Did you know that even certain brokers were scammers? Do you know that scammers are everywhere? Believe it or not, there are some brokers who cheat on their clients!
They can do it by manipulating bid and ask spreads.
Regular spreads between brokers would be around 2-3 pips, however, scammers would have spread about 7-8 pips. Seven to Eight pis might not look like a lot, but it does tally up.
Visualize every time a client trades; he has to pay a spread of 7 pips. Think if he takes a just a few trades a day, and then multiply that with hundreds of other naive clients, you will be raking in the bucks!
Another way is to stop hunting. Remember brokers know where clients put their stops.
From time to time, they will make a run for those stops, affecting their clients’ positions to shut out.
Luckily, not all brokers are scammers.
So you should select a forex broker that is registered with a regulatory agency.
DO NOT deposit your money If the broker is not registered or not regulated by any national agency.
Stay away from non-regulated company! Remember it does not hurt to ask around and check, it is safer that way.