While there is no proper way one can manage to differentiate between a fraud and a properly honest broker, there are certain simple ways by which one can hedge any sort of risk associated with forex markets. First and foremost thing that a person must do in order to prevent a problem with brokerage is to avoid hiring a broker that is located in a country where strong laws do not regulate the forex activity through a broker. It is best if one signs up with a broker that is licensed by the government or international trading body which may enforce restriction on the broker from fledgling laws in order to dupe you. These two measures can be enough to safeguard your investment.