A reliable regulated broker does not trade against traders and operates according to the regulator’s code of conduct, yet there are scams and not-regulated brokers that exist to manipulate the market and trade unethically. These forex brokers trade against you. If you come across such cases, you should know what to do if you are scammed and learn how to file complaints against brokers to financial authorities.
|Online Brokers||Trading Platform||Open Account|
AvaTrade||Trading App, MT4, MT5, Web Trader, AvaOptions||Open Account|
|2006||20% Bonus||Trading App, MT4, MT5, Web Trader, AvaOptions|
Trade Nation||MetaTrader 4||Open Account|
|2010||Spreads from $0||ASIC|
Pepperstone||MT4, MT5, Web Trader||Open Account|
|2010||Best in UK||MT4, MT5, Web Trader - CYSEC, BAFIN, CMA, SCB, DFSA, ASIC, FCA|
FP Markets||Iress, MetaTrader||Open Account|
|2005||0.0 Pips||ASIC, CySEC|
eToro||Trading App, MT4, MT5, Web Trader, Copy Trader||Open Account|
|2007||Best for Copy Trading||NFA, CySEC, ASIC, CFTC, MiFID, FCA|
FXCM||MT4, MT5, Web Trader||Open Account|
|1999||$0 Rollover Fees||FCA, ASIC, SFC, CONSOB, BaFin, ACP|
Do Forex Brokers Trade Against You?
A regulated broker will always pay their clients and be transparent about the market price, movements, taxation law, and terms and conditions of using any bonus such as welcome bonus or no deposit forex bonus. This means you don’t have to worry about your broker trading against you.
Even in the primary forex market, some traders believe their brokers are cheating them, this is simply limited to scams and fraud schemes. There might be some uncertainty about forex taxation but reputable brokers have clear requirements when it comes to your income and taxes.
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Where Can I Complain About a Forex Broker?
If you are unhappy with your broker, you can complain to the authorities or contact the broker directly. Your forex broker is required by law to have a complaints procedure.
Contact the Broker for individual complaints
If you are unsure where to complain about a forex broker, you can contact the Financial Ombudsman in the UK or AFCA in Australia. You can send an email or physical letter to the financial regulator and request a review of your account. If you are unsure where to begin, read online complaints about forex brokers and be precise when lodging your complaint.
Lodge complaint with Financial Authorities
When dealing with a broker who is not regulated, you should first contact the broker. There should be a detailed written response to your complaint, as this will allow the two parties to follow up on each other and resolve the issue. It is important to note that the Financial Ombudsman does not investigate individual complaints.
What to Do If You Have Been Scammed by a Broker?
The first thing to do if you are scammed by a broker is to report the broker to the regulatory body. You should also keep a copy of your account statements and canceled checks so that you can trace your money if needed.
In the meantime, you should contact the broker’s legal department. If your broker does not respond to you, do some research on the company and the industry. If you are not satisfied with the results, you can contact the regulatory body. Make sure you have proof of the scam as well. This will help you get your money back if you were the victim of a broker’s fraud.
Can a Forex Broker Steal Your Money?
A forex scam is a scheme to lure you in and take your money. Fortunately, there are many ways to avoid this. Firstly, do not trade with a broker who is not licensed. Another way to prevent fraud is to do your own research and compare several companies based on facts and public records.
When looking for the best Forex broker, check the segregated account. A segregated account means that your broker keeps your money separate from his trading account. You can also check for complaints. A reliable broker will only have your best interests in mind.
You can also read customer reviews posted on reputable sites about potential brokers. You can even check whether the broker is regulated by any governing body. By checking customer reviews, you can ensure the legitimacy of the broker and avoid scams.