Broker Check Before You Start: Investor’s Checklist

💸  Starting to invest is a great idea. Potentially profitable, intellectually exciting… and, unfortunately, full of traps. One of the biggest: choosing an unreliable broker. To avoid handing your money over to scammers or just clueless operators, here’s a short but powerful checklist. Go through it before you hit “Open Account.”

1. License and regulation

• Your broker should be licensed in the jurisdiction where it operates.

• Check the regulator: in Poland – KNF, in Germany – BaFin, in France – AMF, in the US – SEC and FINRA, etc.

• Make sure the company is on the official registry, not just “heard somewhere it’s legit.”

⚠️ If the license is from exotic islands (Belize, Vanuatu) – big red flag.

2. Reviews and reputation

• Read real user reviews on independent forums – not just the broker’s own website.
• Google it: “[broker name] complaints,” “[broker name] scam.”
• Look out for recurring issues like withdrawal problems or account freezes.

3. Transparency of terms

• What fees does the broker charge? Spread? Inactivity fees?
• Any hidden costs like withdrawal or maintenance fees?
• What happens to your money if the broker goes bankrupt?

💡 A reliable broker clearly lists this on their website – not in fine print in Clause 73.

4. Platform reliability

• Test the trading terminal (a demo account is your friend).
• Is the interface user-friendly? Does it lag during heavy trading?
• Is there a mobile app, and does it work properly?

5. Customer support

• Try asking a question via chat or phone.
• Do they respond quickly and professionally?
• Is support available in your language?

6. Segregation of funds

• Are your funds stored separately from the broker’s own money? Very important.
• Check if the broker is part of a deposit insurance or compensation scheme.

7. Realistic promises

• Does the broker promise “100% monthly profit”?
• Say “we cover all the risk for you”?
• Call you constantly to persuade you to invest?

🚨 Run. That’s not a broker, that’s a sales illusionist.

Final word:

Checking a broker isn’t paranoia – it’s just smart. Better to spend one evening reading the terms than months chasing lost funds. As the saying goes, “Better to double-check than say goodbye to your cash.”