Bucket shops are companies that offer unauthorized brokerage services. Bucket shops typically have not completed the official registration procedures with the competent supervisory bodies. Therefore, they are not supervised and do not offer any guarantees to investors. They tend to attract their customers by offering much higher returns that those offered by the market at any given time. The probability of these companies being involved in fraudulent activities is very high. Therefore, it is advisable to exercise extreme caution and only trade through authorized brokers.