Fake Forex Brokers List Philippines: How To Detect A Scam

Forex trading becomes more and more popular internationally, and that’s actually not surprising: more people in various countries learn how you can use the opportunities provided by financial markets. It’s also true for the Philippines where Forex trading has been gaining notable momentum recently. But as the market attracts more novice traders, all kinds of scam projects and fake brokers become active. In this article, we explain where to find the list of known scams and how to detect them yourself.

Basic requirements

While Forex trading is perfectly legal in the Philippines, all brokers are controlled and regulated by the Bangko Sentral ng Pilipinas, the country’s main financial regulator. BSP requires each active broker to have either a national license or a license issued by another reputable regulator, and working without a license is strictly prohibited. All violators get added to the Forex scammer list maintained by BSP. It’s a great place to start when you’re trying to decide whether you should trust a certain broker or not.

It actually doesn’t matter why a company is in the fake Forex brokers list Philippines government has: if it’s there, don’t get involved. However, if some broker you’re planning to work with is not on the list, that doesn’t automatically mean it can be trusted. The regulator just can’t keep up with all the scams on the market, so you have to analyze them yourself. Luckily, bad brokers have distinct features that can be detected even without any special skills.

How to detect a scam

First of all, check the information about the licenses of a company you are interested in, but don’t just trust everything written on its website, make sure to verify that information. You should also check out other parts of the website: if the information about that project’s future, payment methods, or contacts is vague or outright missing, that’s a good reason to think twice before signing up. If the company isn’t telling you all the details, it probably has something to hide.

However, there’s another extreme: if a broker guarantees you profits, that’s also probably a scam. The thing is, Forex trading is inherently risky, so even the best broker in the world can’t be sure you won’t lose your money. You should be especially suspicious of companies that promise enormous returns in a short period of time. And don’t forget to read some reviews online, that may also prove useful.

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