Forex trading is extremely popular in Nigeria: some experts claim that the country may have up to 300 thousand active traders. Of course, these people create a considerable demand for financial services, and there are dozens of brokers ready to provide them. However, some of these companies just want to steal your money and disappear, so you need to know how to spot unreliable brokers. In this article, we tell you about several signs that can help you spot a scammer.

Forex in Nigeria

Forex trading is perfectly legal in Nigeria. Many local traders consider it one of the most effective ways to earn significant money, and some of them are ready to invest in almost any company that promises high returns. While the market is regulated by the Central Bank of Nigeria, the regulator doesn’t seem to catch and ban scammers quickly enough, so there’s always a chance to become a victim of a scam and lose your money.

However, the blacklist of scammers made by the regulator is a good place to start. While it lists only a limited number of major scammers on the Forex market, make sure to check it out before choosing an unknown broker. Companies get added to the list for repeated law violations, including postponing or blocking withdrawals, operating without a license, stealing money from accounts, and so on. But if you can’t find a broker on the list, that doesn’t guarantee anything. Let’s see how you can spot a scam.

How to spot a scam

Spotting a Forex scam Nigeria is easy if you know where to look. First of all, check the license of the broker. It should be legally registered to work in the country, and it’s great if the company is licensed by reputable foreign regulators like FCA or ASIC. Try to find any information about foreign offices of the broker. If it’s relatively old, works across several countries, and doesn’t have any problems with financial authorities, that’s a good sign.

Another crucial thing to check is the broker’s website. If it lacks any long-term development plans or specifications, you should be wary. When the only thing described in detail is your profits, the broker almost definitely just wants to lure you with promises to steal your funds. Don’t believe any promises of extreme profitability or zero risks: trading is always risky. And don’t forget to read reviews of other users, they may help you understand whether the broker is really that reliable or not.

Read more interesting information on Twitter Oleg Tkachenko.

By Manali