How to check the reliability of a brokerage company. How to check a forex broker and choose a reliable place to work
What brokers transfer transactions to the interbank market? This moment is very important when choosing a company with which you are going to work in the currency market.
In Forex terminology, it is customary to call an interbank a worldwide network or a system in which financial institutions and banks trade currencies among themselves. This system allows banking institutions and financial institutions to maintain liquidity, as well as serve retail customers.
How to find out which brokers bring transactions to the interbank or market?
To find out which brokers transfer transactions to the interbank market, you should pay attention to their technology of providing clients with quotes. If we look at the issue globally, then all brokers by technologies for providing quotes are divided into 2 subtypes:
- Dealing Desk (DD) brokers, otherwise -
- and we are interested in: -.
Do market makers transfer traders' transactions to the interbank market?
So, Market makers provide their clients with "their" quotes. Here the system is such that the trader makes a request to open an order at the set price, and the broker forwards this request to his liquidity provider. Further, having received the answer, the broker (Market maker) "twists" the received quotes with its own benefit and then sends them to clients.
Clients of such brokers do not receive real market prices and therefore suffer from various manipulations.
As a rule, these brokers have fixed spreads, and your losses on transactions are direct income of the company. Conflict of interest on the face!
Why invest in Komodo cryptocurrency?
Do ECN brokers transfer traders' transactions to the interbank market?
The second type of brokers (ECN brokers) use STP and technology in their work, and provide clients with direct quotes from ECN platforms directly from liquidity providers. Here, traders' requests are sent to a kind of aggregator that selects the best option from the entire quote stream and then broadcasts it directly to the client.
The use of such technology enables the trader to receive the real market price.
Brokers who transfer transactions to the interbank market have no requotes, that is, there is no delay in order execution and various quotation manipulations are excluded. The earnings of such brokers are charged to traders for making transactions. So how do you know which brokers transfer transactions to the interbank market?
The main features of an ECN broker, that is, a broker that brings deals to the market, include:
the ability to gain access to well-known ECN platforms (IntegralFX, LavaFX, Currenex, 360T and others).Please note that today a lot of dealers say that they withdraw deals on Currenex, but they do not provide access to the platform itself. If you notice this, then the broker is deceiving its clients.
the ability to monitor Level II - using a window where absolutely everyone who participates in the system, from the largest financial companies to ordinary traders; the ability to change the quote with your own deal, placed within the spread, which will be visible to all clients of the broker; either before or after the transaction, you can see the counterparty.Some brokers that transfer transactions to the interbank market give access to ECN platforms through which you can trade, for example, with Bank of America, Duetsche Bank, UBS or Goldman Suchs. At the same time, all this is reflected in the quotes window (you can see which quote belongs to whom) and in the reporting;
no fixed spreads; broker's income - commissions from client transactions.Let us remind you once again that when choosing a company, one of the most critical stages is to find out whether the broker brings transactions to the interbank market, because if this moment is missed, then such a mistake will be very expensive in the future. That is why we suggest that you familiarize yourself with the list from which you will find out which brokers bring deals to the market.
TOP 6: list of brokers that withdraw transactions to the interbank market
TOP 1: Alpari is a trusted broker working at the interbank level
At the end of our list of brokers that bring deals to the open market is Alpari. This largest broker, providing Internet trading services since 1998, uses two business models - Standard and ECN, depending on what type of account the trader uses.
Standard model - for classic and cent accounts, transactions on the interbank market are displayed on the general positions of all traders, and the clearing itself is carried out internally. For this reason, trades are carried out using the Instant Execution protocol, that is, at streaming prices; accordingly, a requote may occur.
As for ECN accounts, client orders are processed automatically and transactions on the interbank market are withdrawn without brokerage participation using MetaTrader4 Bridge technology. In this case, trades are executed at market prices (Market Execution protocol), without requotes and instantly.
TOP 2: Amarkets company with a system for withdrawing transactions to the interbank market
The list of brokers that transfer transactions to the interbank market also includes Amarkets, also known in Russia and the CIS countries under the AForex brand.
For its clients, the company provides the widest choice of various trading instruments, ranging from currency pairs to CFD contracts, commodities, bonds and stocks.
