Know Your Rights – Behaviours that get Brokers ‘Behind Bars’

Chris Lee
Brought to you by: Stratton Markets LogoYour capital is at risk

Feel that some of your broker’s actions may fall under the “illegal” category? This article will explore some of the most popular examples of stockbroker fraud. Keep this checklist handy, and don’t hesitate to expose your intermediary, if you find that any of these hold.

Fund Conversion

There’s hardly a way to sugarcoat it – this is full on stealing. A broker engaging in fund conversion, draws money out of their clients’ trading accounts, and uses direct scheming to cover it up.

To be fair, people who normally fall target to this theft are the more vulnerable – the elderly or disabled, who are under-informed as to their accounts, and can be easily influenced by their broker’s supposedly good will.

Supply of False information

If you find a broker giving you false information in order to influence your trading choices – this sums up to investment fraud. Same goes for acknowledged omittance of vital trading information. Although this one can be a bit of a challenge to prove, it’s something that can be addressed appropriately.

Churning

Sure, keeping your finger on the pulse as well as taking comparatively quick decisions, is part of success in the markets. Nevertheless, brokers who encourage excessive trading are committing fraud. If you find your broker calling you every hour with twenty new opportunities for investment, it’s likely they are just looking to up their commission with the frequency of trades, and not actually thinking of your long-term trading strategy.

Unauthorized trading

Even if your broker insists they have your best interest at heart, there is no circumstance in which they are allowed to take control of your positions. Executing trading on your behalf, without your consent, is a violation of your rights and it’s punishable by law.

Breach of Contract

Brokers are obliged to fulfill the terms of contract provided. If you notice a breach of terms – you have a right to demand their fulfillment.

Truth is, any potential issue on the horizon is easier to handle when you opt for a licensed and regulated broker. The appropriate higher authority, based on country of establishment, ensures you don’t get scammed, and always takes care of your investment in case fraud issues are to arise.

Risk Warning: CFDs are complex instruments that come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts, lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.


Chris Lee

Latest news

Looking Forward To An Uncertain Few Months
If the bad news is that major global equity markets are heading towards forming a bear market, then the even worse news is that the increased price volatility looks set to be the dominant theme for the next few months. Read more
How To Use ETFs To Trade The Current Market Conditions?
For investors, 2022 has been quite a year. Read more

Safest Forest Brokers 2020

Broker Info Best In Customer Satisfaction Score
#1 ForexTime LogoYour capital is at risk Founded: 2011 Global CFD & FX Broker
Number One Broker
BEST FOREX BROKER Visit broker
5
#2 BlackBull Markets LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8
#3 66% of retail CFD accounts lose money Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
4.9
#4 Forex Broker eToro Logo67% of CFD traders lose Founded: 2007 Global CFD & FX Broker
Number One Broker
ALL-INCLUSIVE TRADING PLATFORM Visit broker
4.9
#5 Forex Broker Pepperstone LogoBetween 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
4.9

    Forex Fraud Certified Brokers

    City Index Logo
    HYCM Logo
    IC Markets Logo
    Forex.com Logo
    IQ Option Logo
    ATFX Logo
    OctaFX Logo
    FXTM Logo
    Pepperstone Logo
    AvaTrade logo
    BDSwiss Logo
    BlackBull Markets Logo
    Exness Small Logo
    skilling logo
    LegacyFX Small Logo
    XM Logo
    Plus500 Small Logo