The majority of traders know the Forex market is much larger than the stock market. Broker scams are also common. Brokers will try to manipulate you and make money from your trading. In this article, we will not try to help you to choose the right broker, but we will help you to select the evil brokers of Forex. They will try to scam you and may provide false price feed on your software to make their money from your money.
Here are some tips help you stay alert to scams.
Record ALL
By all, we mean all. Record every single trade you make on the Forex market. Record every single price feed take a screenshot of the pip movement. As pips are very important for making money, always take a screenshot of them. These screenshots can be used as evidence in the future. The recordings will be helpful to find out for yourself whether your broker is scamming you.
Check Price feed with International FX market
The reason fast-food shops have a display of their burgers and sandwich and pizzas is nobody wants to order anything seeing what they are going to get. The same is true for Forex. Without comparing your price feed, you cannot know what is happening with the price market in the world. Unless you trade with a great broker who can offer you accurate price feed, it will be very hard to make a profit in the options market. So, be very careful with the broker selection as your success greatly depends on your choice.
A broker can easily scam you by providing a false signal on your trading platform. Always compare the signals in your price feed with the other markets. Do not blindly trust your Forex broker. Forex is not a charity and everybody is trying to make money. For every one dollar you make in the Forex means another person loses a dollar. Do not be the loser in that occasion. Be smart, compare the price feed with the other markets and see if it is the price feed of the market or it is just data made up by your broker.
Legal Approach
If you think you are being cheated by your evil brokers, it is time for you to file a legal complaint. There are many high authorities dedicated to solving online trading problems on a legal basis. The screenshots that you take and the recorded evidence will come in handy in legal action. The more evidence you have, the more chance you get on the court. However, it would be wise not to invest any money with a low-end broker as the low-end brokers might freeze your account without showing any cause. Always choose a broker who has a proven track record and is well regulated.
Build and follow a solid routine
There are thousands and thousands of scamming brokers are waiting for newbies like you to scam you in Forex trading. Build a routine that you will follow every day. Do not make a profit on some trades and lose so much on one single trade, your account becomes zero. Build a trading habit, so that you can still make money even if you lose.
Place 10 trades on Forex and build the routine that, only 3 trades of your trades will be successful. 7 trades will cost you 1 dollar each and thus you will lose 7 dollars. 3 trades will give you 3 dollars each which makes 9 dollars. That means that, overall, you will have made 2 dollars in profit, even though you lost 7 of your 10 trades! That is the power of building and following a routine. If you follow these steps, you can protect yourself from Forex scamming. Don’t forget to use your common sense in trading. If something seems too good to be true, it probably is.
Evil brokers image by Mr Pool
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