For successful trading, the Amarkets broker offers its clients everything they need, paying particular attention to the high speed of order execution, as well as the accuracy of quotes. All this is possible due to the fact that the company provides direct access to the interbank market and does not conflict with traders.
TOP 3: brokerage company - RoboForex
The first in our list of brokers that bring deals to the open market is RoboForex. In its activities, the broker uses the classic STP business model.
According to this model, the company acts as a kind of intermediary between clients and liquidity providers, receiving part of the spread for this, so it is not interested in a conflict with its traders. On the contrary, it is beneficial for the broker when the client trades profitably and increases the volume of transactions.
TOP 4: FreshForex broker, with the withdrawal of transactions to the interbank level
The next company on the list of brokers that transfer transactions to the interbank market is FreshForex. On any of the types of broker accounts, there are no requirements regarding the minimum size of the deposit. Orders are executed using the Market Execution protocol, there is access to Swap Free accounts, and the use of trading robots is allowed.
Thanks to the use of the Smart Bridge Technology mechanism (risk hedging) and NDD technology, all transactions of the company's clients are displayed on the interbank market. At the same time, even those transactions with a volume of 0.01 lot or more are brought to the market. The result of all of the above is instant execution of your orders, no requotes and very low spreads.
TOP 5: Broker - Opening and its features of bringing deals to the market
This broker is part of the vast Otkritie financial group and as of 2015 had a volume of client transactions in the amount of over 18 trillion rubles.
Note that the company has the highest reliability rating "AAA" and has the following advantages:
- starting deposit from 1,000 rubles;
- availability of a personal investment advisor;
- trade orders can be given over the phone;
- prompt receipt of information about the state of the market thanks to the news feed "Interfax";
- instant execution of orders due to the withdrawal of the transaction to the interbank market and much more.
TOP 6: FxPro - STP broker that brings transactions to the interbank market
So, what other brokers bring client transactions to the interbank market? These companies include FxPro, a broker serving clients from more than 150 countries around the world. With this broker, you can trade using 5 types of instruments - stocks, currencies, metals, spot indexes and energy contracts.
The significant advantages of the broker are instant execution of transactions, the ability to trade simultaneously on a large number of world markets, as well as high-quality communication with the company's server.
Why do brokers need to display transactions on the interbank market?
Let's first analyze why you need to bring deals to the market at all. To begin with, the interbank level is needed in order to provide liquidity to transactions. If all transactions will be circulated only within a certain one, which is not engaged in either production or sales, then where will he get the funds to pay income to traders?
To put it simply, the interbank is a link between those who buy and sell currencies. Each of the participants in the interbank market has its own specific goals, and each of them receives its own benefit from the operations performed.
In this short article, we will tell you how to quickly check a broker for cleanliness. We will not consider the intricacies of trading conditions, the presence of special accounts, how to distinguish between different types of brokers and other complex things we have already sorted out in the article on how to choose a broker. There is no sense in bonuses and tempting conditions if the broker is not really a broker, but just a fraud.
You can also take the opportunity to check the broker in our check service. To do this, enter the name of the company and your details in the field below. We will check the company and send you the result.
An organization created solely for the purpose of luring and embezzling money, or, even worse, a solid company that does not hesitate to use gray and opaque schemes in its work. That is why it is so important to check a broker for fraud. You need to understand that if you do not check the broker for reliability, then you can lose your money, and this is at best. Most of the above points have already been described in the article.
Attraction methods.
It is very important to pay attention to the attraction methods used by the broker. You need to avoid cooperation if you have learned from the broker in one of the following ways:
- They call you. If they call you first, then they are scammers with a 99% probability. That is, if unknown people called you and offer you to make money on the stock exchange, then these are scammers.
- You have already lost money and brokers (already others) call you again and offer to return the money through them. This immediately speaks of a divorce. If the broker offers to return the money, this is a 100% divorce without any doubts. The divorce option can be spilled, we have collected the most popular similar divorces in a separate article - I will help you get your money back (actually not).
- You were looking for a job, you came for an interview, and you were told right off that you would need to deal with the triune. This is known as a consulting center + broker. Such a method of attracting is used by such fraudulent brokers as Grand Capital, NPBFX, Forex Optimum. This method of attraction consists in the fact that a person under various pretexts (as a rule, people come from vacancies in search of work) is invited to the office of such an organization, involved in trade, and then divorced.
