Forex(scam) vs. Futures

[quasi]

Greetings to all traders,
I have been following the site's invaluable inputs from people around the world for quite some time. All in an effort to find a broker as someone new that wants to enter the forex trading arena. I believe I had managed to spot some fake positives along with the horror stories and did all the due dilligence to the best of my abilities.
All in all I had found !1! broker that seemed to tick most if not all boxes of trust.

Very recently there have been raised some issues regarding this broker and the response of the Broker regarding certain shady figures involved in a multitude of companies surrounding this broker was inadequate if not completely absent. If I said that the result was disheartening it would be an understatement.

Just as I am about to quit this endeavour and leave the forum since I'm in no mood to lose my sleep over the period I place my money anywhere, nor would I be willing to test myriads of brokers with 500$ or less.

My question is this; to the best of your knowledge, is futures trading (or any other through an exchange) technically, the only scam-free way of trading? or are there are other scamming techniques employed by futures brokers similar to what I 've seen flooding this forum?

Thank you for reading
Best regards

 

[Pharaoh]

Futures brokers have a big advantage. They are exchange traded. This doesn't mean they can't scam you, but there are regulators watching all futures (currencies and everything else) very closely. The exchange itself also has an interest in keeping the trading honest.

Sive does mention futures brokers in this lesson of Forex Military School:

https://www.forexpeacearmy.com/forex-books/49/chapter-2-part-iii-there-is-quite-different-story-with-the-futures-market

 

[Pheniox123]

Greetings to all traders,
I have been following the site's invaluable inputs from people around the world for quite some time. All in an effort to find a broker as someone new that wants to enter the forex trading arena. I believe I had managed to spot some fake positives along with the horror stories and did all the due dilligence to the best of my abilities.
All in all I had found !1! broker that seemed to tick most if not all boxes of trust.

Very recently there have been raised some issues regarding this broker and the response of the Broker regarding certain shady figures involved in a multitude of companies surrounding this broker was inadequate if not completely absent. If I said that the result was disheartening it would be an understatement.

Just as I am about to quit this endeavour and leave the forum since I'm in no mood to lose my sleep over the period I place my money anywhere, nor would I be willing to test myriads of brokers with 500$ or less.

My question is this; to the best of your knowledge, is futures trading (or any other through an exchange) technically, the only scam-free way of trading? or are there are other scamming techniques employed by futures brokers similar to what I 've seen flooding this forum?

Thank you for reading
Best regards

Hi there,

Welcome to the forum.

Please don’t get disheartened by the shady brokers; as there are good brokers out there. They are rare but there are some.

You will find that majority of brokers will not bother you until a certain capital threshold is hit.

All I will say is be extra careful if you’re going to be trading with big capital; as that’s when even the semi-OK brokers become shady.

best of luck with what ever direction you take (forex /futures).

thanks

 

[quasi]

Extremely interesting link Pharaoh and very informative. I remember reading it but it has been some time ago. Certainly of benefit to read it again carefully, so thank you for this and for your reply!

Thanks a lot for the warm welcome Pheniox123. To be frank I believe they are extremely rare, if we are talking numbers there may be 1 or hardly 2 and them as well with their grey areas.

The better I am informed about Forex, the more I see that due to its structural flaw (in being decentralized) and not being adequately regulated (most are laughable, indifferent, offshore/or not regulatory bodies), infinite scamming opportunities arise from the blunt to the very sophisticated. Seems like reviews here and elsewhere is the only "threat" they face, which they frequently offset with some fake positive ones.

In the latter (sophisticated) category we can safely put the 1 or 2 "good ones" and that is for me a risk I cannot take. That is, doing business with someone who is in essence completely unregulated and that I can only hope for his integrity.

All I wanted was a brokerage to pass me a feed and execute my orders, but I guess this is too much to ask in Forex.

Sorry for the long post,
Best of luck to both of you and many thanks again.

Let me conclude this with a quote from the link that Pharaoh suggested for anyone reading this in the future.

"Commander in Pips: Well, personally, I like the futures market. Yes it has its own difficulties compared to spot FOREX, but it also has a great advantage – higher safety and relatively low trading expenses. If you like to trade currencies – you may trade on spot market first, but when you’ll get solid profit and your assets are becoming greater, I think that the best way to continue trading is to shift into currency futures. That’s my conclusion on the comparison of these two markets."

P.S.
As a last resort, If you would be willing to send me some suggestions over pm. I would be more than happy to check them out, though unlikely that I haven't already.

 

[Pharaoh]

I never recommend brokers. If I did, the broker would either go out of business or get caught in some huge scandal the next day. Plus, not all broker offerings are tailored to the needs of all clients.

For a futures broker, start with licensed and regulated brokers in your own country. If something does go wrong, you'll be in a much better position to fight for your rights.

If there aren't any in your country, then you want ones regulated in a major country. Also check to see if the exchange they trade on has the currencies you want to trade.

Good luck!

 

[pezz55]

I found it tough to find a broker too. It's fine to try these brokers on a demo account but when it comes to parting with your hard earnt cash it's a different story. I look at the reviews and filter through as you would do with Tripadvisor. It's quite easy to see fake reviews and some people just like to moan when their trading doesn't go to plan. Hope you have found one to suit you, it is a bit of a minefield out there.

 

[sebking1986]

I never recommend brokers. If I did, the broker would either go out of business or get caught in some huge scandal the next day. Plus, not all broker offerings are tailored to the needs of all clients.

For a futures broker, start with licensed and regulated brokers in your own country. If something does go wrong, you'll be in a much better position to fight for your rights.

If there aren't any in your country, then you want ones regulated in a major country. Also check to see if the exchange they trade on has the currencies you want to trade.

Good luck!

It is hard to recommend a broker as there are probably north of a thousand brokers and people will mainly give you the broker they use and haven't had issues with but that's not to say they are right for you. PLus as you say the law of the sod is that you recommend one and end up with egg on your face and then getting accused of leading people astray.

 

[Gazel]

The amount of scammers in the field of futures trading is quite small, because brokers who provide you with an opportunity to trade futures, are always severely regulated by special regulators which are liable for future and cryptocurrencies, hence we should claim that it's really like that. However, there is no any kind of guarantee that you won't be scammed by such a broker. In my opinion, scammers always play on inattentiveness of traders, and even such ones can turn out as scammers. Check everything properly before you start trading on a real account, because nobody's protected from being scammed.

 

[Androlen]

Come on, guys, scammers are everywhere and we shouldn't let our negative experience of dealing with one or several shady brokers influence our whole opinion about the market.
It is an open secret that despite the fact that forex market is getting more and more regulated, there is still huge room for scam and traders should be picky before choosing a broker. I don't know which features you paid attention to while choosing that broker, but probably, you need to reasses your procedure of picking up the broker which will suit you and which will not scam you. Futures market doesn't eliminate the scams among the brokers neither. I feel that the most secure market will be a stock market, but I doubt that you are interested in that.
Therefore, I think that you should choose the market which you are interested in and which assets you really love to trade. Scam is everywhere and you cannot get rid of it completely, you just have to create decent filter from scammers and that's it. Pay attention to the regulations of the broker, the history of operation, other traders' reviews. All of these things will help you make better decisions of choosing a broker.

 

[fxoday]

I think to choose a broker need to look for safe broker, usually, the first to become a consideration is regulation, the broker must be regulated, each jurisdiction usually has own regulation body, Australia known with ASIC regulation body, United Kingdom with FCA, etc, but besides regulation, also need to read trader reviews, good reviews among trader will raise confidence to choose its broker, and usually when trader already comfortable using service, they will stick there.