Find out which are the most common Forex scams run by disreputable Forex brokers and other Forex service providers, how you can identify them, and how you can avoid them.
. Frankly, this is probably something that financial regulators should be taking a closer look at.
, as nobody is being treated dishonestly or cheated in any way. Morally, the broker can argue it is taking the risk of loss to profit, as nobody is forcing their clients to trade – although the greater acceptance of problem gambling as a mental illness might call that into question.the next question you can ask is whether Forex brokers live up to this standard. Obviously, a broker that uses tricks to make its clients lose unfairly, or which simply refuses to pay out, is running a Forex scam.
The latter is arguably the bigger scam as it is dishonest if it does not reflect market conditions, which sometimes justify abnormally wide spreads which are naturally caused by illiquid market conditions., and their Forex brokers can of course see where those stops are, which often cluster together at obvious levels.
it is important to remember that sometimes natural market spreads do widen suddenly to take out clusters of stops in the real market, but if you see it happen repeatedly for no good reason, you are watching a scam broker in action.
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