- Courses, seminars and other training activities for trading. There is nothing wrong with learning to trade, and at the same time, if learning is just a cover, an excuse to get involved in a fraudulent project, then it is not difficult to guess how it will end. Therefore, it is very important to check who is going to teach you and why.
- You are persistently offered to buy the Grail of a trouble-free trading strategy or a non-draining trading robot. Accordingly, such should be avoided. A good trading robot will not be hammered into you for sure.
- Trust management. This is another indicator of a fraudulent organization.
That is, for verification, you just need to note for yourself how you found a broker.
Broker history.
Scammers tend to change their names frequently. Therefore, the small age of the broker's site and the history of the activity of requests for which it is searched is an important stage in checking the broker for reliability.
All fraudulent brokers work over the Internet, and on the Internet, little goes on unnoticed. Many services and programs track search activity, age of domain names and registration of phone numbers. This is where scammers come across, first of all. the name and sites are constantly changing, so all information about them is usually very fresh. The oldest are not more than three years old, although there are also real mastodons scammers like maximarkets. To check, do the following:
Let's check the registration date of the domain name on which the broker's website is located. To do this, go to the service - http://www.whois-service.ru and drive the broker's domain into the line. Like this:
Domain is a good indicator and at the same time you can buy a long-registered domain and the site will look old and solid. In order to find out when mentions of this broker appeared on the Internet at all, you need to use Yandex statistics. Yandex Wordstat unmistakably determines the time of occurrence and the frequency of search queries. To check, go to Yandex wordstat - https://wordstat.yandex.ru and drive in the name of the broker, in our case, for example, the broker thegreenfx is taken:
As you can see from the chart until April 2018, there is not a single mention of the broker.
Legality of work and licenses. How to check a broker for a license?
On the territory of the Russian Federation, there is only one body that officially legally issues licenses for carrying out brokerage activities - this is the Central Bank of the Russian Federation.
The license can be checked by typing in the name of the broker in a special section of the Central Bank of the Russian Federation - http://www.cbr.ru/finmarket/nfo/cat_ufr/.
If the broker is registered outside the Russian Federation, then the laws of the Russian Federation do not apply to him. Therefore, if you are tempted to become a client of a foreign broker, then remember that as soon as you open an account there, you will immediately leave the jurisdiction of the Russian Federation and your jurisdiction in general and move to a foreign jurisdiction, concluding an agreement with the broker on its terms. After all, citizens of the Russian Federation, and indeed the entire post-Soviet space, are not prohibited from using the services of foreign legal entities.
You voluntarily use the services of a foreign legal entity using the Internet, and no one will protect you.
Next are the organizations that have foreign regulation and licenses. The issue of foreign regulation is quite complex and is described separately in the article How to choose a broker. With any foreign regulation, you need to be doubly careful, since foreign law has many unexpected nuances, and the installation that they are getting better and more reliable there is nothing more than a delusion widespread in the Russian Federation and the countries of the post-Soviet space.
Profit guarantee.
It is very commonplace, but there are still offices that do not hesitate to promise risk-free trading and guaranteed income. If you see such promises, you are sure to be scammers. Also, enroll in scammers all who use courses and seminars offering guaranteed profitability.
If you checked the broker on all these points, and he failed on all of them, then before you is an ordinary classic fraudulent broker, a one-day company without details and identification marks.
Many traders try to delve into Forex trading, but as soon as they begin to understand this topic, the pressing question immediately arises, how not to fall into the network of fraudulent brokers.
Today on the network, you can stumble upon a lot of sites that provide, but not every information can be considered truthful and objective. So what can be done?
How to make sure of the reliability of a Forex broker serving the Russian market?
The more you invest and delve into the study of the rating, the less problems and disappointments await you in the future. Immediately, we will stipulate that not a single dealing center is insured against possible closure, so make sure that large amounts of funds do not remain on the exchange account.
