Forex & CFDs Trading Brokers Complaints
With the large numbers of Forex and CFDs trading brokers and trading platforms available on the market traders also face the risk to come across fraudulent schemes or scam brokers. Therefore it is essential to do an in-depth research before you choose a broker to sign up with. In this page we will explore the most common complaints traders have when it comes to Forex & CFDs trading.
Avoid problems! Consider using brokers with no complaints see here.
Smart traders use Australia or European licensed brokers to avoid problems and the need to complaint. Traders in Europe have the ability to take their complaint directly to CySEC. You should also see the CySEC complaints department.
Beware Of Scams
The first thing you need to do in order to start trading Forex is to open an account with a broker. Often traders are attracted by websites with professional looking design and promises for huge returns on investments, only to find out later that they have fallen victims to fraudulent practices. One of the most common complaints traders have is that after signing up and depositing money with a broker they realize that the services advertised on the website are different from those, which are actually offered.
Therefore when choosing a Forex broker your first consideration should be safety and the best way to avoid scams is to register with a regulated broker. Regulated brokers are supervised by the relevant financial authorities of the various countries and operate in compliance with all applicable laws and regulations. In addition to that, if traders encounter any problems they can file a complaint and get help in resolving the issue. It is advisable before opening an account to check whether the broker is licensed and if they are not it would be better to look for a more reliable and trustworthy Forex broker.
See List of Regulated & Trusted Brokers Here.
Understanding The Terms and Conditions Section
As a result to the lack of understanding of the trader there are accusations made against the brokers. In many of those cases traders did not read the Terms and Conditions Section before opening an account. They did not check out the deposit bonus policies. These are common complaints that can be found on m any trading forums. You need to be sure what you agree to before you sign it! Read these sections carefully because you might find some hidden clauses and do not simply hand over your money to a broker on the Internet without knowing anything about their trading policy.
Bonus Policy Complaints
The bonuses allow you to trade proportionally higher than you would be able using only your deposit. This is not a scam but part of the conditions and trading policy that are attached when awarding traders with the bonus.
Another very common issue, especially for people who are new to the Forex market, concerns bonus policies. Many brokers offer various promotions and bonuses, including bonuses for initial deposits, re-deposits, cashbacks, which could reach up to 100%. On the one hand this could be of great help for traders because they receive more money to trade with, which in turn increases the potential payouts, but often bonuses are subject to special Terms and Conditions and that might lead to unpleasant surprises later.
Many traders who are new to online trading eagerly accept the offered bonuses without realizing that this imposes some restrictions on their accounts. A lot of brokers have a requirement that if you accept a bonus you have to reach a certain trading volume before you are allowed to withdraw your funds. Since this trading volume could range between 20 and 60 times the value of the deposit, the overall sum you need to make before being able to get your earnings can be quite large.
That’s why it is essential to read carefully the Terms and Conditions and especially the Bonus Policy section most brokers have on their websites.
You have an issue if a broker intentionally or not credits your account with a bonus that you did not ask for. Some brokers have this process automated usually associated with an initial deposit or welcome bonus. The trader may have the bonus credited to their account balance. To resolve this situation we advise you to immediately contact the brokers Customer Support and request the bonus to be removed before your first trade.
When you try to deposit funds to your account the amount can sometimes not be credited. This can be disconcerting for the trader as they may think they have been scammed. If this happens contact the support and your bank to check whether the deposit is made or not. Also keep in mind that the crediting of a deposit may take a minute or two and a bank transfer can take up to 2 days.
The broker may close an account if they have a reasonable evidence that there is a certain fraudulent activity on the account, or some consequence of another issue that have taken place between the trader and the broker regarding the conditions. In the most cases the account closure can be re-opened as fast as it was closed.
Getting money into your account is simple because brokers accept a wide range of payment types. But this is not the case with the withdrawals not only because of your broker but also due to regulatory requirements and bank processing times that can be the reason for the delays.
Usually the Forex brokers’ deposit procedures are straightforward, quick and there rarely are problems when traders put money into their accounts. When it comes to withdrawing funds, however, some issues may arise. There are several issues with the withdrawals – delayed withdrawals, verification issues and declined withdrawal.
First of all you have to provide certain documents needed to verify your identity. These include a copy of a government issued photo ID like driver’s license or passport, a copy of a recent utility bill as a proof of residence and if you use a credit or debit card as a payment method you have to send a scanned copy of the front and back of the card. The regulated brokers are not trying to steal you identity. They ask for your personal details in order to prevent possible fraud.
Traders often complain that the withdrawal procedures are slow and they have to wait for a long time until they receive their earnings. After a request for withdrawal has been placed, the processing takes several business days and if you use a wire transfer the wait is even longer so it is recommended to read carefully the broker’s Terms and Conditions to see exactly how long it takes to receive your funds. There have also been complaints about the taxes charged when making withdrawals. Transactions via credit cards are usually free, but for bank wires there could be a fee between $25 and $35, so make sure to check what taxes the broker charges for withdrawals via different payment methods.
This issue may cause a lot of unpleasant experience for the traders. It can be very difficult to resolve it. A withdrawal may be refused by a broker without explanation, but the most common explanation is a violation in term and conditions.
Problems With The Broker’s Software
There may be a situation when the broker’s software stops responding. In this case you will be disconnected and removed from the current trade. All software can have an unexpected bug. Our advice is to stop trading right away and contact the broker’s support to let them know what happened.
Auto Trading Signals
The Internet is full of websites for auto trading software and Forex signals providers proclaiming winning rates of more than 90% and promising huge profits based on accurate trading alerts generated by advanced algorithms and sophisticated mathematical models. Yet many traders complain that once they sign up it turns out the software doesn’t work the way it was advertised, the signals are not accurate at all and there is nothing they can do about it because the settings cannot be changed.
Auto trading robots and signals are meant to assist traders, to make the trading experience more flexible and to minimize risks, but you will still need to put in some effort. Therefore it is advisable to choose a Forex robot or signals provider, which has many customizable settings and allows you to exercise maximum control over the execution of trades. In addition, always make sure the signals provider works with reliable and regulated brokers in order to avoid scams.
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Traders also often complain about the customer service and the assistance of personal managers. In many cases the broker claims that all clients, who open an account with them will get a personal account manager to help them optimize their results and assist with any issues. However, later it turns out that personal account managers are available only to those who select a higher level type of account or the range of issues the manager can help with is limited. That’s why it is essential to read carefully all the information about the offered account types and what services each one entitles you to. Furthermore, it is better to choose a broker with customer support available via a wide range of communication methods. Most importantly, it is recommended to select a regulated broker that will ensure a safe and secure trading experience.