider in deciding whether you want to invest
3. If disputes should arise, how can they be resolved?
Short of having to go to court to sue someone, does the company or regulatory organization provide a mechanism for resolving disputes equitably and inexpensively through arbitration, mediation, or a reparations procedure? Aside from seeking important information, you may be able to detect whether the salesperson is uncomfortable or impatient with this line of questioning. Swindlers generally will be. Finally, ask them if they are regulated by relevant financial authorities.
If it is too late and you are already in a situation where you feel have been defrauded by forex brokers contact me here