The first step in choosing a broker will be to study the available offers in accordance with the following criteria:
Experience of the company. If you are considering young brokerage companies, keep in mind that their age must be at least five years old.And it is best to turn your attention to such well-known brands as Alpari and Alfa-Bank. Their rating and reliability have been tested by time and by numerous players who successfully trade on the Forex market in Russia.
and availability of a license. Unfortunately, not all dealing centers are focused on the Russian market, so you can literally count on your fingers those companies that have received for brokerage activities.In addition to the Central Bank, the reliability of the dealing center is ensured by the following regulatory organizations - CySEC, FSA, KROUFR, etc.
Important! You can check the broker's affiliation to a specific regulator on the official website of the checking organization. If you do not find the corresponding name in the database, then the brokerage company you have chosen is not trustworthy.
Many fraudulent firms are capable of forging any permits, so be careful!
The ability to open a demo and cent account. If you are just starting your Forex business, it would be more expedient to pay attention to such dealing centers as Alpari, A-Markets and RoboForex. Unfortunately, not all highly rated brokers are able to offer you to trade in cents. and spread. In this case, you should carefully calculate all the costs that you will incur when trading on the selected trading platform. Leverage size. Using this tool, each player relies only on himself, and works, which is called at his own peril and risk.With its help, you get the opportunity to win a larger amount, but this does not at all guarantee that, in the end, you will receive a profit. If you have a small deposit, then you should not use more than 1: 200 leverage.
Withdrawing funds from the exchange account. You can check the brokerage company according to this criterion by replenishing the deposit with a minimum amount.A less risky way to check is by analyzing reviews from other users and reviews from experienced traders. True, do not forget that comments can be written for money, so we recommend that you carefully read all the reviews in order to get the most specific information about the broker's work. When choosing a reliable broker for trading in Russia, you need to give preference to those firms that are as loyal to newbies as possible and provide really useful training materials.
When entering the market, be prepared for the fact that not all of your trades will close with a profit. If you approach the matter wisely, without rushing, then these costs will not bring you significant harm. Negative experience will give you the opportunity to take into account the mistakes made, which, ideally, would be better not to make in the future.
How do scam brokers work?
What is the Forex broker rating for and how to use it?
In fact, this tool can be a useful assistant in the analysis of trading floors. It will be better if for this you study several ratings at once, then the information you have collected will be more accurate.
The main advantage of such lists is that they are constantly updated and supplemented based on feedback from other users. That is why it can be considered objective.
Due to such flexibility in positions, some brokers can swap places rather quickly, actively competing with each other for leading positions. But, in fact, these changes do not change anything. If you take a close look at the TOP 10 best brokers, then over time you will understand that the participants in the rating remain the same without any significant shifts. Thus, very often you can see in the first place, then Alpari, then ForexClub.
In terms of reliability, the following rating can be taken as a basis, compiled on the basis of universal criteria of brokerage companies:
However, you should not take this information as the ultimate truth. The rating of many international brokerage companies is displayed in numerical and percentage terms, as well as in the form of abbreviations, where the AAA designation means the highest level of reliability of a dealing center.
If you have decided to try yourself in Forex trading in Russia, then we advise you to choose representative offices or branches directly located in your city. This step is dictated by the fact that you can personally conclude an agreement with a brokerage company, as well as check its attitude towards clients on your own experience. Reliable and serious dealing centers, very closely monitor the quality of service and the level of professionalism of their staff, so any manifestations of rudeness and rudeness in this case are unacceptable.
What should you pay attention to when studying the rating of a brokerage company in the Forex market?
Answering the question of how to make sure of the broker's reliability, one more important criterion of assessment should be noted - the efficiency of the technical support.
Forex is a fairly dynamic market, therefore, the specialists of the trading platform must solve any questions of clients very quickly and efficiently. It is extremely important to check not only how quickly the support operator answers you, but also how exactly he communicates with the site users.
True, the following point should be taken into account here: communication with clients who have not yet registered on the exchange often takes place in a more favorable manner, since the main task of any broker is to attract players and receive commissions.
If you decide to trade on popular currency pairs, then in this case you need to consider the offers of those companies that offer their clients small spreads. Thanks to the latter, the player's profit will become noticeably higher.
