Experiences with Plus500 – Scam or Not?

Plus500 is a well known Forex broker that attracts new players with a no deposit bonus of $ 25. That means that you register at Plus500 and your account will be credited with $ 25 without making a deposit. This is a very good offer for newbies although you can’t do that much with an amount this small. And on top of that: Plus500 is not known as the most reliable broker to say the least. There are a lot of scam accusations recently.
First of all, Plus500 seems not to be registered properly at the International Financial Services Commission.Forexpeacearmy doesn’t call Plus500 a scam and there are some larger sites that promote Plus500. This sounds good but there are plenty of scam complaints you should worry about:
One trader explains that the spread is always one Pip higher as it’s supposed to because Plus500 closes the position one Pip lower than the platform shows. Other trader claim that credit card information have been misused.
Obviously there are extraordinary complaints that accounts have been closed when traders were realizing earnings. Plus500 claims that they were trading against the TOCs and Plus500 has the right to close accounts when that’s the case. This is something you won’t hear about eToro.
Forexrealm calls Plus500 a scam. But you have to add that Forexrealm is only based on trader reviews and the sample size is not that big. So if 20 fake reviews from competitors appear it can be highly influencial.
Nevertheless most of the opinions go in one direction. There’s no real proof but lots of complaints that show that there’s something wrong with this broker. He very fact that Plus500 is not regulated by the IFSC is reason enough to be suspicious and better stick with another Forex broker. There are too many other options that you have to go with Plus500.

Easy-Forex – Scam or Not?

Easy-Forex is one of the larger Forex broker and its vision is to make FX trading as simple as possible for slightly intermediates and intermediate traders.
There’s a pretty famous dispute between an unsatisfied trader and Easy-Forex. The trader created a website to make others aware of ” Easy-Forex scam”. This can happen to every broker because every broker has traders that think the broker scams and if one of them wants to create a website there’s nothing you can do. Well, Easy-Forex thought there’s something they could do.
Some traders have not been happy with the Easy-Forex trading platform and losts were refunded and the initial deposit went back to the origins. This is pretty good and makes Easy-Forex look reliable. You can’t find this service with every other broker out there. There were also cases where a stop loss did not work and the broker made a refund. But it is a bit strange that spreads vary a lot. Other brokers are more constant when it comes to spreads.
Some traders don’t like the Easy-Forex support. These are some negative experiences but it’s not close to scam. Overall you can say that there are no reasons to call Easy-Forex a scam. Although there are some traders that don’t recommend Easy-Forex but that’s the case with ever single FX broker. If you pay too much attention to individual traders that call a broker a scam you can’t trade Forex anywhere.

FXOpen – reliable or scam?

Another Forex broker that also offers an ECN account and thus fits the needs of more professional traders is called FXOpen. FXOpen is pretty large and you can find a lot of feedback online. We already tested FXOpen here: FXOpen review and we made nothing but good experiences with this broker. It’s not even close to a scam, we can already say so.
But there are also bad opinions on FXOpen. Not everybody is happy with them. Although there’s no Forex broker that everybody likes but you also have to take a look at negative experiences to stay objective.
A few traders compalin that trades go in the wrong direction immediately after opening a position or that you get scammed when you make profit. At brokers like FXCM or Forex.com you will hear this rather often but pretty rarely about FXOpen. It’s pretty interesting that the traders that say so only make short reviews without any evidence. Complaints that FXOpen is not regulated and not a real company are simply not true.
FXOpen offers an open forum for traders. Obviously we can’t prove it but the forum looks pretty objective and there’s not a lot censorship going on. This makes FXOpen more reliable.
In summary you will also find negative experiences with FXOpen but it’s pretty evident that most of them come from competitors. The nicknames and the way they write are pretty similar. The Internet offers this opportunity. You just don’t have to pay too much attention to reviews that look suspicious.

INSTAFOREX SCAM?

INSTAFOREX SCAM
A lot of complaints come from trader that tried to abuse the Instaforex bonus program and got their account locked. This is a good reason and the broker has the right to do so. There’s no need to worry and you won’t have any issues if you don’t abuse their bonus program.
Some trader don’t like the fact that the Instaforex server seem to be a bit slowly if you try to scalpe. These are technical difficulties that occur rarely and not every trader experiences these problems. So no need to call Instaforex a scam.
All in all you have experiences that go both in the positive and negative direction. But you have to say that most of the negative reviews are not well founded. It’s not enough to call a forex broker a scam without the necessary evidence. So we can’t even call Instaforex not reliable until illegitmate practices are proven.

Forex

The foreign exchange market (forex, FX, or currency market) is a form of exchange for the global decentralized trading of international currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends. The foreign exchange market determines the relative values of different currencies.[1]

The foreign exchange market assists international trade and investment by enabling currency conversion. For example, it permits a business in the United States to import goods from the European Union member states especially Eurozone members and pay Euros, even though its income is in United States dollars. It also supports direct speculation in the value of currencies, and the carry trade, speculation on the change in interest rates in two currencies.[2]

In a typical foreign exchange transaction, a party purchases a quantity of one currency by paying a quantity of another currency. The modern foreign exchange market began forming during the 1970s after three decades of government restrictions on foreign exchange transactions (the Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's major industrial states after World War II), when countries gradually switched to floating exchange rates from the previous exchange rate regime, which remained fixed as per the Bretton Woods system.

The foreign exchange market is unique because of
its huge trading volume representing the largest asset class in the world leading to high liquidity;
its geographical dispersion;
its continuous operation: 24 hours a day except weekends, i.e. trading from 20:15 GMT on Sunday until 22:00 GMT Friday;
the variety of factors that affect exchange rates;
the low margins of relative profit compared with other markets of fixed income; and
the use of leverage to enhance profit and loss margins and with respect to account size.

As such, it has been referred to as the market closest to the ideal of perfect competition, notwithstanding currency intervention by central banks. According to the Bank for International Settlements,[3] as of April 2010, average daily turnover in global foreign exchange markets is estimated at $3.98 trillion, a growth of approximately 20% over the $3.21 trillion daily volume as of April 2007. Some firms specializing on foreign exchange market had put the average daily turnover in excess of US$4 trillion.[4]

The $3.98 trillion break-down is as follows:
$1.490 trillion in spot transactions
$475 billion in outright forwards
$1.765 trillion in foreign exchange swaps
$43 billion currency swaps
$207 billion in options and other products