In the world of online trading, pricing transparency is essential. Traders rely on the accuracy of price feeds to make sound decisions. However, fraudulent brokers have been known to exploit this trust through the Dual Pricing Scam—a deceptive practice where traders are shown one price on their platform, while orders are actually executed at a different, unfavourable rate.

This article reveals how the dual pricing scam works, how to identify it, and how to protect yourself from brokers who manipulate price feeds for their own gain.

What Is the Dual Pricing Scam?

The Dual Pricing Scam is a fraudulent strategy used by some unregulated or dishonest brokers who maintain two separate price feeds:

• One visible to the trader on their trading platform
• Another, real or manipulated feed used internally to execute orders

The trader sees price quotes that appear consistent with the market, but trades are filled based on a different internal price, often designed to trigger stop-losses, reduce profits, or cause slippage. The difference between the visible and executed price may be small, but over time, it can significantly drain a trading account.

How the Scam Works

Step 1: Fake Market Feed Displayed

The trading platform shows a price chart and bid/ask quotes that resemble those from major financial markets. This feed is often delayed, smoothed, or completely simulated to create the illusion of transparency.

Step 2: Trade Executed at Different Price

When a trader places an order—whether a market, stop, or limit order—the broker executes it at a less favourable internal price, which the trader never sees in real time.

Step 3: Explanation Deflected

If the trader questions the difference, the broker blames “slippage,” “volatility,” or “market execution variance.” Since slippage is common in legitimate trading, this excuse often goes unquestioned—despite being deliberately engineered.

Step 4: Account Bleed or Stop-Outs

Over time, this price manipulation reduces profitability, prematurely closes trades, and in some cases, triggers margin calls that wouldn’t have occurred under real market conditions.

Red Flags to Watch For

Unexplained Slippage in Stable Markets

If you frequently experience negative slippage—even during low volatility periods—it could indicate a manipulated feed behind the scenes.

Stop-Losses Triggered Just Before Reversals

If your stop-losses are consistently hit moments before price rebounds, the broker may be using internal pricing designed to force your exit.

Discrepancy with Independent Feeds

Compare your broker’s price data to reliable sources like TradingView, MetaTrader from regulated brokers, or Bloomberg. If there are consistent differences, it’s a major red flag.

No Access to Execution Reports

Legitimate brokers offer post-trade transparency, including fill prices, timestamps, and market depth. Scam brokers avoid this or provide vague explanations.

No Licensing or Offshore Registration

Most brokers involved in dual pricing schemes operate from loosely regulated jurisdictions with no enforcement mechanisms or trader protection.

How to Protect Yourself

Use Regulated Brokers Only

Only trade with brokers licensed by trusted financial authorities like the FCA, ASIC, or CySEC. Regulated brokers are required to follow strict execution transparency standards.

Monitor Trades Closely

Record your trading sessions using screen capture tools. Document price movements and trade outcomes to identify suspicious patterns.

Cross-Check with Real-Time Data

Always compare your broker’s price feed with external, independent sources. A consistent divergence points to a dual pricing setup.

Request Audit Trails

Ask for detailed trade records showing bid/ask spreads and timestamps. If the broker can’t provide them, they’re likely hiding something.

Avoid Brokers with Market Maker Models and No Oversight

While not all market makers are bad, those who operate without regulation or third-party price verification are more likely to use dual pricing systems to manipulate client outcomes.

Conclusion

The Dual Pricing Scam is a covert form of market manipulation that erodes a trader’s profitability by exploiting the lack of transparency between displayed and executed prices. It preys on inexperience and the assumption that all trading platforms are trustworthy. The key to avoiding such schemes lies in due diligence, ongoing monitoring, and choosing a broker with a proven track record of fairness and regulation.

To develop the skills necessary to detect broker manipulation and manage risk with confidence, enrol in practical Trading Courses that empower traders with real-world insights and professional-level training.