Everyday we receive another email from an investor with a complaint about a broker that stole their money.
The complaints range from legitimate to the absurd. The bottom line reason for 99.99% of broker complaints has to do with the trader not reading the brokers terms and conditions.
Scam Trading Robots
Trading robots are probably the number one reason for broker complaints. Trading robots are automated trading systems that connects to the traders account and places trades for the trader.
The trader has very little control over which options the robot trades. Many brokers provide their own auto traders, read the various automated trading robots.
If you are interested in trading with a specific broker, make sure not to connect your account to a trading robot, or you may check one day and see your account has a zero balance.
Go directly to the brokers site and open your account, not via the trading software.
Bonus Money Complaints
Brokers offer traders a 100% bonus, but it comes with strings attached.
Investors will complain that they cannot withdraw “their money” but when they actually read the brokers terms and conditions page, they will see that the bonus money is not actually theirs.
Bonus money only becomes yours to withdraw once you have fulfilled the trading requirements. Visit your broker and read their terms and conditions page, and see what the trading requirements are.
Fake Analysts & Expert Traders
Another classic complaint is the salesman calls from the broker and tells the investor that, if they deposit another $5,000, then they will get free advice and trading signals.
Then the salesman whose job it is to help the trader lose money, tells the trader to place a trade with all their money! The trader loses all their money, the broker makes money, and then the trader complains that the broker is a scam.
There are two types of brokers, Licensed and Unlicensed Brokers. Licensed brokers must follow the rules that their regulator puts in place. An unlicensed broker can do whatever they want because there is no government agency overseeing them.
Remember! Before you start trading with a broker, read the brokers terms and conditions page. Read their bonus policy page. Call the broker and ask them your questions before you deposit money into their online trading site. If they don’t answer the phone when you call, do you think they will answer if you have complaints for them?
Withdrawals from brokers are processed manually! Deposits are automatic. The only way to withdraw money from you brokerage account, is if your account has been verified for Anti Money Laundering laws. Traders need to submit documents to verify their identity in order for the broker to process your withdrawal.
Credit Card Charge Backs
Many investors have had success by going to their credit card company, and filing a claim for fraud. Sadly, the scammers are fighting hard to prevent investors from doing this. These fake brokers will fight your claim and produce documentation showing your credit card company that you agreed to their terms.
If you are having trouble getting your money back, and you have a large claim (over $5,000), then a company like MyChargeBack.com may be able to help you.