Is Your FX Broker Cheating Your Money? Learn How to Avoid Faulty Forex Dealers

By Teddy Low

Forex market, also known as FX market is a special kind of the world financial market. Trader's purpose on the FX market is to get profit as the result of foreign currencies purchase and sale. Different from stock market which everybody trade on the same centralized market, FX market is a non-centralized market. What is non-centralized market? FX market does not have a common market place for FX traders. All agents or dealers have the authority to execute transaction. Due to this reason, competition often happen and causing different deals in market available which offered by different dealers. As a FX trader, you should be cautious when selecting who to be your dealers as they will take full control on your transactions.

Below I will show you some example how some bad dealer doing scam on your capital although you are the one who call for investment decisions: -

Bad dealers normally will trick money from low self awareness clients. These bad dealers call themselves as retail market makers. They usually will persuade their clients to deal on margin and set stop loss orders. This will indirectly let the market makers to end up deals during busy market at their desired set point. If the retail market makers do not compensate the clients' set point, they will get yield when the loss generated when a stop loss is elicited. Based on retail trader's standing, these retail market makers effortlessly distort one way.

Another common trick used by bad dealers is persuading their clients to invest for certain currency before any confirmation of any major happenings. If all these unsuccessful, these bad dealers will demand tremendous prices, which also known as spiking to elicit stop loss orders.

Always the case that retail FX traders incapable to acquire good profit or sometimes making loss as these retail market makers already take some of the fund which clients invested. So, as a investor, we must be cautious on all these tricks.

Final piece of advice Do you know 7 out of 10 traders keep losing money in Forex market? That's right, 70% of individual FX traders keep losing their hard-earned money in the market; while the rest of the 30% work freely at home and earn millions annually. Wonder what differs between the losing 70% and the winning 30%? Forex trading skills and the trading system! If you wish success in Forex market, be very sure that the road is long and you need to study hard and smart to learn what it takes. The Forex market is definitely not a game for newbie and you need to brush up your skills before getting your hands wet. Article by Teddy Low. Learn Forex, visit GoLearnForex.com!