Forex check

Some forex rate tables let traders personalize the listings. This way, users can focus solely on assets of interest.

Huge forex bonuses

If you intend to buy/sell a certain currency at a bank, you will find the buy/sell rate more useful. It tells you exactly how much currency X you are to receive for your currency Y.

Forex rates

Today’s forex rates. From euro to dollar, our live table delivers the forex exchange rates live. The mid price figure collates forex market numbers from around the globe. Note these rates are not available to retail clients, but are the live interbank exchange rates.

Live forex rates

What is A forex rate table?

A forex rate table is used to display the live rates of several currency pairs. The table provides a wealth of information on factors such as: the last price, the bid/ask prices, the actual price change, % change, daily open, high and low.

Extra information on volatility, current price trends as well as oversold/overbought conditions may also be present.

How to read FX rates

Bid/ask/last rates are obviously the most relevant in regards to the evolution of the price. When updated, these prices flash red or green, depending on the direction of the price change.

Actual- and percentage changes denote the difference between the current price and the opening price.

The technical indicators available through the table are updated much less often than the price itself. 15-minute intervals suffice in this regard. Indicators aim to give traders an idea about the likely direction of upcoming price swings.

Some forex rate tables offer access to additional tools and features, such as asset-related live news.

It is important to understand that these are not rates at which consumers can actually exchange currency.
Banks and money transfer providers will always amend their rates.

Why use A live forex data?

A proper forex rate table is the equivalent of a professional trading tool. Here, you gain access to it for free. That alone allows you to extract some value from it.

Some forex rate tables let traders personalize the listings. This way, users can focus solely on assets of interest.

The rates are real time ones, and they reflect interbank exchange rates. This is important because interbank rates work much better with the technical indicators provided – or with any sort of technical indicators for that matter.

Interbank rates also represent much more realistic valuations than broker-dealer provided rates.

Forex rates comparison

Calculating the exchange rate is an intricate exercise. Some data providers put more resources toward this exercise than others. Furthermore, the frequency with which your data provider updates its rates also induces a difference in the displayed prices.

There are official data providers (such as national central banks) and private institutions, such as oanda corporation, which derive their rates from their own market analysis.

Banks and brokers aim to generate profits off the exchange/trading services they provide. This profit-focus is reflected in their buy/sell prices accordingly.

Consolidation of forex markets

Different FX rate data providers focus on different markets. In line with this focus, they certainly grant more weight to some markets than others, when determining their exchange rates.

Mid-point prices

Some FX rate data providers show a mid-point exchange rate, while others show the buy/sell (bid/ask) prices. The two rates are essentially the same however, set apart by a simple arithmetic exercise. The mid-point rate is the arithmetic average of the bid/ask prices.

If you intend to buy/sell a certain currency at a bank, you will find the buy/sell rate more useful. It tells you exactly how much currency X you are to receive for your currency Y.

Brokers rate

Consequently, as a forex trader, you are only really interested in the rates provided by your broker. These rates will make or break your trades. Nothing else really matters.

Make sure you understand how your broker derives its rates and which data provider it uses. The raw data obtained from suppliers such as reuters, bloomberg etc. Can be manipulated. Therefore, it makes sense to know your broker’s policies in this regard.

How to spot a forex scam

The spot forex market traded over $6.6 trillion a day as of april 2019, including currency options and futures contracts. with this enormous amount of money floating around in an unregulated spot market that trades instantly, over the counter, with no accountability, forex scams offer unscrupulous operators the lure of earning fortunes in limited amounts of time. While many once-popular scams have ceased—thanks to serious enforcement actions by the commodity futures trading commission (CFTC) and the 1982 formation of the self-regulatory national futures association (NFA)—some old scams linger, and new ones keep popping up.

Back in the day: the point-spread scam

An old point-spread forex scam was based on computer manipulation of bid-ask spreads. The point spread between the bid and ask basically reflects the commission of a back-and-forth transaction processed through a broker. These spreads typically differ between currency pairs. The scam occurs when those point spreads differ widely among brokers.

Key takeaways

Many scams in the forex market are no longer as pervasive due to tighter regulations, but some problems still exist.

One shady practice is when forex brokers offer wide bid-ask spreads on certain currency pairs, making it more difficult to earn profits on trades.

