Anticipating Brokers Who Are Cheaters, These Are Smart Ways That Can Be Applied
Have you ever thought that being cheated by the forex broker?
The risk of forex brokers cheating is wide open, but don’t rush to blame the forex broker when losses come.
Here are some ways to anticipate losses due to rogue forex brokers and how to recognize them.
1. Understand the Cheating Broker From Requote
Requotes are one of the causes of traders’ losses which indicate that it was caused by the broker. This is worthy of suspicion when it often befalls you and you suffer losses due to it.
2. Understand Well Between Stop Loss Hunter With Incorrect Analysis
If you see your position often get a stop loss due to a spread that suddenly increases, then it could be such an indication that the broker cheated. To find out this, you must run the same 2 positions on the demo account and live account simultaneously. Try to open the same position and stop loss in both types of accounts.
Pay attention when the price decreases and approaches the stop loss, see if the position on the live account has been hit by a stop loss or not. If the buy position on the actual account is about stop loss while the demo account is still running, then the broker can be sure to cheat.
If the above does not occur, then you can be sure you are wrong in calculating.
Protect Yourself from Brokers Doing Cheats
You can avoid any losses made by brokers by being careful in choosing a broker.Broken broker actions can hurt you both financially and emotionally. Therefore, you need to avoid the broker’s actions in a smart way.
1. The existence of a regulation that does not guarantee the security of brokers
Many people think that every broker that has regulations must be guaranteed safe. Even though the reality is not so, because the regulation is only used as an attraction so that more clients register at the broker.
The thing you need to know is that there is always a gap in the broker doing fraud without being detected by the regulator. The more dangerous thing is that the broker could have bribed the regulatory body to pass the fraudulent act he did. In addition there are several important figures in the regulatory body who are the owners of brokerage companies.
Looking at the facts above, then you should not see the regulatory factors as important when choosing a broker.
2. Testimonials and Review Owned by Forex Brokers
Traders who have experienced the service of a broker directly can be an important factor for you to consider. Search for various reviews and testimonials they give to forex brokers.
3. Understand the Difference between Market Maker and ECN / STP Brokers
Basically, market maker brokers have a role as bookies and they benefit by fighting against client trading. So when you experience a loss, then that’s when they get a profit, as well as when you get a profit.
On the other hand ECN / STP brokers have the role of intermediaries and do not open opposite positions with clients, because they will not benefit when a trader experiences a loss. This means that the more clients who register and get profit through their account, the greater the profit they have.
With these differences, then every trick that can make you experience a lot of losses occurs in the market maker broker.
However, if you trade on an ECN / STP broker and still experience a loss, then the status as an ECN / STP broker can only be used as their guise to deceive you. In other words, it means that the broker is only a market maker who makes himself an ECN / STP broker to attract new clients.
In addition to the above, ECN / STP brokers also did not escape accusations of cheating from their clients. One cheating method that can be done is to set a markup spread to get a bigger profit.
Market maker brokers will not markup spreads because they control the spread costs themselves. To enlarge the spread, they can do it directly without having to add markup spreads in the real market.
With the explanation above, we can know that both types of brokers have the potential to cheat. However, trading on ECN / STP brokers is safer than through market maker brokers. This is because the ECN / STP broker will not fight the trading position that you open, so the trick of cheating is even less.
4. Understand Well Every Terms and Conditions
Before entering and trading in a forex broker, it’s good for you to understand each trading terms and conditions. In general, forex brokers will provide this information on the main website that you can access.
5. Don’t believe easily
If you have determined the choice of place to trade, then do not rush to register an account in a large deposit amount. You need to test the trading service provided with a demo account and use the minimum deposit amount first when trading on a live account.
What if you have already registered with a cheating broker?
Well, if you have registered with a live broker account that has a problem, then the solution that can be done is to withdraw all funds and immediately close the trading account at the broker. However, consider the following 2 things before taking the steps above.
First, you need to study the causes of losses that occur when you feel cheated by a forex broker. Understand well the terms and conditions set by the forex broker and if there are details in the document that justify the broker’s fraudulent actions, then you cannot blame the forex broker. You must be prepared to bear the losses due to the careless actions that you do, then immediately withdraw funds and close the account at the broker.
Second, if you have confirmed that fraudulent actions are not justified in the terms and conditions, then immediately file a complaint with the relevant broker.Be assertive when facing this problem, but never act rude. Explain well every problem you experience and include any evidence you have.
Tell them that you can publish the cheating they did to the online site, report to the regulatory body, and mark the broker to a special site that discusses scam brokers.
That’s a variety of smart ways you can do to avoid yourself from forex brokers who cheat with you. Hopefully the information above can inspire you all so that you don’t get fooled by brokers who cheat.