TipsSeo – Fraudulent Forex Brokers That Harm Traders, According to Wikipedia, “Deceptive Forex Brokers are a form of fraud that convinces every trader to make huge profits in the foreign exchange market. According to Michael Dunn of the United States Commodity Futures Trading Commission, in early 2008, currency trading became a ‘fraud’.
There are many ways for fraudulent forex brokers and brokers to ensure that a bad retail broker is swimming in the trading storm.
According to Wikipedia, “Scam Forex brokers are a zero-sum game, which means that it doesn’t matter what one trader wins, the other trader loses.
These scams include hacking traders’ accounts, selling software that is supposed to lead traders to huge profits, mismanaging “managed accounts”, false advertising, ponzi schemes, and other scams.
This also applies to any retail forex broker who points out that foreign exchange trading is an investment with low risk and high returns. The US Commodity Futures Trading Commission (CFTC), which oversees the US foreign exchange market, said corruption in the foreign exchange industry had increased.
There are many other ways/reasons like Wikipedia again that traders lose their money. “The foreign exchange market is a zero-sum game where many experienced and professional traders (like those who work for banks) spend their full time in business. Inexperienced traders will have more information problems than these traders.
While some experts have managed to assess the market for unusually large returns, this does not mean that the same plethora of tools, techniques and data sources will provide the same benefits. This is because the arbitrators are basically drawn from a certain size pool; While information on how to handle arbitration is incompetent, arbitration itself is a good contender.
Traders – by definition – are less than capital to trade. Hence, they are subject to the problem of the gambler’s misfortune. A player with low stakes in fair play (without using information) is more likely to go bankrupt in the first place. Traders will inevitably go bankrupt because they are generally playing with the market – with endless capital.
Traders always pay offers, which reduces the chances of winning in fair play. Additional costs may include marginal interest, or if space is vacant for more than one day, the business may be “rebooked” daily, each time a bidder/bidder distributes a bid.
According to the Wall Street Journal (Currency Exchange Estimation, Fraud has been going on since July 26, 2005), “The people who run the store warn their customers not to set the market on time. “I wonder if 15% of day traders are profitable,” said FXCM CEO Drew Neve.
“Trading foreign exchange is a good way for investors to understand how tough the market is,” said Paul Belogor, Boston-based managing director of retail FX. But I tell my clients, if this is a lot of hard-earned money – you can never lose it – never invest in foreign exchange.
Fraudulent Forex brokers use high leverage
By providing maximum capacity, Fraudulent Forex Brokers encourage traders to trade in multiple locations. This will increase the number of trades completed by the broker and increase profits, but the trader will increase the risk of getting a margin call.
Professional currency brokers (banks, hedge funds) never use more than 10:1 , and retail customers generally offer capacities between 50:1 and 200:1. The National Futures Association, the foreign exchange market regulatory body, warns traders about the dangers of trading in forex training. “As mentioned at the beginning of this program, trading foreign exchange poses serious risks and may not be suitable for all clients as it will result in Losses.