It is evident that we do not live in paradise. In the world people of good habits and unscrupulous people coexist, the Forex market is not the exception. Therefore, it is likely that in your choice of a forex broker you have had the luck of one who practices outside of any ethics, even in this type of business. Avoiding this type of situation is not usually so easy, so in this opportunity we want to offer some simple tips that will help minimize the risks on the part of the forex broker.
You can learn more about how to choose a currency broker by clicking here.
When we operate in the Forex market it is very likely that we spend several hours sitting in front of our computer, following at every moment what is happening in the currency world. Of course, this monitoring is done from the platform provided by our currency broker and we receive information provided by him. It is not bad that you act like that, after all, we must place our trust in who is responsible for executing our positions.
But trust should never be blind, so it is important that we have elements to check if the prices that our currency broker is providing us, are the ones that are really moving in the market.
If your broker has decided to extend the spreads, or execute the stops, it is important that you know that you do it based on what happens in the market.
One option that a trader can take to avoid price manipulation by the broker, is to subscribe to several online price reports. While we look at our own platform, we are checking that they are showing us the reality of the market.
One of the best practices that the trader must develop on a daily basis is to keep a record of all the transactions he makes, through the platform of his forex broker.
There is a very simple and quick way to keep a record of operations, orders that you send to your broker and everything that seems strange in the action of him. Take screenshots. Create a folder to store them and in this way, you will have a detailed record of all the movements that the broker makes with your money.
If there is a dispute situation with your forex broker, the screen captures will be a test of great value.
Most countries have agencies in charge of regulating activities in the currency market. In a previous article, we saw which are the organisms in the countries of the main currencies.
For the United States, the regulatory bodies are the Commodity Futures Trading Commission (CFTC) and the National Futures Associations (NFA).
In the case of the CFTC, it has a reparations program that provides a forum that is considered cheap, agile, fair and impartial. This forum is intended to resolve disputes between traders and brokers. You can learn more about this forum by clicking here.
The NFA, meanwhile, has a space for mediation and arbitration that allows resolving disputes in a field prior to legal actions.
From experience, the forex broker who is taking unclear actions often backs down in the face of threats to resort to legal action. But, if necessary, traders should know that they have mechanisms to claim.
It is important that a trader has the necessary tools to protect themselves from an unscrupulous currency broker. But, despite this, the most important is that you become a good trader, with healthy business habits.
By doing this, you will learn to quickly detect any attempt at dishonest practice on the part of your broker.
Have you had bad experiences with your forex broker? What actions did you take to solve them? Tell us about your experience and share it with others who are starting in the Forex market.