Today in the Forex market, the way brokers work can be classified as follows:
– Brokers who are directly trading on the currency exchange. The activities of such companies are regulated.
– The so-called “Forex cuisine”
If the first type of brokers is actually really present on the currency exchange, then the second type of access to the market, in fact, is absent. Such brokers merely create a trading space in which other players trade among themselves and with the broker itself. If you managed to get to an honest “kitchen”, you have the opportunity to get some profit, but in most cases it is almost impossible to make money with such a partner.
The principle of the “kitchen” is similar to the work of a real broker. The exchange rate at such sites is closest to what actually exists, and its changes occur in much the same way as on a real exchange. However, as soon as you start making profits, the broker himself can act as the second participant in the transaction, artificially making changes to the rules of the game in his own way, simply “hanging up” the software at the most inappropriate moment.
The main features of kitchens:
- A minor (up to a year) broker’s life. You can check the founding date either on the company’s website or in the relevant registries.
- Lack of required licenses, most of these “kitchens” have a simple license of gambling.
- A small number of customers, feedback on work, a small number of site visitors.
- A small set of trading tools.
- Availability of online contacts only, lack of representative offices.
- Large brokers are not associated with small amounts of deposits (one lot on a real exchange is at least 10 thousand dollars.)
- The “kitchens” have very rude contracts, often allowing you to simply terminate the contract unilaterally, without paying you a profit.
So in order not to get caught by a newbie hooked to scammers, you need to understand a few rules:
– choose brokers who have been in the market for many years and have a reputation for believing that you need to earn money by increasing the number of clients, and not by cheating.
– be careful at the beginning of gaining experience, not risklessly deposit, listen to the advice of more experienced players.
– carefully study the conditions of trade in the market. After all, experienced brokers earn commissions for conducting transactions and spreads, because they are interested in attracting new regular customers.
Important! FxCash.Ru company works only with reliable and proven brokerage companies. Rating brokers on the FxCash website will help you make the right choice.