Trading can be exciting and exhilarating, especially when you are new to the profession and you are still trying to get your footing into forex trading. But you have to realize that as a newbie you are pretty much at the mercy of the shark brokers who want to take advantage of you. They are hoping that they can use your ignorance to guide you down the wrong path and swindle you out of your cash. But you do not have to accept this. There are ways and tools at your disposal that will make sure you choose the right broker for you.
What can brokers do against you？
Firstly you have to realize that the brokers are not your friends. They need you to lose money for them to be make money so they do not have your financial wellbeing at heart. They are in the business of taking money from losing traders so do not simply trust every broker. They are the enemy remember that anytime you want to invest with a broker.
Brokers have a number of ways which they can swindle you out of your money. They can open up spreads far beyond the promised pips to get you an entry you do not desire, or better yet simply refuse you to enter at the price you desire. This is called slippage and can be very frustrating when you have limited funds. Another trick up their sleeve is to sneakily open losing trades in your account which you did not place on your own. They slowly leak funds out of your account without you noticing.
Another way they get you is by over exaggerating pip size when you are losing a trade, then under valuing pip size when you are winning. Meaning 30 pips when you are losing will cost say $40, then suddenly when you winning 30 pips is now $25. It may not exaggerated to this extent. It is more subtle than that. So subtle that its too quick for you to calculate of your head when you are looking at the trade float. But those pips eventually add up and you will go through your account at a faster rate than is necessary.
You could survive all of this and still grow your account balance. But another stable favourite of brokers is simply refusing withdrawals. They will use each and every excuse in the book to hold on to your money. Be it incomplete registration or missing documents or shady company policy, they will make your life hell before you can eat the fruits of your labour.
How to fight back？
It is not every broker that operates in these fraudulent ways. A number of governmental services have stepped in to prevent this kind of behaviour and they are a number of regulatory boards globally that ensure brokers are operating under the law. You need to do your research before finding a broker and your best bet to find a well regulated and licensed broker is through an app called WikiFx .
This a tool sent from God. This app is the number one research tool at your disposal because they are connected to every regulatory board globally. In seconds you can find the best brokers in your country, which have passed through the strict vexing and that are well regulated and licensed.
They also give you a channel on which to report any misconduct by your broker. Meaning if you are unfortunate to experience these sort of issues in the future you can file your complain through WikiFx and they will ensure that your issue is heard by the regulatory boards who are able to clamp down on your broker and get your justice. Trust me, this app will avoid you a lot of grief as they point down the path of good brokers as well as steer you away from the bad brokers. Give it a try next time you in the market looking for a broker.
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