Forex Broker Misconducts
Signs of Forex scam or fraud
Trading on the financial markets of type Forex and CFD means an extremely high risk of loss. Various studies prove that 90% of investors lose their investments. Per se, losing your funds on the markets is not illegal as long as all of the involved parties comply with the rules.
Some foreign exchange brokers may use dishonest and illegal practices in order to take money from the investors. These manipulative techniques frequently target inexperienced forex investors. In most of the cases victims realize only after months or years that they were manipulated by their broker/dealer.
Some examples of manipulative techniques used by the online forex brokers are as follows:
- Establishing a “friendly” relationship with the potential victim
- Reliance on the advices of the account manager
- Promises of forex bonuses, profits or conditional gifts
- Making up of false urgent situations
- Pressure to “recover” after losses, etc.
Enticing offers are a way to attract the attention of a potential investor. Trading is often presented as an easy source of profit.
Various reprehensible practices have been identified through customer complaints and reports to Financial Market Regulators. In general, the goal of brokers is to encourage the clients to invest significant amounts on the markets and then make them lose all their investments.
Some examples of reprehensible mistakes of brokers met during our experiences can be mentioned as:
- Inappropriate advises or strategies
- Impossibility of withdrawing the invested funds
- Ambiguous or even misleading information
- Aggressive investment advices
- Dysfunction of the platform or irregular execution of orders etc.
If you have the feeling that you may be the victim of broker misconducts, contact our law firm for a free legal consultation.