When it comes to a scam brokers tend to be lacking in a particularly important component like customer service. It is for these reasons that review sites for this satisfied customers might comment poorly anywhere and everywhere they can online. Before you settle down with the broker to handle all of your money, it is important that you understand what makes a good broker and what makes it bad broker. You need to understand what common practices or problems, even what tricks might cause particular companies to be considered good or bad.
What Makes A Bad Broker?
So what makes bad brokers stand out? Disreputable behavior and failure to provide exactly what they claim they will provide. A bad broker is one which doesn’t offer the customer service one would expect a financial institution to offer. When you are reviewing different brokers, you should always make it a point to try out there live chat service for place a phone call with questions that you want answered. You can always have a list of questions the answers to which you already know. This will help you to verify how accurate and well informed the customer service staff is.
Some brokers who are not nearly as popular as others might have earned such a reputation simply because their customer service doesn’t have a phone number so your only option is email or their customer service does have a phone number but it charges you an exorbitant fee and has a long waiting time. In other cases they might have a comprehensive option for customer service contact methods but the agents in question have little to no knowledge about any trade questions put forth.
In other cases people consider brokers to be “bad” because they simply don’t offer the things that traders want. Some traders might demand educational tools for resources, trading strategies, a feasible platform that is compatible with their computer, and these things might not be an option with different providers. Good brokers will have terms and conditions which are easily understood. Bad brokers and blacklisted brokers might not have easily understood information about how the deposits work or what fees they have attached to their services. One of the bigger problems that people run into is questions about withdrawal options. There might be a broker with which you sign up whose withdrawal options do not work with your particular country, your banking system, or your deposit methods. Naturally being unable to get the money that you have earned with your trades is seriously problematic. For this reason it is imperative to search for complaints, fraudulent activity, and gamblers. Bonuses that are offered by different brokers might not be free and they could come with strings attached. One of the most well-known disadvantages is that your money is typically tied directly to the platform until a specific turnover has been reached. This turnover, or trading volume, is different from run broker to the next. It is quite normal in the industry for many brokers to have rather outrageous conditions associated with the bonuses and therefore block your money from withdrawal until you have reached the bonus trading volume. As such it is important to read over how their bonuses work so that you understand any and all restrictions before you make your deposit.
What Are Blacklisted Brokers?
Blacklisted brokers are considered those which have been written off by many organizations and individuals alike. In some cases, many users will turn to a particular broker and after having negative experiences mark them down as a blacklisted broker. This means that they will avoid doing any type of trade with that platform, avoid any affiliation with that company, and in some cases go above and beyond to warn people away. Other times, review websites will collectively go through the different comments and situations that traders have had with different brokers only to decide upon which ones should be used by newcomers and which ones should be avoided. Again, avoidance of particular brokers due to the process of blacklisting is often simply because they failed to provide the services that they should or the services they provide are subpar.
Many people apply the term “scam” to situations where you might think that you are getting more bang for your buck. Users might sign up for a service that offers a promotion only to find that that promotion has been taken away or it comes with strings. Sometimes people sign up with a promotional rate for the services only to have more charges placed on their account the more they make successful trades. Things like this can come off as a sort of scam. In other cases people might receive informational advertisements and they click on the links, reading through that there will be things like educational tools available for free demo accounts but when they go to sign up with the broker in question those educational tools are remedial at best, failed to provide the information that they claimed they would, don’t offer any strategies that are necessary for successful trading, and in some cases end up charging money for the demo account instead of providing it free to all members.
Overall, there are good brokers out there. Do not let this list of bad situations or bad brokers cause you to run away screaming from the industry itself. There are diamonds to be found among the rocks and for that reason, it is important to know which aspects you want to avoid and which ones are acceptable. Avoiding the scams and the bad brokers can help you to make the most of your investing situation. So, again, always look for those which have great customer service, the options and advantages that you prefer, in addition to a good platform and easy to use software.