Broker Clones

Brokers often get cloned, especially if they are good and reputable brokers. A broker clone is a broker who has copied another reputable broker and is looking to scam its clients. They do this by copying their name, logo, practices and legal requirements. They will change things slightly so that clients wont notice the difference and think its the original broker. These scammers make a lot of money by doing this and often disappear after about 1 to 2 years in practice. This happens a lot in South Africa, because there is little regulatory services for brokers. This leaves South African traders prone to get scammed a lot easier, with no defence.

These clones make their money by scamming clients who think their broker is an original trustworthy broker, when in fact it is just another scam. These clones make their money by charging high spreads, feeding fake information and betting against their clients. These are only a few ways that they make money, but it is extremely important to know this because clients wouldn't really know this unless they look for these things. It is very hard to notice these things, as you would have to sign up with another trustworthy broker to fully understand the differences in spreads, information and winning trades. Another red flag would be when brokers give their clients signals. Some brokers are legit and actually give correct signals, whilst the scammers only give signals so they could take the other side of the bet and make money from their clients losses. Other ways these brokers make money is by scamming their clients outright. Traders have stories where they cannot with draw their profits. Other issues would be brokers closing trades without warnings, allowing their clients to lose money. It is crucial that traders vet their brokers properly before starting to trade with them.

Here are five steps that may help in researching a broker:

1. Regulatory Compliance: It is important to know with which organisations are the brokers regulated with. Make sure they are trust worthy and they are regulated by more than one.

2. Account Features: Make sure you understand which features are offered and if those are the best features for your specific needs.

3. Currency pairs offered: It is pointless opening an account with a broker if they do not offer your desired currency pairs, make sure they have what you are looking for.

4. Customer Service: It is important that you have somewhere to contact if something goes wrong. Most people hope that nothing will go wrong, but more often than not you will encounter problems.

5. Trading Platform: Often traders buy tools to help them trade, just to find out they are not compatible with their trading platform. Make sure your trading platform, broker and trading plan are in sync.

By following the steps above correctly, traders will have a better chance not getting caught by scams. These are not all the steps that should be taken, traders can add or subtract as they see fit. Another step that could be vital in preventing scams is using a Forex inquiry app called WikiFX. Traders can use this app as part of the verification process of brokers. Traders can search and review brokers from all around the world. It is a very useful tool when fishing out clones and scams.