Here is what you can do to avoid being scammed by some forex brokers

Here is what you can do to avoid being scammed by some forex brokers

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Sometimes, people get disheartened because of some opposing sides of trading. Some of the biggest concerns of people in trading are the brokers and how they facilitate the trades. Let us run through some measures that can help us prevent brokers who have lousy trading practices.

Observe and compare different price feeds

Traders must not limit themselves to a singular price feed. A wise trader will want to get a hold of a bigger view of the market. If you only focus on your broker’s price feed, you will not know about the rest of the forex market. What if the broker you chose happens to be someone who loves to manipulate rates, widen spreads, and run stops? You will never know this if you trusted your broker too much that you did not bother to check and make an effort to understand other price feeds.

Here is what you can do: subscribe to multiple price feeds to get the most comprehensive and complete view of the market. This way, you can at least tell whether the price really moved or not.

Keep receipts and pieces of evidence.

Keeping records and evidence is an added security for a trader like you. Evidence or any document that can back up your statement will help solve a case. Evidence is like a sword on the battlefield of problems. This does not only apply in trading but also in life in general.

Here is how you can secure yourself from bad brokers and trading problems:

  1. Take as much evidence as possible.
  2. Take screenshots of your orders.
  3. Keep a detailed journal of your trading transactions.
  4. Take notes if you feel like your broker has suspicious activities or pricing.

If you happen to become a victim of errant fills, then you can easily track your trades. If worse comes to worst (which we hope would not happen) where you filed a case of dispute against your broker, you will have all the evidence that you will need to win the case.

Take the matter to legal hands.

If the case became too grave and you feel like something more powerful should intervene between you and your broker, it is time to file a lawsuit and take legal action. Usually, a forex broker who is really at fault will admit their wrongdoings when clients involve the court and legal actions. But if they’re tough and they believe that they’ve also been wronged, you can try to ask for help from CFTC (Commodity Futures Trading Commissions or NFA (National Futures Associations). They both resolve disputes.

And lastly, become a better trader.

We cannot eliminate bad people from the world. The same is true with trading. We cannot all know who they are and stop them all. Some people will take advantage if they can. The only solution is to become a wiser and better trader. Put more effort into understanding the ins and outs of the trading world so that no one will dare to fool or scam you. No excellent software, broker, or trading system can help you if you are clueless about some things. Perseverance and hard work will help you go to places.

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