Facilitating trading is
a broker's job, and ensuring the best of this is a good broker's! However like
sides of a coin, there exist good and bad agents in trading. When it comes to
Forex trading, the sheer liquidity of this market is enough to reel in traders
and brokers alike. With over $5 trillion in trading volumes, everyone looks to
make a quick buck.
If not wary enough, your broker will rob you in broad daylight. Here are 6 ways online brokers cheat traders in Forex:
If not wary enough, your broker will rob you in broad daylight. Here are 6 ways online brokers cheat traders in Forex:
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How Brokers Cheat
Traders In Forex Trading?
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1. Official Looking Regulated Websites: With multitudes of Forex brokerages in play, a trader cannot afford to do a background check on every agency! Several brokers gain the trust of traders by looking amply decorated and getting a sign of approval from a renowned financial institution. In today's era regulation means very little! Brokers partner up with several established financial authorities to create a professional and established look, one which several novice traders fall for.
2. Manual Interference
in Your Trade: Leading a target away from closing a trade is another way by
which several scammers to cheat you. Before you reach said target, your deal
will automatically close. Once your deal closes prematurely, you end up in the
loss, and your loss is their profit. This is also called stop loss hunting;
where your positions are left open and the broker profits!
3. Slippages: A cunning and merciless way to scam novice traders is by slippage. This is done without the knowledge of the trader, during the bid-ask process, brokers increase the price of a currency pair in the last minute to avoid detection.
4. Re-quoting Prices: When a trader sees a good trade, he/she buys the commodity immediately. Brokers in an aim to keep you from doing so, increase the buy price - disabling your trade completely. Upon asking they will claim this to be an accident or a measure towards market volatility.
5. Over-leveraging: Leverage in trading refers to investing more money than you actually have. Leveraging needs huge capitals and is usually done by a broker. Bad brokers, however, use this as a reason to scam! They offer traders huge volumes for investing and once this goes into a loss, the traders have to pay back every dime borrowed. The worst part of leveraging is that it is legal!
6. Using Unreliable Software: Another method for brokers to scam is with the usage of software designed to rob you. Trading platforms take in all your data when you trade. Brokers employ this data and rob you of the money you own!
Reliability and trustworthiness govern the aspect of broker selection. Several new traders jump into trading without demo practice. This leads them into the hands of brokers who exploit their ignorance. However, with WesternFX by your side, you won't have to worry about such problems! Our expert team of brokers will be transparent with you about the process and will aid you throughout. To know more about our Forex brokers in Thailand, call us today!
3. Slippages: A cunning and merciless way to scam novice traders is by slippage. This is done without the knowledge of the trader, during the bid-ask process, brokers increase the price of a currency pair in the last minute to avoid detection.
4. Re-quoting Prices: When a trader sees a good trade, he/she buys the commodity immediately. Brokers in an aim to keep you from doing so, increase the buy price - disabling your trade completely. Upon asking they will claim this to be an accident or a measure towards market volatility.
5. Over-leveraging: Leverage in trading refers to investing more money than you actually have. Leveraging needs huge capitals and is usually done by a broker. Bad brokers, however, use this as a reason to scam! They offer traders huge volumes for investing and once this goes into a loss, the traders have to pay back every dime borrowed. The worst part of leveraging is that it is legal!
6. Using Unreliable Software: Another method for brokers to scam is with the usage of software designed to rob you. Trading platforms take in all your data when you trade. Brokers employ this data and rob you of the money you own!
Reliability and trustworthiness govern the aspect of broker selection. Several new traders jump into trading without demo practice. This leads them into the hands of brokers who exploit their ignorance. However, with WesternFX by your side, you won't have to worry about such problems! Our expert team of brokers will be transparent with you about the process and will aid you throughout. To know more about our Forex brokers in Thailand, call us today!
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