Forex Brokers That Accept Moneygram Payment Method for Deposit and Withdrawal

If you are trading with a multi-licenses forex broker, then you could take it easy. Your broker most likely only seeks VFSC licenses in order to smooth their international operation, while providing services in accordance with higher requirements set upon by better regulatory agencies.

There's a significantly different consideration if you are trading with a single-license forex broker (and the license in question comes from VFSC). It is possible to trade with them for some time with minimum capital, but it is not advisable to continue working with them in the long term. Do yourself a favor by moving your funds to better-regulated forex brokers.

Continue Reading at What Does VFSC Regulation Mean for Forex Brokers?

You can make a complaint with the regulatory authorities governing the forex market in your jurisdiction, such as  FCA, ASIC, CFTC, or CySEC.

If you made any payments or transactions through banks or payment processors, inform them about the fraudulent activities. They may be able to provide assistance or initiate an investigation into the scammer's accounts.

Continue Reading at How to Recover from Forex Broker Scams

FCA-licensed forex brokers are generally considered trustworthy, because:

1. The company has fulfilled FCA's minimum capital requirement. A dealer's license that allows the company to run a "market maker" business needs EUR730,000. An intermediary license where the company could facilitate STP execution needs EUR125,000. The cheapest is a restricted broker license in which the company cannot hold client funds, as it only needs EUR50,000.
2. FCA will monitor the company continuously to ensure the segregation of client funds, monthly report and audit, efficient management including AML and KYC procedures, and proper risk disclosure for clients.
3. FCA-licensed forex brokers are prohibited from manipulative trade practices, such as entering into positions against their clients. Brokers also should not make unrealistic promises or offering monetary benefits to encourage clients to take risky trading decisions.
4. FCA-licensed forex brokers should not offer extreme leverage. Since mid-2019, FCA requires brokers to limit leverage on CFD trading between 30:1 and 2:1.

Continue Reading at UK FCA vs ASIC, Which Forex Regulator is More Reliable?

Brokers that loosen their requirements are much more exposed to fraud than those that do not.

Many clients have been complaining about the long safety procedure and identity verification, which can take at least a few business days to complete.

If the company keeps requiring clients to double-check their login details, verifying their identities multiple times, and confirming their intentions, people can easily back away and this means lower revenue.

Most companies wouldn't take such a risk in this dire economic situation, as customers are their sole source of income.

In the cost of satisfying their customers, brokers must face the risk of fraud. By lowering their security measures, they are practically exposing their vulnerabilities to the public. And in reality, one fraudster can cause greater harm than 100 legitimate customers can cause good.

Continue Reading at Fraud Trends that Brokers Should Watch for in 2023