Forex Brokers

As with many other things in life, with forex brokers there are the good, the bad, and the ugly. There are highly reputable firms that are properly regulated, there are others that use certain business practices such as excessive slippage or insisting that an order is held for a minimum amount of time, and there are out right scammers. For instance, there was a broker that went bankrupt having $430 million of bad debt. Traders’ money was not held in a separate (escrow) account, and was used to pay off other creditors.

It follows that, when considering a forex broker, you should most certainly do your due diligence and investigate the broker in depth before you part with any money. Unfortunately, there are people out there whose sole aim is to part you from your money. If someone you had never heard of opened a shop in your local town and called themselves a bank and offered 20% interest on your deposits, you would probably run a mile. You would want to investigate their claims very thoroughly before depositing your money with them. Yet, you are doing precisely that with a forex broker, so you need to know exactly what you are getting.

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