Nowadays, there are many kinds of local and international brokers. On the other hand, the traders also should be careful of the tricky brokers. As not many of them do the right things in trading, you have to thorough to choose the broker.
In other words, a tricky broker is a scam broker. It tends to harm the clients. The scam here means that the broker is not beneficially and it tends to cheat or trick the clients. Both the novice and professional traders, you have to be careful of these scam brokers.
Here are the characteristics of tricky brokers.
1. Requote
Requote is a price changing in which a trader executes the price order. If this happens in a hectic, an official broker will be affected. This happens because the demand is not valid. However, if the markets are normal and the requote is happening, so you have to be careful with this broker.
2. Freeze/Down
Freeze/down happens when the server is suddenly hanging out and the chart movement is changed when the price is at the highest in the markets. If this happens globally, it means that the condition is normal. However, if it happens only in its broker, so the broker is a scam.
3. Stop Loss Hunter
If you once knew a long spike in a market and it is not too crowded, you have to be careful. As a matter of fact, your broker is actually only taking advantage of a stop loss. The aim is clear; to lose your profit and the profit goes to the broker itself.
The scenario is a trader will face the dealing, not to the stock exchange. When a trader executes the price, the price is opening the buy or sell transaction. Otherwise, dealing will do so. If you get a loss, it will be a broker’s profit. If you get a profit, so the broker is lost. One of the tricks is to create a situation in which the client stops losing. Hence, a long spike will pick the stop loss up.
4. Price Manipulation
The most attractive thing in choosing the broker is about a small spread. However, when the trader is in the right way and getting a profit, most of the scam brokers will slow its execution down. This will influence the trading process wider than usual. The difference will be the broker’s profit.
