When Brushing Shoulders With A Broker Goes Badly

We’re only as good as our last performance, whatever we do. If you’re a broker, maintaining your reputation and keeping a consistent performance is key – how else can you get people to recognize your expertise and trust you to broker trades on their behalf? Now, the problem there is, is that the internet is filled with charlatans and people who’re ready to lap up the snake oil, so to speak. Put simply, it’s seemingly not too difficult for people to pose as experienced traders; to ‘bless’ novices with their ‘privileged trading information’ – of course, for a ‘nominal’ fee. 

Like with anything, if there’s a gap it’ll be filled. And if people continue to enter the market with little experience, or look to other people to handle their trades while they focus on their work and personal lives, there’s always gonna be people who masquerade as the seasoned pro that they aren’t. As you can imagine, this leaves a lot of room for scams to occur, especially when face-to-face, old-fashioned relationships with brokers don’t so much apply anymore. This is especially true with those that know nothing other than doing things digitally, of course. 

It’s scams aplenty when it comes to brokers online, so before you commit, be sure to watch out for these common signs. Though, in all honesty, if you have to ask, you probably already have your answer.

No Accreditations

Wherever you’re based, a properly licensed broker will be backed by accreditations, be on required databases, and have the education to evidence the ladder they’ve climbed. In the US it’s the SEC; in the UK it’s the FCA, and you’ll be hardpressed to find any country that doesn’t offer its own alternative. 

Before going with any broker, you should be making sure that they’re licensed with your respective government organization and if they’re not, there’s no reason you should be trusting them. What’s more, there are plenty of sites out there, like BBB and Trustpilot, that can give you an idea of what the experiences of other consumers are. 

Fraudulent Software

Now, if you’re trusting a piece of broker software as opposed to an individual, you’re potentially opening yourself up to a whole catalog of scams. Not only is there manipulated figures, but if you’re really unlucky, and you pick a real bad egg, you’ll likely encounter issues like failed withdrawals too. The best thing you can do, despite the unsavory fees with many of the big names, is to go for a household brand that you can trust; that has a huge userbase that thousands of people around the world can trust. 

Identity Theft

Bear in mind that, anyone you trust with your sensitive information, whether it’s a friend or your new broker, has the capacity to use it for the wrong reasons. Now, there’s probably no reason to be worried about your friend knowing your bio information – they already have it. But, your broker? You’d be surprised what can be done with just your name, address, and contact details. 

If you’ve handed your banking information over, and you’re one of the people who’s turned to a fraudulent broker – even if you don’t know that yet – keep a close eye on your accounts. Identity theft can lead to money being stolen; credit taken out in your name, and even digital crime assigned to you.

Bad Broker? Here’s What To Do

The most important thing is that you act fast. It’s all too easy to assume that your money is gone – and when you’re given the runaround by your bank and the police when filing a report, it seems like you’re out of options. That’s not the case. 

The chargeback industry, owing to companies like Payback LTD, is known for taking swift action against these scamming brokers – putting them in a corner, exposing them to the world and getting people their money back. If you’ve fallen foul to a broker scam, you know where to turn.