Here are some types of brokers that you should avoid:
- False Brokers. This type of forex broker is usually able to provide trading services for clients who register, especially when they are just launching and boosting many promotions to attract clients. It's just that fake brokers don't have a clear identity. They do not reveal their true identity and tend to falsify information such as office address, regulations, phone numbers, etc.
- MLM (Multi-Level Marketing) Brokers. This broker does not make money by spreads and commissions from their clients' trades. Instead, they promise investment programs with consistent and fantastic returns. They will encourage their clients to invite as many new members as possible as their downlines. Deposits from these new clients are the source of their income.
- Copycat Brokers. The appearance of this type of forex broker is no joke because it dares to resemble official brokers that already existed. So it can be said that scam brokers deliberately imitate other brokers who are already popular in order to attract many clients and take their deposit money.
- Problematic Brokers. These brokers are not exactly frauds, but they can't provide a good service to their clients. Some symptoms of a problematic broker areed withdrawals, bad customer service, inconsistent terms and conditions, negative slippages and requotes that happen too often, stop-loss hunting, and other technical problems that should not happen so frequently.