Protect Yourself against Forex Broker Scams
Even though you may feel like a dwarf among gigantic evil brokers, it does not mean that you have to be OKAY with their abuse! If you are unhappy when it seems that brokers have all the advantage, rest guaranteed that there are some easy actions to facilitate even the odds.
Compare Price Feeds
If you only make use of the price feed on your brokers’ trading platform, you are actually trading like a horse with blinders on.
You even don’t know what is happening in the rest of the forex industry because you have limited yourself to your broker’s price feed. If your broker decides to extend spreads, influence rates, and run your stops, you have no means of knowing if the move resembled the common market.
The best way to get rid of this is to go for a second, third, or even fourth price feed. With this way, you get a different view of the market, and you’d have a chance to make sure whether price actually moved the way it did.
Always keep a detailed journal tracking all of your transactions with your broker! Never compromise with this! Like in a courtroom, you must have proof to make a case. You may FEEL cheated, but if you do not have any evidence to back it up, then that feeling will remain just a feeling.
The simplest way to keep regular records is to capture a screenshot of each transaction you make, each trade you execute, and other uncertain broker activity like odd price feeds.
File Legal Action
If you cannot resolve your conflict with your chosen broker, then it is good for you to take legal action. Most brokers surrender when warned with the threat of legal action, however if they do not, you can come up to either the National Futures Associations (NFA) or the Commodity Futures Trading Commission (CFTC).
Good Trading Practices
Like a disciplined nurse who wears a habit, you too must develop good trading practice. Moreover, even with the right weapons to protect yourself against bad brokers, the main thing is still to grow to be a better trader.
Remember that no matter how superior your trading platform is, no matter how much time you spend finding a good broker, no matter how effective your trading system is, without having proper discipline, you will end up losing.
It is easy to the blame the brokers for your losing, but at the end of the day, it is basically your choices that get you to where you want to go.