Complaint to the broker: reasons, goals, rules of execution

Complaint to the broker: reasons, goals, rules of execution

First of all, it is worth clarifying a few points:

  • Any attempt to solve a problem with a broker should begin with contacting his support team. No regulator will accept an application for consideration if there is no attempt to resolve the issue initially with the company itself. Only when the broker gives an official answer and the problem is not resolved, it is possible to file a complaint to the regulator, relying on a previous dialogue;
  • The claim is submitted not only to the regulator but also to the ombudsman of the jurisdiction in which the broker is registered;
  • It is important which division of the broker you work with. European regulators are allowed to work only with residents of the region, therefore, units with offshore registration are created for Asian and other markets. If the broker is licensed by CySEC or FCA, but the trader works with a unit registered in Belize or the Marshall Islands, then it makes no sense to file a complaint with European regulators.

Theoretically, the presence of a license from a broker should mean that:

  • the regulator carefully monitors the financial statements of the company, according to the results of an external audit, capital adequacy and the broker’s ability to respond to their obligations are assessed;
  • The segregated account management rule is tightly controlled. The accounts of traders are separated from the operating accounts of a broker who manages only his money;
  • conflict of interests between the broker and the trader is excluded.

In practice, disputes between brokers and traders have always been and will be. The most common cause of disputes is the problem with the withdrawal of money. And although partly the traders themselves are to blame for this, who do not read the offer, violating the trading rules established by the broker, it happens that the brokerage company itself tries its best not to return money under any pretext.

In what cases is it appropriate to file a complaint with a broker:

  • the rights of the trader are violated: there is 100% confirmation of the manipulation of quotations, money is not given out without explanation of reasons, an account is blocked with violations of the clauses of the offer (contract). There are signs of bankruptcy;
  • The broker flatly refuses to fulfill his obligations and does not try to meet the client’s needs, defending his position. The problem is not resolved even with help desk;
  • we are talking about large amounts of unpaid money. It is logical that consider a complaint about the payment of 100 dollars. The United States will be unlikely. However, there is no border with which the consideration of the complaint begins, so it’s worth trying anyway.

The fact that in the future it may be necessary to contact the regulator must be foreseen in advance. Alas, many applications of traders are rejected by the Commission due to the lack of evidence, which, just in case, needs to be collected in advance. A few tips on this:

  • Before replenishing the deposit, you will receive confirmation that the verification has been completed and that no problems will arise in the future;
  • keep proof of replenishment of the account: statements from the electronic wallet, card, screenshots from the account, where it is clear that the money actually came into the account;
  • fix with the help of screenshots everything that may come in handy in the future: trading platform charts, the profit received. Since the broker is most often not a tax agent, he is obliged to provide an account statement. Request it periodically. In case of account blocking, make screenshots of your personal account;
  • keep any correspondence with customer support.

In the event of a problem, the first step of the trader is to contact the broker support service. The claim should contain as much specificity as possible: account number, date of occurrence of the problem, a clear statement of the essence with as many numbers as possible (amounts, quotes, time intervals). There should be informed about what was done before the problem came. It is logical that an application such as “The platform slows down, the broker refused to help,” will be rejected.

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