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

ForexFraud
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.


ForexFraud

Latest news

AUD/USD Pair Dips 0.45% in Markets, COVID Panic Grips
The US dollar continued a week of surges in lots of its key pairs after the coronavirus pandemic placed itself firmly back on the agenda. Read more
EUR/GBP Eyeing 0.9282 Level on the Forex Price Charts
The pair containing the single European currency and the British pound has been closely watched in recent weeks. Read more

Safest Forest Brokers 2020

Broker Info Best In Customer Satisfaction Score
#1 ForexTime LogoYour capital is at risk Founded: 2012 Global CFD and FX broker
Number One Broker
Best FOREX BROKER Visit broker
5
#2 Your capital is at risk Founded: 2012 Global Forex Broker
Number One Broker
Best Trading App Visit broker
5
#3 Forex Broker Pepperstone LogoYour capital is at risk Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
4.9
#4 Your capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
BEST CUSTOMER SUPPORT Visit broker
4.9
#5 BlackBull MarketsYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8

    Forex Fraud Certified Brokers

    HYCM Logo
    Exness Small Logo
    Forex.com Logo
    Plus500 Small Logo
    Oinvest Small Logo
    OctaFX Logo
    FXTM Logo
    Oanda Small Logo
    IQ Option Logo
    ATFX Logo
    LegacyFX Small Logo
    Pepperstone
    skilling logo
    City Index Logo
    VantageFX Small Logo
    BlackBull Markets Small Logo
    XM Logo