- Forex4you
When it comes to risky trading methods, in this case, trading conditions and their benefits in case of winning play a huge role. It should be borne in mind that scalping (making a deal on a short-term "jump") is not quite a suitable trading strategy for novice traders.
But with some trading experience, you can come back to this question using the following rating:
- Amarkets
- Alpari
- InstaForex
- FxPro
- Forex4you
Selection of Forex brokers providing trading in Russia through advisors
Forex trading with advisors is ideal for those players who cannot constantly monitor the chart and its movement. The main advantage of using a robot is that the human factor is literally reduced to zero, so you do not need to be a professional trader in order to receive stable profits on your speculations.
But still, let's make a reservation that some control over the trading process will help you avoid large “drawdowns” and large financial losses due to incorrect program settings or its malfunctions.
- Forex4you
- Amarkets
- FxPro
When reading reviews from other users, take into account the fact that each trader prefers to praise the brokerage company that is "closer to the body." If the user is satisfied with everything in the work of a dealing center, then, as a rule, he does not have any motivation to write about the work of a brokerage company. But as soon as the latter stumbles at least once, customers will immediately "cover" the Internet space with negativity and reproaches.
For example, during peak periods, technical support specialists of even the most reliable brokers cannot cope with the growing flow of users, which is why the response time to a client's question can stretch for several hours or days. Therefore, when deciding how to determine the reliability (rating) of a broker company, you should comprehensively approach the collection and analysis of the information received and, if possible, get a single picture of the current market situation, taking into account its features and the latest news.
How to choose a broker?
Many who have tried their hand at Forex at least once note that trading on it is extremely unstable and characterized by significant risks.
Because of this, most inexperienced traders begin to negatively treat all Forex exchanges, calling them nothing more than "kitchen". In this article, we will try to find out how to distinguish a normal broker from a scammer.
What are the groups of fraudulent brokers?
Let's not deny that many brokerage companies are completely different from what they say they are.
For clarity, let's divide them into 2 main groups:
"". The most common form of dealing centers that prefer to make money on the losses of their clients. Note that completely legal brokers who act as an intermediary without withdrawing their users' money outside the trading floor can fall under this definition.So how do you define real "cuisine"?
First of all, you should pay attention to the reviews of other users and carefully study the issue of withdrawing funds from the account. If most of them indicate problems in receiving money, then it is better not to contact such a broker.
Financial Pyramide. This structure is considered a more dangerous fraudulent scheme than the aforementioned "kitchen". The main task of such fly-by-night companies is to attract as many clients as possible by offering them a “unique” product, and after that the company disappears before our eyes like a “soap bubble” and it becomes impossible to receive their funds as compensation.Now you have a completely logical question: how to find out that this or that dealing center is a fraudster. Let's highlight a few striking features.
How to distinguish a normal broker from a "kitchen"? Several signs by which you can recognize a fraudulent broker
And as an example, let's list a few signs by which we understand, from the "kitchen":
The first sign of “kitchen” is the dealer's bet on the inexperience of a novice player. This is especially true for newly emerging brokers. Wanting to "promote" their trading floor, they usually promise "mountains of gold" to newcomers - a stable job, a steady income, huge profits.In such cases, you just need to remember that the Forex market, at times, does not spare both beginners and professional traders. Everyone is at risk. At first, it is very important not to lose the entire deposit, and as for profit, at first it should be the last thing you care about.
Actively attracting inexperienced Forex traders. Even on legal exchanges, newcomers who have never traded Forex in their life are more likely to "drain" their deposit by choosing the wrong tariff or hoping at random.If they call you on the phone and begin to actively offer brokerage services, then be sure that in this case they want to "cheat" you for money. do not engage in "cold" calls and the purchase of telephone bases.
Organization of simple and unique courses. Forex trading does not have a magic strategy in which the trader will always receive a guaranteed profit. As a rule, such training materials either contain some generally known principles, or do not imply further development. Thus, the "kitchen" only creates an appearance. Lack of a referral program based on the payment of the interest rate of the commissions received. Any other accrual scheme will be considered fraudulent. In addition, kitchen brokers very often offer clients a flat rate. There is no specificity about liquidity providers.Asking the question of how to distinguish a normal broker from a “kitchen”, remember that such organizations are of great danger, first of all, to traders, and only after to investors. In the latter case, investors choose for themselves a reliable player who prefers to work only with trusted brokers. However, this does not mean at all that investors should not know how to define the "kitchen" in the Forex market. Extra security won't hurt anyway.
