The forex margin trading is a very speculative financial product. The leverage would affect equally to both profit and loss. It is suitable only for the investors who expect higher returns against higher risks. Investors should not make use of the money necessary for the daily life.
It is a fact that a number of forex brokers are increasing who explains in the wrong way, "it is just similar to the foreign currency deposit", "it is sure to take profit" or "the swap points between two foreign currencies should yield several times as much as lower coupon". Never be cheated by such sales talks. Doubt such forex brokers as would cheat you.
Here, we are going to show you how to distinguish bad forex brokers.
- Brokers to cheat the customers with sales talk, "You must get much money" as offering definitive judgment.
- Brokers not to explain enough for the customers to comprehend the risks and characteristics.
- Brokers with so much aggressive attitude.