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As a trader
and an Introducing Broker for ironfx.com, I will be honest with my readers and
let them know that most brokers are not always honest in their dealings with
client’s funds. Just as we live in an imperfect world so does the trading world
operates imperfectly. A lot of forex brokers are scammers; you execute an order
and see something different from what you expect.
Today I will
be discussing the different tricks forex brokers play:
( SPREAD:
As
we all know the spread is the difference between the buy and sell price of any
given currency pair and this is one of the ways forex brokers make their money.
Many brokers claim they offer the lowest spread in the market because they know
lower spread save traders money, but in some cases brokers overcharge in their
spread values, even over charging during news release by 20-30 pips. Charges in
spread values atimes are not noticed when traders are trading.
( REQUOTE:
This
is a process whereby your broker is not able or willing to give you a trade based
upon the price you entered, which is a normal thing with every broker. This
happens in a fast moving market, mostly during news release. But most brokers
take advantage of this and deliberately delay your execution mostly when you
try to close a position manually. In this case I would advice one set his/her
limit orders as not to fall a victim of this scam.
Some
brokers freeze their platform mostly during news release preventing traders
from participating in profitable trading or from closing out profitable trades.
( DELAY/NON-PAYMENT OF FUNDS:
Most brokers delay in making payment of funds
to their clients bank account after a client has applied for a withdrawal of
his/her money from their forex account , so as to tempt the client to trade
more and probably lose his/her money. In some cases brokers give funny excuses
when it comes to payment of client’s trading profit.
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