Real-life examples of fraud brokers
How to identify a fraudulent scheme of brokers in the forex market?
This phenomenon is quite rare on Forex, however, despite this, modern scammers are quite ingenious in their machinations, that even experienced traders often fall for skillfully hidden deception. Any broker whose assets are significantly lower than their obligations should be considered a potential financial pyramid.
When an insured event occurs, debts are unlikely to be paid to all those affected. Until a controversial situation arises, the company's clients may not even guess that they are working as a far from honest dealing center.
Let's highlight a few more signs, thanks to which you will learn how to distinguish a normal broker from a fraudster:
Firms with similar names like u. Young organizations without proper experience will gain a foothold in the current market. That is why pyramid schemes prefer to use brand awareness to their advantage, replacing only one letter in the name of a well-known trading platform. Creation of a unique product promising guaranteed success and huge profits. In fact, this proposal is nothing special and outstanding.The profit for the first clients is calculated from the funds received from new depositors. The success of the "pioneers" is a kind of confirmation that you will not be "thrown". However, this is only necessary in order to "blur" the eyes of the rest of the participants in the fraudulent scheme and, with their help, attract new depositors.
The promise of guaranteed profits in the absence of restrictions on contributions. The main feature of the pyramid scheme is the offer of “free cheese in a mousetrap”.Any form of such promises should alert the novice trader. If a broker starts giving out cash bonuses for no good reason and at the same time makes it clear to the trader that he does not bear absolutely any risks, then this indicates that the organization has a financial pyramid structure.
Unfortunately, modern brokerage companies can show signs of fraudulent firms. For this reason, it is better not to take risks and turn to trusted firms that are part of such prestigious associations as the CFTC or NFA. Fraudsters, with all their might, will not be able to get into the above organizations.
Several important points for the analysis of Forex brokers
Starting your path as a Forex trader, you should not be prejudiced against this market, however, you should not rely on fabulous profits.
Trading is extremely risky, but with a well-built strategy, you will be able to minimize your losses, and after gaining some experience, you will gain a long-awaited plus.
If you want to find out if your broker is a “kitchen” or a scammer, then first of all we advise you to pay attention to its regulation. For this, several important parameters must be taken into account:
- Registration of a brokerage company on the regulator's website. All international organizations enter information about in their databases, and it is of a completely public nature.
- The type of activity of the dealing center must comply with the permissive document it has.
- The validity period of the license must be current at the time of the check.
Do not start working with a brokerage company until you are convinced of its reliability. Remember that scammers are also improving their skills and can forge any document. It also doesn't hurt to talk to more experienced traders who have already had real experience with the chosen firm.
As for the reviews of Internet users, they are often biased, as they can be of a custom-made nature. At specialized forums, the question has been raised more than once whether it is worth starting to work with young companies or is it better to give preference to the “old-timers” of Forex.
It is difficult to say which path will be correct in this case, but if you want to try to work with a recently appeared broker, then make sure that the company is at least 5 years old.
Many traders are very skeptical about banks, considering them, if not a financial pyramid, then certainly a typical "kitchen". The numerous cases of bankruptcy of financial institutions due to the distribution of a large number of fictitious loans add fuel to the fire. In this case, it is necessary to carry out a thorough analysis of the existing banks, their level of stability in the market, etc.
In conclusion, there are a few more criteria by which you can distinguish a normal broker from a fraudster:
Inflated spreads and commissions. Before entering a trade with a significant amount, make calculations, as a result of which you can calculate at least an approximate size of the spread and assess its adequacy. The same should be done with swaps if you are used to keeping trades open for quite some time. Broker management of quotes and stops. Of course, reliable dealing centers can also sin with this, but if you notice repeated influence on the market behind your brokerage company, then this is another reason to think about changing the dealing center. Systematic interruptions in the operation of the terminal. Any trading platform can fail for a while, but if something like this happens all the time, then it would be better to refuse such an unprofitable cooperation.How to define Forex cuisine?
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