protect yourself from broker scams

 While you may feel like a dwarf in the midst of big brokers, that doesn't mean you have to accept deception and injustice!

 Don't be discouraged if the broker gets all the profits, There are some simple steps to help your chances.


 Compare price feeds


 Imagine a horse with an eye patch.  This horse's vision is limited to what is in front of it.

 If there is an obstacle ahead, the horse has no other choice but to exert force to jump over the obstacle.  Very tiring!

 If you only use prices on the trading platform, it's like trading like a horse with a blindfold on.

 You don't know what's going on in the market, because you limit yourself to the broker's price feed.

 If a broker chooses to widen spreads, manipulate rates, and execute stop losses, you won't know if the moves resemble the general market or not.

 Become a blind horse who can't see ahead.  if you are a savvy trader, of course you want to have as complete market knowledge as possible.

 It's best to subscribe to a second, third, or even fourth price feed.  That way, you will get another view of the market and have the opportunity to confirm whether the price is actually moving in that way.


 Record Everything


 Always keep a journal that keeps track of ALL transactions!  Always, always, always!  Like in a courtroom, there must be evidence to make a case.  You may FEEL cheated, but if you don't have anything to support your statement, then feeling cheated is just a feeling.

 Take screenshots of any traded orders or suspicious broker activity, such as strange price feeds.

 This will be useful if you have been a victim of fraud.  By tracking every transaction, you will always have the necessary evidence to support each case as a tool to hold the broker accountable.


 File legal action


 If you are unable to resolve the conflict with the broker, then it is time to take legal action.  Most brokers will either give up when faced with this threat, or you can approach the Commodity Futures Trading Commission or the National Futures Associations (NFA).

 The CFTC has a Repair program that provides a “cheap, fast, fair, and impartial forum for dealing with Customer complaints.  You can check out their program here.

 Likewise, the NFA has a mediation program that helps resolve cases.  For more information, please visit the NFA website.


 Good trading habits


 As a Monk self-disciplined person, you must develop good trading habits.  We know this joke makes no sense, but it sounds good and can be tried.

 However, even with the right weapons to protect yourself from bad brokers, the most important thing is to remain a good trader.

 No matter how sophisticated an application is, no matter how much time is spent finding the right broker, no matter how complicated the trading system, without strict discipline, will end up losing.

 It's easy to blame the broker, but at the end of the day, it's all your choice with financial goals planned in advance.

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