Normal spreads between brokers would be around 2-3 pips but scammers would have spreads around 7-8 pips.<\/p>\n\n\n\n
Seven pips might not seem like a lot, but it does add up.<\/p>\n\n\n\n
Imagine each time a client trades, he has to pay a spread of 7 pips. Imagine if he takes just a few trades per day.<\/p>\n\n\n\n Multiply that by hundreds or even thousands of other clueless clients, you\u2019d be rakin\u2019 in the dough!<\/p>\n\n\n\n Another way is by stop hunting<\/strong>.<\/p>\n\n\n\n Remember, forex brokers know where clients place their stops.<\/p>\n\n\n\n Sometimes, they\u2019ll make a run for those stops, causing their clients\u2019 positions to close out.<\/p>\n\n\n\n Fortunately, many, but not all, broker shenanigans are considered old school.<\/p>\n\n\n\n Thanks to new rules from regulatory agencies such as the\u00a0Commodities Futures Trading Commission\u00a0and the\u00a0National Futures Association, these old scams have been cracked down upon.<\/p>\n\n\n\n You should choose a forex broker that is registered with a regulatory agency.<\/p>\n\n\n\n In the U.S., look for brokers registered as a Futures Commission Merchant (FCM) with the CFTC and an NFA member. Be wary of those brokers that are not regulated by the CFTC and the NFA.<\/p>\n\n\n\n You should know that the CFTC and NFA were made to protect the public against fraud, manipulation, and abusive trade practices.<\/p>\n\n\n\n Be careful, it\u2019s often difficult to distinguish between regulated and unregulated forex brokers!<\/p>\n\n\n\n You can verify the CFTC registration and NFA membership status of a particular broker and check their disciplinary history by phoning NFA at (800) 621-3570 or by checking the broker\/firm information section (BASIC) at the\u00a0NFA\u2019s website!<\/p>\n\n\n\n If you\u2019re trading forex outside the US, you\u2019re in luck! Other countries have regulatory agencies as well and protect individuals as well. More will be mentioned about them later.<\/p>\n\n\n\n If the broker in question is not registered or regulated by any national agency, then DO NOT<\/strong> deposit your money with them. We warned ya, so don\u2019t complain to us if you don\u2019t get your money back!<\/p>\n\n\n\n Stay away from non-regulated firms!<\/p>\n\n\n\n Also, don\u2019t be shy to also ask around in our\u00a0forex forums. It doesn\u2019t hurt to get personal opinions.<\/p>\n","protected":false},"excerpt":{"rendered":" Watch out for forex broker scams! Believe it or not, there are some brokers who \u201ccheat\u201d their clients. One way they do so is by manipulating bid\/ask spreads. Normal spreads between brokers would be around 2-3 pips but scammers would have spreads around 7-8 pips. Seven pips might not seem like a lot, but it does […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[804],"tags":[],"_links":{"self":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/10075"}],"collection":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/comments?post=10075"}],"version-history":[{"count":0,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/10075\/revisions"}],"wp:attachment":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/media?parent=10075"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/categories?post=10075"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/tags?post=10075"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Forex](\"https:\/\/bpcdn.co\/images\/2016\/05\/graduation-broker-stealing-piggy-bank.png\" "\\"Forex")
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