W
e already told you about some of the tricks and schemes that forex bucket shops use to make you give them your money, but there are a few more measures to help you even the odds.
Be aware that most of them become more and more creative by using various techniques to mislead you. Sometimes it can be really hard to detect them.
Here is what you should do in order to prevent forex broker scams.
Always Compare Price Feeds
You shouldn’t limit yourself by looking at the price feed just on your trading platform.
You need to have the knowledge of what is going on at the other shops.
If you want to be a smart trader, you need to know how the market is moving on more than one platform.
If you only use the price feed on your trading platform, you are basically blindfolding yourself and you won’t have an idea what’s going on in the rest of the forex world.
If your broker is crooked, he might decide to widen spreads, manipulate rates or run your stops.
That’s why you need to get a complete view of the market, by subscribing to different platforms in order to observe how the price is changing.
Keep a record of your transactions
One of the basic things you should do is to have a journal of all your actions!
It might seem boring or unnecessary now, but if you do fall into a trap, you will need to prove that it is a scam.
If you want to prevent forex broker scams, take screenshots of your orders or anything unusual that is happening to the prices.
Even if it is not a scam, it is good to have such a trade journal in case of a disagreement between you and the broker, you will have evidence to support your objections.
File Legal Action
After all, if you can’t come to an agreement with your broker about what happened during the trade, you can always file a legal action.
Some of the institutions you can turn to are the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) in the United Kingdom or the Australian Securities and Investment Commission (ASIC) in Australia.
They can take the necessary measures to either resolve the argument or begin legal proceedings in a case that the broker failed to act in the best interests of clients.
However, if your forex broker doesn’t want to face the law, because they know what they did is illegal, they may give in and try to reach a consensus.
Good Trading Habits
We know that we sound like your mum who is always reminding you to take your coat when it is cold outside or take off your shoes before you enter that house.
But you will thank us later for all those tips!
Yes, you can call us officially your trading parent, who tries their best to make you a good trader by creating proper discipline.
Don’t blame immediately the evil brokers if you lose a trade.
First, think about what you should have predicted and what went wrong. Even if you have the best charting software and a good trading system, mistakes can happen.
Analyze them and try to learn your lesson next time! Fall into your own trap of miscalculations might be even more dangerous than a crooked broker’s trap!
