Does your broker annoy you? While they can be normalized to a certain degree, there are some forex brokers acts that should become your concern.
We all know that forex brokers are one of the most supporting pillars in retail forex trading. They are the middlemen that connect retail traders to the market. Despite their crucial role, we also often find little things forex brokers do that annoy us. Below are 5 times forex brokers can be annoying, ranked from the least to the most serious case:
1. When They Spam
Alright, all of us have faced this one. Well, in most forex brokerage, the sales team has the responsibility to make the initial contact with the traders. So, if you do answers the call, it is safe to say that you will get a TON of similar calls. They will use 100% of their persuasion skill to ensure you create the live account and start trading. Sometimes they will also persuade you to invest more.
If you are smart or lucky enough not to put in your phone number, then it will be your email instead. There will be tons and lots of newsletters, either once per day or even more than that. Of course, they must do this since they can't reach you over the phone to promote their sales. So, good luck with deleting all of those sales promotion emails.
2. When They Boost Promotions and Events
Forex brokers also tend to hype some events and use them to lure you to make a deposit. They sometimes use a lot of unthinkable bonuses to entice clients to deposit more money. Of course, there are regulations and requirements that manage this type of bonus. There are also terms and conditions that need to be followed by forex brokers when giving out benefits and bonuses. However, we cannot change the fact that, for the most part, many forex brokers continue to ignore the rules.
3. When They Don't Explain Much
This one is a special case. It can be both the broker and the trader's fault. Most of the time, a newbie would lose their initial deposit due to a number of reasons. What makes it worse is when they rant out in a forum, demanding an explanation without checking market factors or their own incapabilities of managing their emotions during the trades. On the other hand, it can be that the broker did not explain many things in detail. That's a misunderstanding that is usually hard to unfold.
4. When They Fiddle with Spreads
Unregulated brokers sometimes mess around with the spreads. They didn't just do this for minor currencies, but sometimes also in major currency trades. Forex brokers can use many reasons for doing this. They can blame the liquidity provider or a news release for unreasonably widening the spreads.
5. When They Delay Withdrawals
This one might be the worse. As a trader, it is within our right to withdraw our money and profits. However, the broker might have another agenda. Suspicious forex brokers will do any means to ensure you didn't withdraw your funds. If possible, they will convince you to invest more. The higher your funds in their platform, the better it is! They might say there is problem with your account or the verification process wasn't completed.
This can be a major red flag for us traders if we trade with unreputable or questionable forex brokers. Many of them use this scheme when their scam scheme almost complete. After all of the convoluted talk about the withdrawal process, they might just tinker with the trades and make you lose all the profit you have. That's why it is very important to check all the track records and reputations of each broker.
So what do you think about these five annoying things forex brokers usually do? Which one has happened to you? And how do you face it? Share your experience in the comment section! Also, it's never too late to learn how to deal with problematic brokers the right way.