The forex market is the largest financial market in the world and the possibility of making profits in the market serves as an incentive to foreign exchange traders of all expertise levels; from newbies that just learn the basics of the financial market to professionals with years of trading experience.
Steps to Avoid Losing Money In Forex
Despite how natural it is to trade forex with non-stop sessions, access to critical leverage, and generally low costs it is likewise exceptionally easy to lose cash exchanging forex. Here are five different ways that traders can avoid losing money in the highly competitive and risky Forex market.
- Find a reputable broker
Unlike many other sectors of the financial market, the forex industry has much less oversight. Hence, it is likely you end up doing business with a less-than-reputable forex broker. Before you invest your money in any forex broker, make sure you are working with a trustworthy broker, because the safety of your deposit and your chances of making profits in the forex industry depends on the integrity of the broker you choose.
A good way to check for the integrity of a particular broker is to check if they are licensed by any regulatory authority. If you are in the United Kingdom, make sure that your broker is registered under the Financial Conduct Authority (FCA) and for the United States, make sure your broker is a member of the National Futures Association (NFA) and is registered with the Commodity Futures Trading Commission (CFTC) as a futures commodity merchant. Each country has its regulatory authority in charge of forex broker, make sure your broker is registered under the authority of the country you are in.
Apart from the registry status of your broker, you should also research the broker’s account offerings, including commissions, leverage and spreads, account withdrawal and funding policies and minimum initial deposit. A helpful customer service representative should have the information and will be able to answer any questions regarding the firm’s services and policies or online research can also be helpful.
- Keep your chart clean
When you open a trading account, the various technical analysis tools may be enticing and you might want to take advantage of them all. However, utilizing multiple of the same technical analysis tools might be redundant and may sometimes give opposing signals, so you might feel having lots of analysis tools might be helpful, it is best to keep analysis techniques to a minimum to be more effective.
You should keep your chart clean, any analysis technique that is not used regularly used to enhance trading performance should be released from the trading chart. In addition to the minimal amount of analysis tools applied to the chart, be observant of the general aesthetics of the workspace. The chosen fonts, colours and type of price bars (candle bar, line, range bar, etc.) should create an easy-to-read and interpret interface, allowing quicker response to changing market conditions.
- Use a practice account
Demo accounts or Practise accounts are available on almost all trading platforms, some people don’t believe in demo accounts but it is important if you are interested in raising your level of vigilance and cutting out the chances of losing money in forex. Demo or Practise accounts allow you to trade the forex market without putting your money for the purpose of practice – it helps you become proficient at order-entry techniques.
Part of the things that are damaging to both traders’ accounts and confidence is pushing the wrong button when ordering or closing a position. These events are common, for example for an amateur trader to mistakenly add to a losing position instead of closing the trade.
Multiple mistakes in order entry can lead to large, unprotected losing trades. Aside from the devastating financial implications, making trading mistakes is quite stressful. Practice makes perfect. Experiment with a demo account before placing real money on the line.
How to Get Money Back from Forex Scam
- Get In Touch With Forex Regulatory Authority:
You will be lucky if the broker that scammed you is registered under a regulatory body. If the broker that defrauds you of your funds is regulated, your chances of getting your money back have increased exponentially. You just have to look for the regulatory authority that your broker is registered with on their website. After that, get in touch with the regulatory authority, you might find their contact form on their website or a simple Google search can help, inform them of the mishap and give them information about the broker.
Regulatory authorities you can trust:
- Financial Conduct Authority (FCA)
- The Australian Securities and Investments Commission (ASIC) – Australia
- The Financial Industry Regulatory Authority (FINRA) – US. And other European regulatory bodies.
However, the chances of being scammed by a registered broker are low, knowing they will lose their website and licence and face financial and legal consequences, fraudulent brokers don’t bother registering.
The regulatory authority will assist you in getting your money back. In most cases, you are scammed by forex scammers that are not regulated in the first place.
- Hiring Recovery Experts:
Recovery experts are professionals who deal with various sort of scammers, they have knowledge of how most forex scam scheme operates and have gathered intel over the years on how to recover funds from different forms of scams. When you contact a fund recovery expert to file a complaint against a forex scammer, your chances of getting your money increase exponentially.
Depending on your mode of paying this fraudulent broker, the recovery expert will likely file for a chargeback from your bank, this will reverse the transaction you made. You can always file for a chargeback yourself, however, due to the low success rate you are advised to hire an expert that can guide you doing the process. The service of recovery experts is not country limited. A fund recovery expert in the United Kingdom has enough resources to track down a forex scammer in the United States or anywhere in the world.
Go to Recoveries Pro to hire a fund recovery expert today.