Be careful of any offshore, unregulated broker.

Individuals and companies that market systems—like signal sellers or robot trading—sometimes sell products that are not tested and do not yield profitable results.

If the forex broker is commingling funds or limiting customer withdrawals, it could be an indicator that something fishy is going on.

For instance, some brokers do not offer the normal two-point to three-point spread in the EUR/USD but spreads of seven pips or more. (A pip is the smallest price move that a given exchange rate makes based on market convention. Since most major currency pairs are priced to four decimal places, the smallest change is that of the last decimal point.) factor in four or more additional pips on every trade, and any potential gains resulting from a good trade can be eaten away by commissions, depending on how the forex broker structures their fees for trading.

This scam has quieted down over the last 10 years, but be careful of any offshore retail brokers that are not regulated by the CFTC, NFA, or their nation of origin. These tendencies still exist, and it’s quite easy for firms to pack up and disappear with the money when confronted with actions. Many saw a jail cell for these computer manipulations. But the majority of violators have historically been united states-based companies, not the offshore ones.

The signal-seller scam

A popular modern-day scam is the signal seller. Signal sellers are retail firms, pooled asset managers, managed account companies, or individual traders that offer a system—for a daily, weekly, or monthly fee—that claims to identify favorable times to buy or sell a currency pair based on professional recommendations that will make anyone wealthy. They tout their long experience and trading abilities, plus testimonials from people who vouch for how great a trader and friend the person is, and the vast wealth that this person has earned for them. All the unsuspecting trader has to do is hand over X amount of dollars for the privilege of trade recommendations.

Many of signal-seller scammers simply collect money from a certain number of traders and disappear. Some will recommend a good trade now and then, to allow the signal money to perpetuate. This new scam is slowly becoming a wider problem. Although there are signal sellers who are honest and perform trade functions as intended, it pays to be skeptical.

"robot" scamming in today’s market

A persistent scam, old and new, presents itself in some types of forex-developed trading systems. These scammers tout their system’s ability to generate automatic trades that, even while you sleep, earn vast wealth. Today, the new terminology is “robot” because the process is fully automated with computers. Either way, many of these systems have never been submitted for formal review or tested by an independent source.

Examination of a forex robot must include the testing of a trading system’s parameters and optimization codes. If the parameters and optimization codes are invalid, the system will generate random buy and sell signals. This will cause unsuspecting traders to do nothing more than gamble. Although tested systems exist on the market, potential forex traders should do some research before putting money into one of these approaches.

Other factors to consider

Traditionally, many trading systems have been quite costly, up to $5,000 or more. This can be viewed as a scam in itself. No trader should pay more than a few hundred dollars for a proper system today. Be especially careful of system sellers who offer programs at exorbitant prices justified by a guarantee of phenomenal results. Instead, look for legitimate sellers whose systems have been properly tested to potentially earn income.

Another persistent problem is the commingling of funds. Without a record of segregated accounts, individuals cannot track the exact performance of their investments. This makes it easier for retail firms to use an investor’s money to pay exorbitant salaries; buy houses, cars, and planes or just disappear with the funds. Section 4D of the commodity futures modernization act of 2000 addressed the issue of fund segregation; what occurs in other nations is a separate issue.

An important factor to always consider when choosing a broker or a trading system is to be skeptical of promises or promotional material that guarantees a high level of performance.

Other scams and warning signs exist when brokers won’t allow the withdrawal of monies from investor accounts, or when problems exist within the trading platform. For example, can you enter or exit a trade during volatile market action after an economic announcement? If you can’t withdraw money, warning signs should flash. If the trading platform doesn’t operate to your liquidity expectations, warning signs should flash again.

The bottom line

Conduct due diligence on the forex broker you’re considering by going to the background affiliation status information center (BASIC), created by the NFA. Many changes have driven out the crooks and the old scams and legitimized the system for the many good firms. However, always be wary of new forex scams; the temptation and allure of huge profits will always bring new and more sophisticated scammers to this market.

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How to check if your forex broker is genuine

The FX market isn't new and as long as the online platforms continue to run, so will malicious, online threats.

The forex market is the largest financial market in the world. A staggering $5 trillion is traded every single day. That’s ‘trillion’, with a T!

