Broker Complaints

Broker Complaints

A Guide to Broker Complaints

Online trading is growing dramatically. As more people spend time online shopping, socializing, and working, it is natural that trading is another activity that is easier through digital services. However, along with effective trading platforms and reliable brokers who are providing a steady return for investors, there are unfortunately problems that can arise that lead to broker complaints. These complaints don’t just apply to scam brokers, but to regulated brokers who may not be serving their clients the way they should
If you have a broker complaint, speak to Broker Complaint Registry. We will provide guidance and refer you to experts who will help you draft your broker complaint. We have assisted thousands of clients and have matched them to the right services.

How to Select a Broker

An ounce of prevention is worth a pound of cure. This is definitely true when it comes to selecting financial services. The internet is filled with scam brokers but it also provides a wealth of resources to research brokers and discover which are reliable and will offer the best services. The following are basic features of any reliable broker:
  • Regulated with a license from a top tier regulator
  • Transparent information about fees, spreads, commissions
  • Clear descriptions of account types and platforms
  • No unusual fees or strange rules regarding withdrawals
  • Authentic contact information, such as a verifiable phone number and address
  • Reliable customer support that answers questions thoroughly
It is important to take your time when choosing a broker. Base your examination on what you actually observe and your own researches. Broker reviews can be helpful, but since it can be hard to verify which are fake and which are genuine, reviews should not form the sole basis of selecting or rejecting a specific broker.
The most essential features of those listed above are the type of license the broker has and information about the fees, commissions, spreads, and withdrawals. A current license from a top-tier regulator as well as clearly stated information on the site and the terms and conditions are signs that the broker is legitimate.
However, even though a broker may pass the initial test, that doesn’t mean you are 100% safe from unscrupulous activity or will never need to make a broker complaint. Even regulated brokers do things that justify complaints now and again, so always stay vigilant when working with any financial service.

Reasons for Broker Complaints

As stated above, a scam broker is definitely a reason for broker complaints, but licensed brokers may also need to be reported now and again since no service is perfect and problems sometimes arise. If any of the following happens, it may be necessary to make a broker complaint if the broker:
  • Does not comply with terms and conditions
  • Will not fix an error in the transfer of money
  • Is suspected of making unauthorized transactions
  • Refuses to execute transactions
  • Is overly aggressive in pressuring clients to make trades
  • Does not disclose their own holdings
  • Charges fees or makes rules not agreed upon initially or published on the site
  • Cancels account
  • Does not communicate with the client
  • Does not explain why the client won’t log-in
  • Will not release funds
All of these practices are hallmarks of a scam broker. However, they may even happen with brokers you have been trading with for some years. Keep in mind there may be a technical problem to explain some of the above or perhaps the broker is facing difficult times.
However, if no satisfactory explanation is provided, these problems keep happening or occur for an extended period, it is important to make a complaint. Even if the purpose is not to scam the client and to delay paying when the broker is facing financial problems, this is still not fair to the client, and filing a complaint is recommended.

How to File a Broker Complaint

If you are dealing with a regulated broker, you can file a complaint with the regulator. This situation demonstrates why it is important to work only with a licensed broker. Unregulated brokers can get away with fraudulent activity because there is no regulatory oversight.
Although law enforcement can help depending on the type of fraud, a regulator can more quickly impose sanctions on a problem broker or inform them that there are complaints against them that are being investigated.
Sometimes filing a complaint with a regulator can be enough to get action from the broker, particularly if they are legitimate. However, working with experts, such as those referred by Broker Complaint Registry can help you draft a complaint that will make an impression on regulators and is more likely to be effective.
Keep in mind that filing a complaint is not the same as fund recovery unless the broker is motivated by the complaint to release your funds of their own free will. In the case of uncooperative brokers, broker disputes or scam brokers, the road to fund recovery can be rockier and it may be necessary to take additional steps to get your money back.

Will Filing a Broker Complaint Be Effective?

Whether or not filing a broker complaint will be effective can depend on what you want to achieve. If you simply want to register a complaint about a broker to get better service, it is likely to be effective with a regulated broker. There are, of course, no guarantees, especially in the case of a broker who has received many complaints and has become desensitized to them.
If your goal is to get your money back from broker who has a lock hold on your account, a complaint may spur them on to action. Then again, if the broker digs in their heels and won’t return the money or has disappeared or ghosted you, the broker complaint is only a starting point and you will need to take further action.

Do You Have a Broker Complaint? Broker Complaint Registry Will Help

Contact Broker Complaint Registry experts if you need to make a complaint against a broker. We deal with a variety of issues, including data theft, broker scams, and crypto complaints. Our team will refer you to experts who have vast experience dealing with regulators, banks, and law enforcement. We will provide advice and give you valuable guidance to help you get a refund.