The Forex market has evolved a lot since the days before the retail Forex market existed. Every day a new Forex broker open up shop, and every day new Forex trader fall into their traps.
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That is not to say that every single Forex broker is a scam – that is simply not true. However, unfortunately, there are many brokers who take advantage of new traders by promising them things they cannot deliver upon.
Whether the broker is offering exclusive bonuses to open an account, extraordinarily high leverage with which to trade, or competitive spreads on the various currencies, many Forex brokers make promises and then deliver nothing other than disappointment.
It is important that traders understand how the whole Forex broker thing works. Depending on the type of broker, it is a common occurrence for your broker to take the other side of your trade. What this means is that when you lose, they gain and so their best interest is to make you lose. Now, does that sound like a broker you want to depend on for customer support and a stable trading environment?
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Some of the tricks a Forex broker will play on traders is execute the trader’s requests with a delay so that they gain from the late response, as well as other tactics to make the trading experience all that more difficult.
I am not even going to talk about the full fledged scams out there that actually take a trader’s money and do not allow them to withdraw funds after they made some nice profits. Sounds pretty insane but that is the unfortunate reality of the Forex market.
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It is for this reason that reading Forex Brokers reviews and doing research before choosing a Forex broker is not a luxury, it is a necessity every Forex trader cannot afford to miss.