It’s important to deal with a reputable firm.
These days it’s easy for a company to give the appearance
that they are legitimate. For example,
it’s not difficult to build a flashy website, buy a UK
domain name (ending in .co.uk) or redirect a
local phone number to an untraceable offshore location.
But a serious company will be authorised and regulated by
their local financial authority. In the
UK, that’s the Financial Services Authority (FSA).
Every regulated firm will be granted a licence number. This
licence number can be entered into
the FSA Register, which is available for free online. It
allows you to cross-check that a firm are
who they claim to be.
To become authorised in the first place, a firm must have an
approved product and sufficient
capital. Also background checks are run on the people and
their qualifications – which is a key
control.
Once regulated, a firm needs to submit regular information
to the FSA and comply with a wide
range of rules covering their dealings with customers,
information systems, promotional material
and financial position.
Frauds and scams won’t want to go down the regulated path
for obvious reasons.
Over the last few years there’s been an explosion in the
number of automated trading systems –
known as ‘forex robots’.
You know the ones - you download the software onto your
computer and after a few blinks and
flashes it spits out a trade signal. Most are useless, many
are scams.
Don’t get me wrong – the companies that promote these
products are masters of seduction. The
marketing message is powerful and cleverly appeals to the
masses.
But if you know what to look out for, you can spot them a
mile off.
0 comments :
Post a Comment