How to Spot, and Avoid a Scam Broker?

Getting into the trade business is tough, you can’t do everything by yourself.  You need to hire help, someone who knows the energy and

When you search for a broker, make sure you do your research and verify whether the broker is legitimate or not. Following, we ware giving you a guide that helps you avoid frauds in the financial industry.

the difference between facts and fiction. For example, if you find forum posts, blog posts and bad reviews about a broker, it means they cost the trader money.

However, whenever a trader leaves a bad review of a broker, it always doesn’t mean the broker is at fault. Maybe the trader failed because of his bad practices?

A common complaint of traders is the broker was intentionally trying to cause loss by saying something like, “Just when I placed the trader, the market reversed,” or “the broker didn’t hunt for my positions.” These comments are common, and it may suggest the broker was not responsible for trader’s loss.

It is possible new traders fail to make money using a tried and tested plan. The issue with newbie traders is, they make trades based on psychology (how they feel about something), and take big risks.  We a novice enters a position; they let their emotions take charge whereas an experienced broker knows how to control his emotions. However, emotion is not always the case; sometimes the trader fails to understand market dynamics.

We are not saying the broker is always innocent, No, there are cases where the broker tries to profit on commissions while costing his client. They do choose to move quoted rates, and triggers stop orders when other broker rates are way lower.

One thing every trader should know is trading is not a zero-sum game, and brokers make a living from commissions. Their earning increases with higher volumes. So, find a broker who has long-term clients who regularly trade to make a profit, and learn to read Forex currency converter live rates.

Bad Communication

The real problem in a work relation surfaces when the communication between a trader and broker starts to break. If a trader doesn’t receive a quick and proper response from the broker, it raises suspicion. Vague information or avoiding communication is a major red flag.

It tells the broker is not looking out for the best interest of his client. Such issues should be quickly reserved. If there is a problem, the broker should tell the broker. Be helpful; it is a sign of health customer relation. The worst possibility is the trader can’t withdraw money from his account.

Lack of Research

Protect yourself against scammers in the first place. To do so, you must follow these steps:

  • Perform an online search and look for customer testimonials. It offers real insight as negative comments reveal unsettling truths about the trader
  • See if there are complaints registered against a broker not letting the trader withdrawing money. If there is any contact issue, contact the user if possible and ask them about their experience
  • Carefully read the fine print of the documents when you want to open an account. Incentives in the document can be used against you, especially when you want to withdraw your money. For example, if the trader deposits $10 and gets a $2 bonus, then the trader will lose money and attempt to withdraw the remaining funds. The broker can say they can’t let the trader withdraw bonus funds. So, read the fine print carefully, and understand contingencies for such case scenarios
  • If you are confident about a broker after this research, open a mini account for forex fundamental, technical and sentiment analysis and invest a small capital. Use it for a month and try to withdraw money. If everything goes well, you are safe to deposit more money. If you have issues, discuss it with the broker. If it fails, bring this to the broker. In case nothing works, make sure to leave a testimonial describing your horrible experience in detail

Is Your Broker Only Focused on Commission?

Brokers are paid in commissions for buying and selling securities. Therefore, they might fall for the temptation of effecting transactions to procure higher commission. It is better known as churning, and it’s a practice that costs the client.

Churning is a serious crime, and if found guilty, the broker can pay fine, lose his license, get suspended or dismissed.  For a churning to happen, the broker should have control over funds. They should be charged with guilty and have to pay.

How to Save Money in the Suburbs

For many, living in the city is the only way to go and they will preach about the restaurants, the museums, and even how they can live without a car.  Contrast this with common misconceptions about life in the suburbs – you need a car, its only strip mall after another, and it is more expensive.

But like most misconceptions, the accepted wisdom about life in the suburbs is not always correct.  For example, if you live close to a major city it is probably cheaper not to live in the city and this article will give you some tips on how to save money in the suburbs.

More Living Space

Without exception, the price of land in American cities is significantly more than it is in the suburbs.  This often means that those choosing to remain within the city line must pay more, a lot more, for housing.  This would explain many in New York or Boston need to live in postage stamp sized apartments or have 10 roommates just to afford the roof over their heads.

But this is not the case when you live in the suburbs.  The land is less expensive, and this means you can either buy a bigger house for the same that it would cost for that tiny city apartment, or you can save the money by getting a small place out of town.

The additional living space also means that you can have a proper yard and the air is cleaner.  This is a bonus for those who like running or cycling as there is often more space to enjoy these activities.

Just imagine if you were to live in a suburb around Seattle, this would mean that you don’t need to invest in long-term storage as you’ll have extra space in your house to store everything.

You Still Don’t Need a Car

Sure, there might be cases where a car can come in handy when living in the suburbs.  But the reality is that if you choose your suburban experience then you won’t really need a car.  This means looking for a community with good rail links to the nearest city and having a town center where you can easily shop for everything you need – even then your car rides a bike for your errands.

Following this approach, you not only save on your housing expenses, but you eliminate the need for car payments and car insurance – this can add up to thousands of dollars in savings every year.

If you do need a car from time-to-time, then look for a community with an Enterprise Car Rental or a similar company in town.   You would be surprised how many suburban towns have car rental options and, in some cases, they will pick you up and drop you off for no extra charge.

You Can Have a Garden

Imagine trying to have a full-fledged vegetable garden while living in the city?  Ok, it’s not impossible as some cities have shared spaces for gardening; but even when they do space tend to be at a premium.  Compare this with living in the suburbs where you can have your own backyard with enough space to plant as much as you want.

In addition, you could also set up a hothouse and this would allow you to grow your own herbs and vegetables year-round.  Just think how this would help you to save on groceries!

You’ll Cook

One thing about living in a city is that it is so easy to either go to a restaurant or to order delivery.  Not that you can’t do this when living in the suburbs, but generally there is less choice.

While some people might view this as a drawback, the reality is that having fewer restaurants around will force you to cook for yourself.  Not only will this save you money (the menus at most restaurants mark up their ingredients by four to five times) but it will help you to eat healthily and this will help you in the long run when it comes to medical expenses.

You Won’t Have to Pay for Private Schools

While we can argue the reasons why this happens, the fact is that most suburban school districts offer a better education compared to urban districts.  What this means for parents is that they don’t need to pay property taxes as well as school fees.  This could lead to saving thousands of dollars per year.

As you can see living in the suburbs can help you save money, the only thing left now is to make the move and enjoy the quiet nights in a home of your own.

 

Financial 3×5 Card to Book – All The Financial Info You Need

What if you could learn everything you need about finance in less than 10 minutes?

Well, according to University of Chicago professor Harold Pollard, everything that you need to know about money can fit on a simple 3×5 card.  Pollard was chatting with journalist Helaine Olen about how necessary most of the financial planning industry is when Olen challenged Pollard to put everything down on paper.  He did…and it went viral.  Pollard had since published an entire book with Olen that further discusses the card.

Why would this be important to you? Because instead of paying for a financial advisor this 3×5 card has all the information you’ll need.

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