When you trade on the forex market you should know that you are going to be suffering some losses. There are a lot of traders who blame their forex brokers for the losses they make on the market. When you trade on the forex market you should differentiate between times that your broker may be to blame and the ones that you caused.
Scams with Forex Brokers
Forex brokers platform scams are not as prominent now as they have been in the past. Before the regulation of forex brokers in certain countries there were a lot more scam brokerage companies that lost people money. Of course, this does not mean that there are no more scam brokerage companies. There are still a large number of brokers looking to scam would be traders out of their money.
While you can blame the scam forex broker for your loss of money you should also take some of the blame. It is important that you research the broker you are going to use and determine whether or not they are legitimate. The first way to do this is to check where they are located. If they are located in a regulated country, then look at the regulatory board’s website to find information on the broker. If they are not in a regulated country you will have to rely on what other trader have to say about the broker.
Having Bad Order Execution
When you trade on the live market you are not going to get instant order execution. While this should be kept in mind there is a limit to how long the order should take to be executed. If you forex broker has taken longer than this amount of time then you can possibly blame them for a loss of profit. Of course, there is very little you can do because there is no trader recourse for this.
When you suffer from slow execution you have to consider a few points. You need to think about any other times this has happened. If this only happens once then it could have been single problem with the broker that will not be repeated often. However, if you regularly have extremely slow execution then you may want to consider a different broker.
When The Market Unexpectedly Moves
One of the most common times when a trader loses money is when the market takes a sudden swing against their trade. At these times some traders do look to blame their brokers. This is an illogical thing to do as there is no way for a broker to regulate the market. There are certain times when a trader will lose money and they just have to accept it. This is one of those times because there is little anyone could have done.
A lot of new traders and emotional traders blame their broker when there is something wrong with their order. If the trader loses money because they did not have a stop loss they often blame the broker. This is something that only the trader can be blamed for. The setting of a stop loss is the trader’s responsibility and if an order is opened without one then the trader is at fault. Many brokers do have automatic stop loss orders that are placed with a trade, but where this level is set should be checked by the trader.
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