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Ask Your Advocate: I Got Screwed

19 Years ago | March 24, 2014 10/17/21, 12:00 AM

Question for the Advocate:

I got screwed by a forex broker who put false trades in my account. My problem is that I was trading with a broker who I thought was regulated by Australia but it turns out my account is with an office that is under a different name located elsewhere. There is no regulation for this broker. It is a scam. What can I do?

Your Advocate Says:

jay meislerIt is easy for any forex broker to setup a professional looking website and it is up to the prospective client to do his/her diligence to find out more about the broker. The first thing you need to do is find out where the broker is headquartered and whether it is regulated by any of the main regulatory bodies (e.g. US, UK, Australia, Japan). Some list sales offices with telephone numbers that make it appear that this is where they are located. If a broker makes it hard to find out where it is actually located then that is your clue to run for the hills and look elsewhere. See this article for more on this subject Why Do Many Forex Brokers Hide Their Locations?

As for your issue, it is difficult to get it resolved if the broker is not regulated as there is no process available where you can try and resolve a dispute. You can try the local legal system but that may be a difficult route and the costs would probably not make worth your effort unless a lawyer is willing to do it on a contingency basis.

One option is to try moral suasion by publicizing your situation to pressure the broker if it wants to avoid negative publicity. In this regard, we have contacted the broker and will see if we can get it to respond. So far we have not heard back from the broker. We will keep you informed.

Note: The broker’s name has been omitted as well as the details of this situation as we are not in a position to make judgment on it without specifics. We are taking it seriously and will do our best to make contact with this broker.



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