Snafu Caused by Introducing Brokers!

An introducing broker (IB) acts as a middleman who is seemingly welcome in the forex market, passionately opening accounts and making recommendations for clients. However, this pattern has triggered a range of chaos owing to the lack of regulation. Tricks played in this field are disclosed herein for your reference.

Fraudulently return commissions

Aiming to bolster the customer acquisition, forex brokers promise IBs the commission return. The latter use part of commissions in turn to tempt clients, the precondition for obtaining which is that they open accounts to make deposits or trade. Anyhow, all costs involved should be borne by customers.

Increase spreads

IBs are connived by some forex platforms at increasing spreads and profiting from this conduct, the acceptance intending to energize them. This undoubtedly augments trading costs paid by traders.

Unveil virtuosos skills

Traders often see tactics of so-called ‘tutors’ presented in chat groups built by IBs. Although tips seem to be free, beginners may pay the price at the end.

• A live sharing stimulates traders to operate transactions more frequently, thus increasing commissions gained by platforms.

• Free tactics are used to facilitate customer acquisition, and paid VIP services can be promoted thereafter.

• Users are led to hefty losses by IBs who share skills, delegate trade execution, and covertly operate the Valuation Adjustment Mechanism (VAM).

We respect brokers adhering to professional ethics but are alert to those who stop at nothing to make money!

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