We're your best review guide

FXFellow Broker Safety

FXFellow Broker Safety Johannes Röll Visitors: 229 ★★★★

 

Distinguishing and choosing a quality broker instead of a kitchen is not easy. Many people think that it is enough to search through a couple of forums and youtube channels to find the very coveted company to start trading. But not many people think about the fact that most of these “opinion leaders” are ordinary info-gypsies who are sold for a pretty amount of money. Some newbie traders prefer to go all-in and start trading with a vaunted broker, not even realizing that they will feel all the delights of the kitchen only after a while, when they realize that investing large deposits should lead to "successful" trades.

 

In fact, there is a whole gradation of fraudulent actions in relation to traders, these include:

 

Above, we described the technology of clearing client pockets on the basis of the FXFellow broker (FH Fell). In order not to fall into such a kitchen, you need to pay special attention to their work activities, as well as check all the documentation and make sure that the license is valid. In addition, if you think that you need to take feedback, you need to find them not only on the broker's portal, but also on other information resources.

 

WHAT IT IS WORTH PAYING ATTENTION TO WHEN ANALYZING THE FXFELLOW BROKER  

If you decide to visit the company's website, you should pay special attention to the footer. For those who don't know, a footer is a small piece of text at the bottom of a page, which is usually in small print and includes a short legal summary. After reading the text, it is worthwhile to come to the conclusion that FXFellow (FH Fell) only performs intermediary functions for traders to enter various world exchanges, however, if a trader encounters any difficulties, then nothing will depend on the broker.

Let's take a simple example. If you didn't know, then many Forex brokers prefer to carry out transactions on the market, but only on paper. How it works: the client replenishes the deposit for a certain amount and starts trading, the broker, in turn, pretends to perform operations, although in reality it is just a fake. Thus, the client's money is in the company's turnover. In addition to everything, the Client may be exposed to falsified quotes, due to which the dealing center will profit from the price difference.

In addition, professional traders understand that Forex trading is associated with high risks, so it often happens that most clients lose their deposits in the early stages of trading. And instead of earning a percentage of the trade, many companies choose to bypass the system, that is, buy when the client sells and serve when the client buys, whereby the amount automatically becomes the property of the broker.

 

Another common technique is the use of non-standard Forex instruments. To understand this in more detail, take a look on a situation.

 Consider the fraud with the substitution of quotes for the specific pair EURDKK: A certain broker on the trading platform, despite the fact that this asset is rigidly fixed by the Danish central bank (nationalbanken.dk) at 7.46038 kroons for 1 euro (blue line on the chart). From the graph, it can be understood that the quotes of fraudulent brokers do not coincide with reality and the Danish krone either falls below 7.30 or grows more than 7.56. And on a large volume, these are huge amounts and a drained deposit of a naive trader!

 

To summarize, in the top common fraudulent operations of Forex brokers:

 

Johannes Röll
Johannes Röll

Johannes Röll was born 1978 in Brilon,Germany. Graduated RWTH Aachen University. Over the past ten years he worked as Head of the plastic card team, where he was mainly responsible for the development of the distribution, Head of sales Department and Financial Analyst,where he got experience in planning and support sales figures for branches. For the present he works as freelancer

Comments 0

Recent Projects

FXFellow Broker Safety

EUR/USD soars amid rumors of an ECB rate hike by 0.5%

While the EUR/USD pair showed a short-term bearish profile early in the morning as part of a correction after yesterday's testing at 1.0200, it then showed a sudden sharp increase, reaching a maximum at the moment at 1.0250.

FXFellow Broker Safety

Oil price in London - Brent

On the electronic platform of the European futures market ICE (Intercontinental Exchange), symbolically located in London, spot transactions are conducted daily, in particular, for Brent oil from the North Sea (spot market) or in the form of forward contracts (futures) for 1000 barrels of Brent oil with a maturity of 3 months, 1 year or 2 years.

FXFellow Broker Safety

"Futures" are financial instruments used to predict future changes in the underlying asset

"Futures" are financial instruments used to predict future changes in the underlying asset (stocks, stock index, etc.): You buy or sell a certain amount of this underlying asset at maturity and at a predetermined price. But futures are very risky speculative products.

FXFellow Broker Safety

Gh0stly Gh0sts-the first omnichain NFT collection

In recent days, the premiere of the unique collection NFT: gh0stly gh0sts. Although there is little interest in the project at the moment (the Twitter profile @gh0stlygh0sts is watched by less than 12,000 people), it can already be said that this is something groundbreaking.

FXFellow Broker Safety

What is a factoring contract and what elements should I pay attention to?

Factoring is a financial service that few people have heard of until recently, but now it is gaining popularity among entrepreneurs every year. This is one of the most effective ways to maintain the financial liquidity of the company and ensure its free access to capital.

FXFellow Broker Safety

This article, first of all, will be useful for beginners in the Forex market.

Many newcomers ask such questions: "How to start trading on the Forex currency market, where to do it, the first steps in trading" and other similar questions.