Online trading is an activity that is of interest to a growing number of people. Faced with this craze, many operators are also appearing. So much so that it becomes very difficult for interested traders to recognize reliable brokers. Among the criteria that distinguish trustworthy brokers are their regulation, in particular that of the AMF or Autorité des Marchés Financiers. But is it really a guarantee that there will be no scams?
Are AMF-regulated brokers trustworthy?
The answer is YES. Online brokers who benefit from AMF regulation are generally serious and efficient. It is therefore strongly recommended to contact an operator who can provide proof of this type of approval. It should also be noted that this organization publishes a black list (periodically updated) of online brokers that is best avoided because it is unreliable and unsavoury. Relying on the AMF keeps you away from unscrupulous brokers who set up fraudulent offers to dishonestly extract money from their clients.
In any case, based on traders’ reviews, relying on brokers with AMF regulation limits (or even eliminates) the risk of being scammed. This is due to the fact that these operators are under the control of French legislation and operate legally in Europe. Then, these regulated brokers are required to guarantee the security as well as the payment of their clients’ earnings. You can find among our reviews brokers regulated by the AMF such as StockPair or BDSwiss.
Brokers to avoid
The manoeuvres of these operators are often the same: they promise huge profits to their traders, encouraging them to bet more and more. And when customers who accumulate earnings claim their due, they face a major problem: it is then difficult or even impossible to recover the money earned. Various reasons are then given to explain the lack of payment, each one as flawed as the next. These unsavoury brokers claim in particular that the conditions stipulated in the registration contract have not been respected.
Watch out for scams!
Despite the precautions taken, some traders still encounter brokers in bad faith. There are then various scams to know and to be wary of. In particular, attention must be paid to “false graphics”. These are curves and graphs that actually reveal incorrect information. The trader who relies on it may then make a very bad decision and may lose his capital. This is one more reason to rigorously verify that the broker the investor will rely on is reliable and trustworthy.
In addition to AMF regulation, there are other criteria that may favour the operator. Is it also regulated by CySEC? Does it hold the licence issued by this body? Does it act in accordance with the MiFID directive? In any case, you should never get started and it is wise to take the time to browse specialized forums and sites and discover complete reviews on a particular broker