Thanks to the emergence of online brokers, it is now easier than ever for potential traders to speculate on the performance of a country’s currency.

Traditionally throughout history, trading was only seen to be accessible for the elite and wealthy social classes.

Now thanks to leveraged trading coupled with accessibility to platforms through the internet, more users than ever are trying their hand at trading assets online.

In such a saturated market, traders have the luxury of choice to trade on a range of currencies from well-known currencies such as the great british pound, euro and US dollar to more exotic currencies such as the russian ruble and the mexican peso.

When there is so much choice available online, it is inevitable that online threats or malicious web users will look for ways to make a monetary gain through ill will.

The forex market has been around for many years and as long as the online platforms continue to run, so will malicious, online threats.

Scammers are everywhere online so as consumers we need to take some preventative measures to ensure we do not fall foul.

In a crowded marketplace, it can be difficult to choose a broker we are happy with and more importantly, one that is genuine.

The aim of looking for a broker should be to find one that one is genuine and will take care of you as a customer!

This article will explore how you can better identify when a broker is genuine and what measures you can take as a precaution.

So what precautionary measures can we take?

There are a few things you can do to protect yourself and give yourself assurances before depositing.

Look for brokers on accredited websites that are in the ‘safe broker’ sections.

Find out what sort of relationship you will have with the broker or how much contact you can be exposed to if needed. Have a conversation or open a dialogue with the broker to test transparency.

Do some research online into other users’ past experiences. There could be news releases detailing any wrongdoing, sanctions or ongoing litigation.

Before choosing a broker, shop around before you decide to commit and deposit to one.

Visit the site: many forex sites have reviews of brokers on their pages. Read the reviews from other readers. Look for affiliate links as well. If you see links from review sites and they lead directly to the broker site, this is a good indication that the site is up front about affiliation.

Read the small print!

If you have already signed up to a broker site ensure you check statements regularly as in lots traded, deposits in and out – as well as account balances. If there are discrepancies then address this with your broker.

Test the broker!

If you are really sold on a broker’s product features yet you are feeling skeptical about the legitimacy of the broker, then submit a small deposit.

You can test the platform with a small trade with low lot sizes and then request a withdrawal. There is no real reason why a broker should hold onto your funds.

When withdrawals are at a snail’s pace and you have to follow up with the broker to release funds, this is usually a telltale sign that the broker is not transparent with its clients.

Does the broker deliver on its promises?

Take a look at the site’s FAQ’s and information pages and see if they have any SLA’s such as offering withdrawals within 48 hours.

You can then test this SLA by looking to deposit small and then withdraw. Test how easy the process is it to get liquidity in and out of a broker.

If the broker stays in line with its SLA’s then you can rest easy that the broker is committed to keeping promises to its clients.

This will help you feel assured and be more trusting depositing larger amounts, knowing that your broker will give you back what is rightly yours.

STP broker eaglefx processes withdrawals on the same day as submission, guaranteeing its users fast access to their funds by using bitcoin as a primary deposit and withdrawal method.

Once a withdrawal is approved, you will receive the funds within an hour.

Is there a customer support team available for me when I need it the most?

Take a look at the site and see the range of customer service features a site has. Do they offer 24/7 support to assist you whenever you may need it?

Being always available for their clients shows you that a broker is committed to their clients and will do all they can to make themselves available to their clients.

If a broker has multiple ways for consumers to get in touch then this can be considered a plus. But be sure to test out this theory.

It is often the case that brokers have a livechat feature within their site. Before depositing into the broker, test them.

Talk to an agent and ask them some questions surrounding their withdrawal speeds and how easily you can get funds back.

Are you talking to a robot or a real person? You will quickly be able to tell.

Potential traders can also get a feel of how punctual, knowledgeable and caring a site’s support team is – based on their client relations.

It may be that a platform has a call back feature which you can test as well. Brokers show great flexibility with this feature as you can pencil in a conversation when it suits you.

Eaglefx offers an affiliate program where you can further increase your earning potential by referring friends or your online following to the site.

As a master affiliate, you can earn up to $5 per traded lot by your referees.

Not only that, you will have direct access to an affiliate executive to help guide you to success with your campaign.

To summarize…

Before choosing a broker, shop around before you decide to commit and deposit into one. Conducting your own due diligence is key.

