In this day and age, technology has provided access to investing and trading on an unprecedented scale. While in times past it took a lot of time, resources, and specialized knowledge to profit from the financial markets, now all it takes is a few clicks or taps and some money on your bank account. We are in a new era in terms of financial involvement.
This is generally a good thing. The ease of access makes for more customers who are willing to invest and trade their money, and therefore more opportunity not just for companies and governments to grow, but also for the simple people on the ground themselves to prosper. However, the flip side is the existence of bad actors who will prey off of the innocent.
Nowadays, there is an over-abundance of brokers of various financial vehicles that can be accessed easily – but there are some which are illegitimate and are only in it to scam people. There are only a few licensed brokers, and even among them, few are trustworthy enough to provide completely transparent business operations for the customer’s peace of mind. Binomo is one such platform that I’ve discovered.
5 Ways That A Broker Can Rip You Off
My team and I did our research to determine in what ways a broker can ‘legitimately’ and ‘legally’ scam money from their clients, and we’ve compiled the results of our research below.
Hopefully, this will help you avoid bogus brokers – and if you’re already in such a situation, to persuade you to get out. Without further ado, here are the 5 ways that a broker may be ripping you off your hard-earned money!
1. Manipulating Trade Prices For Their Advantage
Every trader has their own favored financial asset and trading style, which they can apply across several platforms without any problem. However, don’t get too complacent, as some traders may just decide to use this to their advantage.
As the platform has complete control of the technology you are employing to trade, we’ve determined that they have the capability indiscriminately to change the prices of assets.
If you’ve had continuous good luck in the trading arena, the broker may just take an interest in you and tweak the prices of trades so that you will start losing. They can do this by suddenly altering the prices just as your trade is about to expire – just one tick is all it would take to do the trick and ruin your perfectly good bet. If you’re suspecting that a broker may be messing with your trades this way, log in an alternative trading platform and simultaneously monitor both platforms for sudden changes in prices. Carefully observe if your broker’s prices match those in other’s tickers.
2. Manipulating Trade Durations For Their Benefit
There are financial derivatives that have a fixed expiry time. For those kinds of assets, this means that when a trade is set up, you will not be able to change the duration of the order. Generally, the order is fulfilled according to conditions that will only happen after the time limit. If the time passes and the order is not fulfilled, the trade expires. In the case of other financial derivatives, this duration may be the difference between a loss and again.
When trading with financial vehicles that have a set time limit, always make sure the order is implemented immediately after you placed it. Ensure as well that the timer works correctly, and the expiry duration is right.
Some brokers can manipulate their timers to tick slower or faster to mess up your trade and bring more money to them. They do this because every time you lose a trade, they get a higher cut of the money than they would if they let you win.
3. Tempting You With Minor Wins
Brokers are smart – they know that the more people win, the more they gain confidence in their trading, and the more confident they are, the higher they will bet. The brokers can let you win minor trades until you start investing bigger and bigger money into your bets, and then their traps would snap shut and you will be divested of your hard-earned cash.
This nefarious tactic is applied to get you addicted to the thrill of winning, so that they’ll stay in their platform for a long time, trying to recuperate that huge loss. They will tempt you to bet more and more, and when your trades are big enough they suddenly manipulate the prices so that you suffer a catastrophic loss that even eats out a huge chunk of your capital.
They also realize that traders whose experienced wins will most likely return bearing with them more cash to try and win back what they’ve lost – and then a new cycle would begin.
4. Toying With The Server During Peak Trading Hours
This is one of the most common methods that dishonest brokers use to fleece their clients. When the expiry of your trade comes near enough that you follow it with bated breath, the server would suddenly disconnect. Since markets are in constant movements, you will find that after the server has been destroyed, you have already most likely lost your money.
5. Being Dishonest With Monetary Transactions
Sometimes, the withdrawal claim that you have made on the platform suddenly disappears like it wasn’t even there. Sometimes, the records show that it has come through but you haven’t received anything in your balance yet, and it’s been several days.
Professional, honest brokers should have a set timeline for their monetary transfers stated in their policies. Withdrawals should be processed efficiently and handled with the utmost sensitivity. If the timeline ends and you still haven’t received your transactions, immediately demand explanations from the brokers themselves.
Sometimes, the brokers play a trick where their customer support service says that they are working on the problem and give you false promises. They do this over and over until the client gives in from the hassle and frustration.
Should this happen to you, be sure to keep solid and traceable receipts (or any kind of reliable proof) whenever you file a withdrawal or deposit. Always demand an immediate receipt for the transaction so you have proof later on.
To avoid these kinds of problems, make sure your broker is socially responsible and transparent with their business operations, like Binomo, for instance.
A Broker That You Can Trust
Binomo is one of the few brokers out there that provide completely transparent services and operations. I applied myself and my team’s research on this platform. I’ll gladly say that Binomo performed up to the task admirably – which is why I have used this platform for a little bit over a year right now
More than top-class security and operational transparency, they also have great resources and tools for learning how to trade – especially with financial derivatives. They have a free Binomo demo account where you can practice techniques and strategies just as you would with real money in real markets, but without the pressure. Curious? Head over there and try it out now!
Have you experienced dishonest brokers? Let us know your experiences in the comments section below!
Good luck with your trading journey on Binomo!