How do black brokers work?

Every trader needs to learn how to identify the signs of black brokers. Many unscrupulous companies use sophisticated deception schemes. Even some experienced investors can not bring them to clean water. Knowing the main characteristics of black brokers, you will avoid serious financial losses.

Most often, such organizations operate in the over-the-counter market. These are market-maker models that take into account the processing of orders within the company. They provide their customers with quotes taken from news portals or from banks. The main features are a low spread, often fixed. Consider that such brokers are interested in losing a trader. The loss of the investor is one hundred percent profit of the organization.

Black brokers can promise to enter the interbank market. But from the first transactions, you can see that orders are processed within the system. Some unscrupulous companies create an imitation of trade. Their companies may think they are using robot advisors. In such situations slippage often occurs. As a result, the trader notes the actual drain of the deposit. In this case, the broker refers to the guilt of the investor or other reasons.

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