Be super cautious regarding withdrawals. When a broker holds on to funds, it begs the question as to why?

Does this mean that client funds are stored in the same pot as broker funds?

This can get messy and discredit the legitimacy and intentions of a broker. Does this mean a broker would release certain withdrawals and not others based on the broker’s bottom line at that particular time?

When looking for the right broker for you, test them. The product features listed might appeal to you greatly, however, the proof is in the pudding.

Contact the broker and speak to someone via livechat to test the waters. Take some precautions such as reading the fine print and service level agreements the broker has with their clients and then test them for yourself.

Better still, cross-reference the SLA’s with a broker representative to look for consistencies or inconsistencies with their responses.

What is key, is to know the broker will be there for YOU when you need them.

Trade with confidence at eaglefx knowing that client funds are safeguarded using multiple security measures and client funds are completely separate.

The broker offers clients rapid access to funds, promising same-day withdrawals and has a 24/7 professional customer support team.

Disclaimer: the content of this article is sponsored and does not represent the opinions of finance magnates.

Is your forex broker a scam?

If you do an internet search on forex broker scams, the number of results is staggering. While the forex market is slowly becoming more regulated, there are many unscrupulous brokers who should not be in business.

When you're looking to trade forex, it's important to identify brokers who are reliable and viable, and to avoid the ones that are not. In order to sort out the strong brokers from the weak and the reputable ones from those with shady dealings, we must go through a series of steps before depositing a large amount of capital with a broker.

Trading is hard enough in itself, but when a broker implements practices that work against the trader, making a profit can be nearly impossible.

Key takeaways

If your broker does not respond to you, it may be a red flag that he or she is not looking out for your best interests.

To make sure you're not being duped by a shady broker, do your research, make sure there are no complaints, and read through all the fine print on documents.

Try opening a mini account with a small balance first, and make trades for a month before attempting a withdrawal.

If you see buy and sell trades for securities that don't fit your objectives, your broker may be churning.

If you are stuck with a bad broker, review all your documents and discuss your course of action before taking more drastic measures.

Separating forex fact from fiction

When researching a potential forex broker, traders must learn to separate fact from fiction. For instance, faced with all sorts of forums posts, articles, and disgruntled comments about a broker, we could assume that all traders fail and never make a profit. The traders that fail to make profits then post content online that blames the broker (or some other outside influence) for their own failed strategies.

One common complaint from traders is that a broker was intentionally trying to cause a loss in the form of statements such as, "as soon as I placed the trade, the direction of the market reversed" or "the broker stop hunted my positions," and "I always had slippage on my orders, and never in my favor." these types of experiences are common among traders and it is quite possible that the broker is not at fault.

Rookie traders

It is also entirely possible that new forex traders fail to trade with a tested strategy or trading plan. Instead, they make trades based on psychology (e.G., if a trader feels the market has to move in one direction or the other) and there is essentially a 50% chance they will be correct.

When the rookie trader enters a position, they are often entering when their emotions are waning. Experienced traders are aware of these junior tendencies and step in, taking the trade the other way. This befuddles new traders and leaves them feeling that the market—or their brokers—are out to get them and take their individual profits. Most of the time, this is not the case. It is simply a failure by the trader to understand market dynamics.

Broker failures

On occasion, losses are the broker's fault. This can occur when a broker attempts to rack up trading commissions at the client's expense. There have been reports of brokers arbitrarily moving quoted rates to trigger stop orders when other brokers' rates have not moved to that price.

Luckily for traders, this type of situation is an outlier and not likely to occur. One must remember that trading is usually not a zero-sum game, and brokers primarily make commissions with increased trading volumes. Overall, it is in the best interest of brokers to have long-term clients who trade regularly and thus, sustain capital or make a profit.

Behavioral trading

The slippage issue can often be attributed to behavioral economics. It is common practice for inexperienced traders to panic. They fear missing a move, so they hit their buy key, or they fear losing more and they hit the sell key.

In volatile exchange rate environments, the broker cannot ensure an order will be executed at the desired price. This results in sharp movements and slippage. The same is true for stop or limit orders. Some brokers guarantee stop and limit order fills, while others do not.

Even in more transparent markets, slippage happens, markets move, and we don't always get the price we want.

