Activity Streams Forums banking and finance Personal and Business Finance How are Forex Brokers scamming traders?


3 replies, 4 voices Last updated by  Alex Jones 2 weeks ago
  • Author
  • #4346

    Saul Haggins

    Forex Brokers scamming traders

  • #4347

    Alan Mendez

    If a FX broker is regulated, the chances of them scamming a trader are quite slim. Naturally, it happens but it is not very common because let’s face it, it takes a lot to become recognized and to be regulated by regulatory bodies. Not just any broker can get this recognition and it would not be worth it to most brokers to to lose their reputation and face criminal charges.

    The main ways in which some brokers are scamming their clients are generally through non-payment of profits, freezing their platforms, closing accounts without providing a good reason, slippage, and through stop hunting. If you feel you are being scammed, then report it or talk with a lawyer. If you are still shopping around for the best Forex broker, you should take the time to learn more about how to compare different licensed brokers to see which one is worth working with.

  • #4348

    Carla Rahal

    Here are some popular scams a trader needs to look out for:

    The broker is a clone of a legitimate company, lying about their credentials, luring clients to invest money in them.
    The broker sets up false software that is not actually connected to the market and manipulates your trading.
    The broker employees manipulate traders with promises of large profits but their trading advice only leads to losses.
    They also refuse to let clients withdraw their profits and/or initial deposits with all sorts of ridiculous excuses, ranging from sudden demands of new documents proving the client’s ID to saying that whatever money transfer service they’re using is not working at the moment, etc.etc.

  • #4349

    Alex Jones

    Brokers can scam clients pretty easily. They control the platform software and they can play all kinds of games with your account. They can freeze the account during important news events so you can’t trade if the brokers risk level is too high, they can freeze your account when you have a big loss or big profit so you can’t close the trade, but they can close your trade anytime they wish. The broker can add pips onto your trade by manipulating the software so you get stopped out easily and your profit targets don’t get hit and your winning trade doesn’t close out when it should and turns around and starts to move against you.

    The truth is that most Retail Forex traders lose consistently so the broker doesn’t have to interfere too much. Some of the brokers help you lose more so they become richer. You need to have a professional platform and a professional broker who is interested in making fees off of your trading, not scamming you until you go broke.

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