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Fraudulent brokerages use numerous techniques to rob their clients' money and some techniques can be subtle enough that they can hide behind legitimate reasons to justify such acts. When your brokerage keeps stalling your withdrawal or confiscate your profits without valid reason, you can be positive that it is a dishonest brokerage. Nonetheless, if they're using subtle strategies, you must learn to recognize those practices. Pip Hunting Policies "Pip hunting" is a phrase to indicate short term trading strategies, specifically scalping. Typically, they eliminate this kind of trading strategies by putting rules on "minimum time" a trader must keep his position. Any attempt to close the trade prior to the "minimum time" passed can result in cancellation of the trade and confiscation of profits produced during that trade. Be aware that these policies may be buried between tons of rules on the contract and you will not be told specifically about this throughout registration. If you breach these rules, the broker could cancel your trade and possess every legitimate reason to do so. Requotes In a volatile market, it's possible for prices to move so fast that when you're placing your order the prices already become different. Hence, your trading platform will cancel the order you just gave and provide you with a new price, then inquire if you'll enter the order at the new price. This is called requotes and it is common to occur during erratic market. Even so, fraudulent brokerages have used this as a tool to prevent trader to enter the market at good prices. They simply cease the order, then provide the trader a worse price. You should watch the requotes occurrence; if it takes place too often, then there is high probability that your broker is the one behind it. Selecting a broker with no requotes policy is a great solution. Just be sure you make sure that the broker uses instant execution type because market execution will simply get your order carried out on the "next best price". Slippage Slippage, just like requotes, is possible to happen during exceptionally erratic market condition. While in such condition, the trading platform might fail to carry out pre-defined orders (such as take profit or stop loss) on the required prices. Instead, the orders are filled later; almost certainly in worse prices. Even though this is normal to occurs during volatile market, excessive slippage is not acceptable. Dishonest brokers use slippage as their excuse to overlook stop-loss order, therefore making you suffer more loss than you designed in your risk management. Fraudulent brokerages just keep your money themselves and never intend to trade it in the forex market, hence they'll do all they can to ensure you lose every trade. Being trading by their rules and utilizing their trading platform, tackling your trades isn't a difficult thing to do for them. When you notice these signs of scam brokerages, it's better to withdraw all your money as fast as possible. Decrease your trading risk by picking a broker with no requote policy. Here is the most recommended broker with such policy: TradingPoint review. Being banned in some brokers shows its effectiveness; learn more about scalping in forex scalping strategy.
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