Forex trading has been particularly popular in recent years. Industry analysts note an increase in forex trading volume despite the global crisis triggered by the impact of COVID-19. Retail traders are more attracted to markets during times of higher volatility and falling prices. Just about anyone can get started in forex trading, but a good background in economics, a properly funded trading account and an understanding of risk management techniques are important.
An unregulated broker is a person who is engaged in brokering activities abroad but has not gone through the procedure to obtain a Forex licence and is not regulated by any recognised jurisdiction. Such brokers are not under the supervision of the financial market regulator in a particular country and therefore may not be liable to the governing governmental authority in the client's state.
The top 10 best unregulated forex brokers are shown below:
- Pocket Options
- Absolute Markets
If an unregulated broker commits fraud or in any way abuses his or her position, the client has little or no recourse. Such brokers can defraud the user in several ways
- take the money, using software "glitches" or "bugs" as an excuse;
- fail to process withdrawals;
- fail to process a client's trades in the market.
How do you protect yourself from forex scammers?
- Familiarise yourself with the platform and study the reviews before you start forex activities:
- You need to check out the broker.
- Choose a forex broker that has undergone the licensing process (check for a license);
- Study the broker blacklist;
- Carefully read the terms of the contract.
- Fraud with fake forex signal sellers
A forex signal seller is an institution or individual that offers advice on when to make forex transactions in the market. Signal sellers usually claim to rely on market analysis and news to determine the right time to trade. They may offer trading advice through automated messages or may send you messages manually. In such cases, it is important to research additional information, conduct market and offer analysis and do your due diligence before making any trade.
As mentioned earlier, it is very important to only trade with persons who are regulated by a government body, as this way you can sue the broker in case of a breach of contract. Regulatory bodies vary from country to country and some jurisdictions have collective funding agencies and policies such as ESMA and MiFID in the case of the EU. It is worth investigating regulatory issues before you start investing.