About 2 years ago, we shared a post on our blog talking about how there are some Forex Brokers who seek to rip off their traders through cleverly thought-out tricks. This blog post is one of the most-read blog posts we’ve had on here. And we think we know why…
The reason is simple - you don’t play with Nigerians and their money oo! Especially not even in this BuBu era (no loud am oo).
Anyways, we thought to bring back that post and add a few updates to it, so you can be informed and be sure to avoid those kinds of rippers.
If you haven't seen the previous article before, it's right at the end of this post so make sure to read to the end.
Now, the truth is, the Forex industry, as profitable as it is, is also filled with a lot of scammers who do not value people nor have empathy for people’s sweat and money and only seek to rip people off.
Here are a few guides on how to recognize their modus operandi so you can run immediately when you come in contact with them.
Paramount to this conversation is the understanding that there are two types of brokers;
- Dealing Desk Brokers:- they make money when traders lose and as such, they put up systems to ensure that traders keep losing.
- STP (straight-through processing) Brokers:- they earn commissions from traders’ trading activities, as such, they don’t need traders to lose to make money. In fact, the more the traders trade, the more money they make.
You can read more on this in the previous blog HERE.
Here are a few more characteristics of Dealing Desk Brokers, so you can easily look out for them;
- Manipulating bid/ask spread: Normal spread for brokers on forex majors should be between 2-3 pips, but DDBs would have as high as 8-10 pips.
- They say there is no risk: This is also a clear sign of a scam because the success of the trader does not depend on the broker. The key role is played by the strategy of the trader, that is, how he diversifies the risks. It is impossible to completely eliminate the risk of Forex. Know this, and know peace!
- They use little-known or generally unknown trading terminals (that is, something other than these reputable terminals: MT5, MT4, LIBERTEX, QUIK, TRANSAQ, CQG, or ROX). If you don’t know the platform, please forget abourrit oo! You gerrit?
- SSL certificate: This detail is critical but many traders do not pay attention to it. An SSL certificate is a digital signature of the site, which guarantees the security and confidentiality of the connection to the server. This means that when on this website, the chance of getting malware or spyware that will transfer your data to third parties is minimal. Check am well oo.
Now, the truth is, brokers also run a business - and not a charity, so their sole aim is to make money. The issue arises when they begin to integrate loopholes in their system to ensure their clients rarely make money in order to increase their own profit.
However, here at 7BForex, we have a belief that, if our clients make money and continue to make money, they are happy and would continue to do business with us for a long time.
We are not looking to make one-off profits, we are long-term oriented and this is why each of our services is structured towards helping our clients profit and have the best trading experiences. Services like;
- ₦10,000 No-Deposit Welcome Bonus
- 100% Boom Bonus
- Trade Rally; and many more services are in our pipeline to be launched soon.
Know more ways some brokers scam their clients? Please share with us in the comment section!
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