As traders it is no secrete that to enter the markets we need a broker. There is a sea of brokers out there. To be honest I cannot remember a day of my browsing the internet without encountering an ad for a broker. But we also have to remember that these brokers are not our friends. They are in the business of taking money from us traders and some traders tend to take it a bit more than they deserve. But not to worry, there are ways to deal with this sort of problem and it is right at your finger tips.
First of all before you go far into finding a broker you should always look through WikiFx first. This app helps you find the best regulated and verified brokers world wide. They also have a list of brokers which have recorded instances of broker misconduct so you can avoid these brokers at all costs. Always look for regulated and verified brokers, that is the only way you will be avoid cases of broker scamming. These regulatory boards ensure that brokers follow a strict code of conduct so they have no opportunity to scam you. But say you are using a broker with is not regulated or verified, how could you be scammed？
How do brokers scam you？
There are a number of scams brokers will use to swindle you out of hard earned cash. They can widen spreads to a undignified amount. This means that they see that at a certain level there are those who have stop losses and pending orders then widen the spreads so that they can take those people orders out and cash in. Some brokers have been shown to widen the gap up to an additional 15pips.
Another scammer favorite is opening unauthorized trades under your account. Meaning that during hours of the night when they know you are not trading they can open one or two losing trades under your account and simply eat your balance slowly. Or even when you open a number of trades, they will slip in some losing trades in there.
They can also charge you more for losing trades and pay you less for winning trades. Meaning if you are losing 20 pips on a trade you might be at a draw down for 25 dollars and when you up 20 pips on your trade, they might only say you are in profits for 18 dollars. It is a sneaky way they eat off your balance. They especially like doing this on fast moving instruments like indices or volatile pairs like EURUSD , which makes it harder to notice as pairs move fast.
The worst trick up their sleeve is simply denying you your withdrawals. After the hard work of profiting from the markets your broker may decide to raise bogus reason to deny your winnings and get your money. This one is very common and the most frustrating to deal with.
How do I fight back.
Well the best bet you have is going through WikiFx. These guys are connected to every regulatory board so if you see any of this behavior from these brokers you can report your issue through them and get justice. These guys have help thousands of traders retrieve millions of dollars from fraudulent brokers and you can also be helped as well. It is not the end of the world if brokers scam you out of your money. There are ways you can fight back and you should do so with this tool.
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