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How To Choose The Best Forex Broker

Even though Forex broker scams are less common nowadays, they still exist. So, as always, it is better to be safe than sorry.

Before you actually choose a Forex broker, you need to take some steps that will ensure you that you are making business with a reputable company.

#1: Since you probably already have a list of the best Forex brokers (according to your search), the first thing you need to do is to find online reviews about them. However, not all reviews are the same. You will find reviews where the website owner is trying to get his affiliate commission when you open an account with that specific broker, there are others from people who made bad trading decisions and are now blaming the broker, and there are even reviews from brokers that appear under individual names.

#2: Your list is probably decreasing in size which is a good thing. So, now, you need to find out if any of the Forex brokers that are still on your list have any outstanding legal actions against them.

#3: Within your search, you will probably find many people complaining about numerous things. One of the red flags that you really need to spot is if any of these things include difficulty in withdrawing funds. If you find someone complaining about it, try to reach out the user and ask him about the entire situation.

#4: When it is time to finally open your account, make sure that you print all the contracts that you need to sign and read them carefully. Some of the things that you need to be particularly careful about is about bonuses for opening an account as well as withdraws. In case you take a monetary bonus that is added to your trading account when you open your account with the broker, make sure to know what happens if you lose part of that money and want to withdraw all your money from the account. Some companies will discount the bonus they offered in the first place and will only allow you to withdraw the one that was actually yours (minus the loss you had).

#5: If you finally found a forex broker that seems to be a good, you should open a mini account or a very small account with them first. Just trade a bit with it for about a month or so and then try to make a withdrawal. If everything works well, you can then deposit the amount you were first considering. In case they keep delaying the withdrawal, you know you are dealing with a dishonest broker. So, if this happens, just spread the word about them and their service. Tell others about your personal experience.

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70 Trades Broker Review

70 Trades is a fairly recent broker that is owned by Commodius FX Ltd., which is registered as a broker in Vanuatu. And this is exactly one of the few things we don’t like about this broker.

In case you don’t know, Vanuatu is a small off-shore paradise and has been one of the favorite places for dishonest Forex brokers to open their doors. Please notice we are not saying they are a fraud as well as we are not saying every company registered in Vanuatu is a fraud. However, we advise you to pay attention to this fact: they only needed $2,000 to open a new brokerage there. So, this kind of lack of strictness ends up affecting the entire island reputation as well as all the legit companies based there. But this doesn’t mean that 70 Trades is a scam broker.

When you are looking for a good Forex broker, you need to make sure the one that you choose complies with the regulations. For example, in Australia, when you want to register a broker, you need to register it under the Australian ASIC. This will make sure that your client’s funds will be protected since the broker needs to have them in segregated accounts. Plus, you do need a lot more than just $2,000 to open your own broker in Australia. You actually need AUD 1 million in capital holdings just as a sign of good will.

So, what does 70 Trades offer you? What do you need to open an account with them?

– Minimum Initial Deposit:

Every broker usually has a minimum initial deposit and 70 Trades is no different. Their minimum is $200. When you compare it with other Forex brokers, they are asking more to open an account with them.

– Average Commissions & Spreads:

When you trade Forex using 70 Trades you will have fixed spreads. As you know, one of the currency pairs that usually has a smaller spread is the EUR/USD since it is the one that has more transactions. 70 Trades has a 3 pips spread for the EUR/USD which is more than most other Forex brokers. However, they have the advantage of having fixed spreads. So, when there is volatility, you’ll find easier to execute your orders.

– Leverage:

This is usually one of the features that generally attracts most Forex traders. At 70 Trades, you have a 1:200 leverage which is the average between Forex brokers.

– Trading Platforms:

If you already trade Forex for some time and you’re used to using MetaTrader, you’re going to miss it a bit. However, 70 Trades has their own trading platform – the PROfit trading platform. Even though you might feel a bit strange, the platform is highly intuitive and easy to use. So, you won’t have any problems adapting to it.

– Payment Methods:

In what concerns to payment methods, 70 Trades allows you to use a few. They include credit and debit cards, typical bank transfer, and e-wallets like Weboney, Netteller, and Skrill.

Even though there are some things we would prefer to be different like their registration country, the fact is that 70 Trades offers you a lot of features including a great trading platform.

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Do You Want To Start Trading? Read The Instructions

Many people are attracted to trading. After all, it’s one of the few ways that you have to belong or to be a part of a huge company. Even if you only have money to buy 1 Apple share, you’re still considered a shareholder. And this is something that not everyone can say. However, trading, either stocks, futures, Forex, or any other financial instrument, is not as easy as you may think and each one of these particular markets has their own specifications and terminologies. When you’re a good stock trader it doesn’t automatically mean that you’ll be an awesome Forex trader or a great commodities trader.

Are You Considering Trading Online?

When you’re serious about trading online, the first thing you need to decide is about what you’re going to trade. You can choose between stocks, futures, Forex, CFDs, options, and so many other financial instruments.

Usually, when people refer to trading they are usually referring to stocks. If this is your case, you should go for it. You need to make sure that you read and understand all the terminology behind this specific financial market and then decide the strategy you’re going to use to trade. You can either choose between fundamental analysis or technical analysis or use both. You can prefer the quick trades that are usually riskier but tend to offer higher returns like day trading, or you may simply want to give your savings a chance to make money on their own. In this case, you’re going to opt for a longer-term strategy, more specifically, based on stocks that pay high and consistent dividends.

As you can see, it’s not only about making the decision about the market that you’re going to trade on. It’s a mix of decisions that should be based on your personal preferences and on your own personality as well. If you like to risk, go ahead for day trading. But if you’re a more conservative person, then you should rather choose swing trading or an investment (long-term) strategy.

What About Forex?

The Forex market is not new anymore. However, due to the low amount that you’re required to open an account with a broker, it’s usually one of the preferred choices among new traders. This combined with the fact that it is open 24 hours a day, gives you a lot of flexibility to trade, even if you have a full-time job.

There’s no question that the Forex market is attractive. The leverage (although it was better a few years ago it’s still better than the stock market, for example), the margin, there are countless benefits of trading this market.

However, you need to be careful with one thing. What may seem an advantage in the first place, may not work as well when you’re trading by yourself. Let’s take the fact that the market is open 24 hours a day. If you already got the chance to open a chart for any specific pair, you’ll notice that despite there are times within the day that the currency pair has a huge transactions volume, on other occasions it just remains almost flat. The fact is that when you’re trading the Forex market, you’ll need to look for the time where the currency pairs you want to trade have more volatility. This is how you’re going to win money trading the Forex market. And this schedule may not be compatible if you work and can’t access your broker platform during the day.

So, What’s My Final Advice?

My advice is that you need to choose a financial instrument that you feel comfortable with. Despite the disadvantages that I focused above about Forex, you can place automatic orders that will be filled if the price of the currency pair you are trading reach a determined price. So, you’ll still be in control, at least, in some part.

In what concerns stocks, there’s a lot to say about them. You need to think about using or not using indicators, which ones, the kind of orders you’re going to place, among so many other things.

The thing is that there’s not a perfect market. The best market is the one that you feel most comfortable trading on.

Scams: It Pays Off To Be Alert

Unfortunately, there are many scams out there. Both on the broker’s side as well as on the strategies people try to sell you as amazing and that will only make you lose money.

Make sure that you do a good due diligence before you open an account with a broker. And in what relates to any possible service that can provide you with signals for the best stocks, commodities, or currency pairs, make sure to test them on paper first. Don’t commit your hard-earned money without even knowing how good this company is.


Author: Editorial staff of 70 trades reviews blogĀ