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Forex Brokers Guide – Forex Founders

 

Broker organizations you may want to avoid

 

While brokers who are not registered may or may not be suitable for traders, there exists a further group of broker organizations that you may want to categorically avoid. These are organizations that use betting techniques to conduct forex trades, techniques that are illegal in certain countries.

 

Bucket shops

 

Bucket shops” are brokers that take orders from traders without executing them on the foreign exchange market. The traders end up betting against the operators of the broker’s firm and are not in a position to know whether or not the broker is being honest with them.

 

Bookmakers

 

Similar to bucket shops, except that they make their money by manipulating the spread and not by winning the individual bets.

 

The forex market is still only loosely regulated and certain organizations take advantage of this. We already mentioned the desirability of staying within the circle of brokers that are registered with country regulatory agencies and that can show a clean record. You can also find information on reputable brokers from the lists and the ratings from Forexfounders.com.