WHAT ARE THE RISKS OF DOING BUSINESS WITH “BUCKET SHOPS”?

Legal issues (i.e., a set of acts governing and controlling the functions of
banks, dealers, and broker companies in the FOREX market, established
by government agencies) are of primary importance because traders have
to entrust their money to the dealers. First, it is better for traders to make
sure that their money is safe and that the breach of trust is impossible for
the dealer.
I am not a lawyer, so I have no right to advise my clients on legal matters.
The vast majority of dealer companies function in many countries,
with various rules and regulations of which I am not aware. My recommendations
are, therefore, based on my personal experience and preferences.
In any case, you had better survey the problem yourself and
preferably ask a lawyer for legal advice. The following sections outline my
personal opinion concerning dealer choice, considering the security of
capital invested in FOREX operations.