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Navigating the Risks of Forex Scams: An Essential Guide for Traders
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Dec 11, 2023 at 06:16
The foreign exchange (forex) market, with a daily turnover exceeding $6.6 trillion, is not immune to fraudulent activities. Despite increased regulation by entities like the Commodity Futures Trading Commission (CFTC), the market's unregulated segments remain fertile ground for various scams.Historical Context: Bid-Ask Spread ManipulationIn the past, a prevalent forex scam involved the manipulation of bid-ask spreads. Brokers unethically widened spreads, inflating transaction costs and eroding traders' profits. An egregious example was the offering of seven pips or more on EUR/USD pair...
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