Communication is key

Real problems can begin to develop when communication between a trader and a broker begins to break down. If a trader does not receive responses from their broker or the broker provides vague answers to a trader's questions, these are common red flags that a broker may not be looking out for the client's best interest.

Issues of this nature should be resolved and explained to the trader, and the broker should also be helpful and display good customer relations. One of the most detrimental issues that may arise between a broker and a trader is the trader's inability to withdraw money from an account.

Broker research protects you

Protecting yourself from unscrupulous brokers in the first place is ideal. The following steps should help:

Do an online search for reviews of the broker. A generic internet search can provide insights into whether negative comments could just be a disgruntled trader or something more serious. A good supplement to this type of search is brokercheck from the financial industry regulatory authority (FINRA), which indicates whether there are outstanding legal actions against the broker. And if appropriate, gain a clearer understanding of the U.S. Regulations for forex brokers.

Make sure there are no complaints about not being able to withdraw funds. If there are, contact the user if possible and ask them about their experience.

Read through all the fine print of the documents when opening an account. Incentives to open an account can often be used against the trader when attempting to withdraw funds. For instance, if a trader deposits $10,000 and gets a $2,000 bonus, and then the trader loses money and attempts to withdraw some remaining funds, the broker may say they cannot withdraw the bonus funds. Reading the fine print will help make sure you understand all contingencies in these types of instances.

If you are satisfied with your research on a particular broker, open a mini account or an account with a small amount of capital. Trade it for a month or more, and then attempt to make a withdrawal. If everything has gone well, it should be relatively safe to deposit more funds. If you have problems, attempt to discuss them with the broker. If that fails, move on and post a detailed account of your experience online so others can learn from your experience.

It should be pointed out that a broker's size cannot be used to determine the level of risk involved. While larger brokers grow by providing a certain standard of service, the 2008-2009 financial crisis taught us that a big or popular firm isn't always safe.

The temptation to churn

Brokers or planners who are paid commissions for buying and selling securities can sometimes succumb to the temptation to effect transactions simply for the purpose of generating a commission. Those who do this excessively can be found guilty of churning—a term coined by the securities and exchange commission (SEC) that denotes when a broker places trades for a purpose other than to benefit the client. those who are found guilty of this can face fines, reprimands, suspension, dismissal, disbarment, or even criminal sanctions in some cases.

SEC defines churning

The SEC defines churning in the following manner:

The key to remember here is that the trades that are placed are not increasing your account value. If you have given your broker trading authority over your account, then the possibility of churning can only exist if they are trading your account heavily, and your balance either remains the same or decreases in value over time.

Of course, it is possible that your broker may be genuinely attempting to grow your assets, but you need to find out exactly what they are doing and why. If you are calling the shots and the broker is following your instructions, then that cannot be classified as churning.

Evaluate your trades

One of the clearest signs of churning can be when you see buy and sell trades for securities that don’t fit your investment objectives. For example, if your objective is to generate a current stable income, then you should not be seeing buy and sell trades on your statements for small-cap equity or technology stocks or funds.

Churning with derivatives such as put and call options can be even harder to spot, as these instruments can be used to accomplish a variety of objectives. But buying and selling puts and calls should, in most cases, only be happening if you have a high-risk tolerance. Selling calls and puts can generate current income as long as it is done prudently.

How regulators evaluate churning

An arbitration panel will consider several factors when they conduct hearings to determine whether a broker has been churning an account. They will examine the trades that were placed in light of the client’s level of education, experience, and sophistication as well as the nature of the client’s relationship with the broker. They will also weigh the number of solicited versus unsolicited trades and the dollar amount of commissions that have been generated as compared to the client’s gains or losses as a result of these trades.

There are times when it may seem like your broker may be churning your account, but this may not necessarily be the case. If you have questions about this and feel uneasy about what your advisor is doing with your money, then don’t hesitate to consult a securities attorney or file a complaint on the SEC's website.

Already stuck with a bad broker?

Unfortunately, options are very limited at this stage. However, there are a few things you can do. First, read through all documents to make sure your broker is actually in the wrong. If you have missed something or failed to read the documents you signed, you may have to assume the blame.

Next, discuss the course of action you will take if the broker does not adequately answer your questions or provide a withdrawal. Steps may include posting comments online or reporting the broker to FINRA or the appropriate regulatory body in your country.

