How to protect yourself against forex broker scams

1.Compare price feeds. 

Imagine a horse with blinders. This horse’s vision is limited to what’s in front of him. If
there is a hurdle in front, this horse has no other choice but to exert the additional
effort needed to jump over it.

This horse is a very sad horse. If you only use the price feed on your trading platform, you are basically trading like a horse with blinders on.

You have no idea what’s going on in the rest of the forex world because you have limited yourself to your broker’s price feed. If your broker chooses to widen spreads, manipulate rates, and run your stops, you have no way of knowing if the move
resembled the general market.
You do not want to be a sad horse. Because you are a mart trader, you want to have the most complete view of the market as possible.

The best way to do this is to subscribe to a second, third, or even fourth price feed. That
way, you get another view of the market, and you’d have a chance to confirm whether price really moved the way it did.

2. Record everything. 

Always keep detailed journals tracking all of your transactions! Always, always, always!
Like in a courtroom, you need evidence to make a case. You may feel cheated, but if you
have nothing to back it up, then that feeling will remain just a feeling.

The easiest way to keep records is to take a screenshot of each order you put, each trade you take, and other suspicious broker activity like odd price feeds. Not only is this good trade
journaling, but it will come in handy if have been victimized by an errant fill. By properly
tracking the trades you take, you can assure yourself that you will always have evidence
needed to support your case in the event that you file a dispute with your broker.

3. File legal action. 

If you cannot settle your conflict with your broker, then it is time for you to take legal
action. Most brokers give in when faced with the threat of legal action, but if they do not, you can approach either the Commodity Futures Trading Commission (CFTC) or the National Futures Associations (NFA) The CFTC has a Reparations program that provides an “inexpensive,expeditious, fair, and impartial forum to handle customer
complaints and resolve disputes between futures customers and commodity futures trading professionals.

Likewise, the NFA has an Arbitration/Mediation program that helps FCM’s and their clients resolve disputes.

4. Good trading habits. 

Like a disciplined nun who wears a habit, you too should develop good trading habits.
We know that joke does not make sense, but it sounded funny so we might as well put it
here. In any case, even with the proper weapons to protect yourself against evil brokers,
the most important thing is still to become a better trader. Know that no matter how
advanced your charting software is, no matter how much time you put into finding the
right broker, no matter how complicated your trading system is, without proper
discipline, you will end up losing.
It is very easy to put the blame on brokers, but at the end of the day, it is really your choices that get you to where you want to go.