Have you ever wondered how to trade in the foreign exchange market safely? Are there any proven ways in which you may feel 100% protected from numerous fraudulent websites and scammers across the Internet? 

Ever since the appearance of the websites, there have been scammers and cybercriminals who were taking advantage of the online world to steal personal data from people and their money. Frauds are, unfortunately, the everyday reality in the world of the World Wide Web. 

These scammers also appear more and more in the forex market, known as a global marketplace for exchanging national currencies. Each day there are trillions of dollars changing hands on the Forex market. Thus, it’s no wonder that fraudsters are trying to get their “piece of the cake” on the market.

We’ve provided you with some of the most essential tips to protect yourself in the foreign exchange market and trade safely. 

Find a high-quality and regulated broker.

Perhaps an essential thing that will protect you as a trader on the Forex market is to find a trustworthy, high-quality and regulated broker. Regulation by relevant authorities such as FINRA in the U.S is essential if you wish to trade safely. 

As you may have assumed, a Forex broker stands for a financial service firm that enables Forex traders safe and straightforward access to a platform for exchanging currencies. Traders are able to buy and sell foreign currencies without any issues, thanks to a credible brokerage company. 

They are also referred to as Retail brokers or Currency exchange brokers. Even though there are plenty of Forex brokerage companies, you should do deep research and double-check all the information about your preferred broker before choosing one.

Why is a regulation of a brokerage firm so important?

The main reason for that is that the regulation of a Forex broker represents a specific warranty that you’re dealing with a 100% safe and legitimate company. A great majority of unregulated brokers are fraudulent and should be avoided if you want to protect yourself from scammers.

To check whether the financial regulatory authority regulates your preferred Forex broker, we recommend you to read brokerage reviews. 

What else can you find in brokerage reviews? 

Besides getting information regarding regulations, in relevant reviews, you are able to see information such as:

• Availability of trading platforms and currency pairs
• Status and type of a broker
• Language, country of origin
• Contact information
• Bonuses
• Minimum deposit
• Maximum leverage, etc. 

Make sure to check other characteristics of a broker.

Besides regulation, other indicators of high-quality and trustworthy Forex brokers are:

• 24-hour available customer service
• Relevant educational material for traders 
• Good account features such as demo accounts, various currency pairs, etc.
• Positive comments across brokerage forums 

Other tips for trading safely on the Forex market

Besides finding a reputable, trustworthy and regulated broker to trade safely, it’s most important to avoid risks by being informed of everyday situations on the worldwide geopolitical scene that directly affect price fluctuations. 

Learning and practising on a daily basis will make your trading experience much more enjoyable and more manageable and thus will enable you to increase your profits. The more you know and are informed about the novelties in the foreign exchange market, the safer your trading will be! Good luck!