master wants to ask, what kind of cheating is usually done by brokers on customers? please explain one by one
Broker fraud can occur with certain brokers; you can see reviews of them here.
(UPDATE: There are 6 clearer forms of broker fraud discussed in the article: 6 Ways Forex Brokers Can Cheat You)
To anticipate undesirable things, it is best to choose a broker that is already registered and regulated by a credible agency,
Brokers who commit fraud can be reported to the regulator where the broker is registered. We can take the example of a well-known broker, FXCM, which is also a member of the NFA and CFTC. The broker was reported by clients who felt disadvantaged and was eventually sanctioned for violations and required to pay a fine of $2,000,000.
@ Sadeah:
Common types of fraud include:
- Requote, which is a re-offering of the price you ordered, when the position you opened is expected to be profitable.
- Slow order closing execution, especially when the position is profitable.
- Excessive slippage, which is a price jump when high-impact data is released, but the range is too high (abnormal).
- Stop loss hunting, which is the use of certain software that can track the stop loss levels you set, and can cause those levels to be executed quickly.
- Spread widening too much. This can happen at any time, especially when high-impact data is released, but the spread difference is too large.
- Withdrawal process slowed down or delayed for certain reasons.