The bottom line

While traders may blame brokers for their losses, there are times when brokers really are at fault. A trader needs to be thorough and conduct research on a broker before opening an account and if the research turns up positive for the broker, then a small deposit should be made, followed by a few trades and then a withdrawal. If this goes well, then a larger deposit can be made.

However, if you are already in a problematic situation, you should verify that the broker is conducting illegal activity (such as churning), attempt to have your questions answered, and if all else fails, and/or report the person to the SEC, FINRA, or another regulatory body that could enforce action against them.

Forex scams

Top 7 forex scams to avoid today

As forex markets promise to give you an incredible return on investment, they became trendy in the last few years. However, often forex traders don’t have a great understanding of how forex markets work and what a forex broker does exactly, which leaves the latter a lot of room to scam the trader. Whether it is about proposals on instagram or simply fake investment advice, beware.

It’s a complicated industry, and even experienced people fall victim to intricate trading schemes. There are quite a few variations of the forex fraud. Let’s take a look at a few of them. Feel free to add names of questionable forex platforms in the comments section, at the bottom of the article.

Forex trading strategies – scam 1: the whole package

According to the specialists at investorguide.Com, this might come your way by crooks “creating false customer accounts for the purpose of generating commissions, selling software that is supposed to garner large profits for the customer, false claims of customers making huge money, the theft of a customer’s account and phony marketing.

Forex scams draw customers in with sophisticated advertisements placed in the newspaper, heard on the radio, or seen on internet websites.

Forex trading strategies – scam 2: computer manipulation of bid/ask spreads

How does this scam work? According to dailyforex.Com (a great team of analysts and researchers who watch the market throughout the day to provide unique perspectives and helpful analysis on forex trading), “the point spread between the bid and ask basically reflects the commission of a back and forth transaction processed through a broker. The point spreads differ widely among brokers and differ between currency pairs.

Since brokers don’t usually offer the normal two- to three-point spread in the EUR/USD, for example, but go for spreads of seven pips or more, any potential gains resulting from a good investment were eaten away by commissions. These commissions found themselves in the broker’s pocket.

Forex strategies – scam 3: commingling funds

In law, commingling is a breach of trust in which a fiduciary mixes funds that he holds in the care of a client with his own funds, making it difficult to determine which funds belong to the fiduciary and which belong to the client.

When it comes to the forex scam, the same team at dailyforex.Com explains: “commingling funds gives forex brokers the opportunity to pocket much of an investor’s money without the client ever noticing any discrepancy. The broker benefits financially during the trading and eventually disappears with a customer’s money.”

“if a forex trader looks carefully and states vigilant he/she can pick up are certain warning signs which can alert him/her when all is not on the straight and narrow. If a broker won’t allow the withdrawal of monies from investor accounts or if problems exist within the trading station, the trader should take immediate notice.

Additionally, guarantees of high performance levels-some much higher than those offered by other forex brokers-should be viewed with considerable skepticism.”

Forex strategies – scam 4: robots/automated systems

Surprised? Don’t be. This is an increasing scam especially with the advancement of the technology. Questionable brokers sell automatic trading systems which claim to generate automatic trades even when the trader is sleeping.

Some shady companies sell their special “packages” for thousands of dollars, only to find out that some of these you can find on the internet for free.

“most of these robots have not been tested by an independent source for formal review. Their trading system’s parameters and optimization codes are usually invalid and at the end of the day, the system generates totally random buy and sell signals”, concludes dailyforex.Com.

Forex strategies – scam 5: fake investments funds

All kinds of HYIP funds have been notoriously showing up everywhere. Simply because they work; for the scammers! The high yield investment program funds ‘guarantee’ you a great level of return for temporary use of your money in their forex fund.

The concept that sells this ponzi scheme is that the investors of yesterday get paid back by the investors of tomorrow. How the scam works is that once the fund runs out of prospects, it closes down and takes whatever money it has with it.

Must read: online college course scam

Forex strategies – scam 6: signal seller membership

Just like the robots, certain ‘signal sellers’ claim to sell you information on which trades you should make in order to get rich. The trick is – they charge a weekly or monthly fee for their service (‘signals’).

Little do you know that not only you are lose your money, but they do not even offer you anything that will help improve your trading!

