Stay Away From Forex Bucket Shops

Here are the fraudulent guys in the forex market we were talking about earlier.

Forex bucket shops refer to brokerage firms with ‘questionable’ and ‘vague’ trading practices. This includes abnormally frequent price misquotations, a slippage that only favours the broker, as well as stop hunting.

“Aww common, you haven’t heard about Ben Affleck’s evergreen speech about money, huh?

“It has been said that money can’t buy you happiness, really? Take a look at the smile on my face—ear to ear. Love!”

And that’s the exact greedy, money-minded philosophy that spurs the crooked minds operating the forex bucket shops.

The name “bucket shops” emanate from brokers back in those days when such brokers put the phone-in orders of their clients on slips and then mercilessly drop them (the orders slips) into a tiny bucket without executing the orders.

By wickedly refusing to put the orders out in the open market, the unsuspecting client is, in reality, betting against the operators of the forex bucket shops who are also infamously known as bucketeers.

Usually, these old-school, heartless bucketeers don’t care about disclosing the actual price of the asset that is traded by their ‘innocent’ client. By so doing, they could mislead the client by saying that the price went up or didn’t go up—anything that can favour the broker.

But thanks to improving regulations and enforcement, most especially the coming of the internet—beginners now have less to worry about these modern times.

Notwithstanding, bucket shops are still very much alive, stalking the forex market for their unsuspecting client-victims. So beware and stay away from them.

Thanking your stars, we are committed to assisting you in avoiding entrusting your hard-earned money to these heartless bucketeers. Soon we will have a Forex Brokers Forum where you can go to and share in the feedback and experience of fellow forex traders. This will help you to separate the genuine brokers from the corrupt-minded ones.

In conclusion, before you deposit your cash with any broker, make sure you become your own James Bond and conduct a thorough, espionage-like investigation so that you don’t end up in the waiting arms of fraudsters in the forex market. There is a whole lot of them out there, and we shall look into that in our next lesson.

Watch out for “How to shield yourself from forex broker scams.”

  • BrokerEUR/USD
    LCG 0.3pips (variable) margin: 3.33%
    Core Spreads 0.6pips (variable) margin: 3.33%
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