Itís very difficult to recognize scamming brokerage companies because there isnít something like a black list. Itís very hard to collect evidence about illegal practices and you canít solely trust tradersí complaints without evidence. Occasionally the broker has the right to close a traders account because of illegal activities like money laundering. If the broker refuses to pay the Cash Out the trader sometimes feels cheated even-though it was the trader who cheated in the first place.

Here is a short checklist to avoid scamming brokers and dubious companies:

There has to be a contact page on the website where you can find the headquarters address. Your warning bells should ring if you canít find the ďcompaniesĒ address on the whole website.
Is the broker licensed and regulated? Where is the broker regulated? Donít trust any broker which doesnít provide information about regulation. If there are serious issues itís the regulating authority you have to go to.
The English website of most brokers is usually very good when it comes to language. If you speak another language you should check the website in this language too (if the broker operates in this country). If the website is translated very badly chances are good that the broker is just interested in more customers without offering good support.
Just type ďxxx broker scamĒ into Google. Itís a very good way to find complaints about a specific company. However, take care of the ďbad loosersĒ. Trading is tough and a lot of traders loose money because they simply canít beat the market. Many traders and many tradersí egos have to find someone to blame Ė this is usually the broker.