Forex on instagram – scam 7: fake accounts

With the advancement of technology, there are many well-run online scams on social media when it comes to forex. Some have over a thousand ‘followers’ losing money as the fraud is advertised as a get rich quick scheme.

People are signed up to a trading platform through so-called ‘companies’ and are asked to deposit their hard-earned money to deposit $400 (or EURO). Ultimately, they lose it all through investment advice from kids who earn a kickback when clients give money to the platform used to sign up.

These questionable forex platforms have recruited and paid multiple young adults from ages 18-21 to promote their scheme online. They get paid for luring new people into the system. They also use well known social media influencers to promote them and tell lies about the service.

How to avoid the forex scams:

There are many red flags you should be aware of. The first one would be when you are guaranteed a profit. There are no guarantee profits in forex. Use your computer and search reviews featuring the broker, or the system, or the signal seller.

Make sure the testimonials are genuine and do not come from their own websites. Check all the forex forums and google the name of the broker followed by the word ‘scam’.

Check their website very carefully. If they don’t have a legitimate contact page with phone numbers and emails, that’s another red flag.

Last but not least, keep in mind that there is no ‘miracle’ software that will figure out the forex market for you. If anybody would own that, why would they sell it?

How to report **the forex strategies scams:**

Make your family and friends aware of this scam by sharing it on social media using the buttons provided. You can also officially report the scammers to the federal trade commission using the link below:

How to protect yourself more:

If you want to be the first to find out the most notorious scams every week, feel free to subscribe to the scam detector newsletter here. You’ll receive periodical emails and we promise not to spam. Last but not least, use the comments section below to expose other scammers.

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What does a forex spread tell traders?

Forex spreads explain ed : main t alking points

Spreads are based on the buy and sell price of a currency pair.

Costs are based on forex spreads and lot sizes.

Forex spreads are variable and should be referenced from your trading platform.

It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. In this article we explore how forex spreads work, and how to calculate costs and keep an eye on changes in the spread to maximize your trading success.

What is a spread in forex trading?

Every market has a spread and so does forex . A spread is simply defined as the price difference between where a trader may purchase or sell an underlying asset. Traders that are familiar with equities will synonymously call this the bid: ask spread.

Below we can see an example of the forex spread being calculated for the EUR/USD . First, we will find the buy price at 1.13398 and then subtract the sell price of 1.3404 . What we are left with after this process is a reading of .00006 . Traders should remember that the pip value is then identified on the EUR/USD as the 4th digit after the decimal, making the final spread calculated as 0.6 pips.

What a spread tells traders. EUR/USD spread

Now we know how to calculate the spread in pips, let’s look at the actual cost incurred by traders.

How to calculate the forex spread and costs

Before we calculate the cost of a spread, remember that the spread is just the ask price less (minus) the bid price of a currency pair. So, in our example above, 1.13404-1.13398 = 0.00006 or 0.6 pips.

Using the quotes above, we know we can currently buy the EUR/USD at 1.13404 and close the transaction at a sell price of 1.13398. That means as soon as our trade is open, a trader would incur 0.6 pips of spread.

To find the total spread cost, we will now need to multiply this value by pip cost while considering the total amount of lots traded. When trading a 10k EUR/USD lot, you would incur a total cost of 0.00006 (0.6pips) X 10,000 (10k lot) = $0.6. If you were trading a standard lot (100,000 units of currency) your spread cost would be 0.00006pips (0.6pips) X 100,000 (1 standard lot) = $6.

If your account is denominated in another currency, like GBP, you would have to convert it to US dollars.

Understanding a high spread and a low spread

It’s important to note that the FX spread can vary over the course of the day, ranging between a ‘high spread’ and a ‘low spread’.

This is because the spread can be influenced by multiple factors like volatility or liquidity. You will notice that some currency pairs, like emerging market currency pairs , have a greater spread than major currency pairs . Your major currency pairs trade in higher volumes compared to emerging market currencies, and higher trade volumes tend to lead to lower spreads under normal conditions.

Additionally, it’s well known that liquidity can dry up and spreads can widen in the lead up to major news events and in between trading sessions .

So, let's see, what we have: forex rates for today. Live forex rates including euro, GBP and dollar spot rates. Includes advice on reading and trading forex pairs and live rates table at forex check