Things to Pay Attention to from Cheating Brokers
For traders who intend to enter the futures trading business, they must be careful not to let traders decide to enter this business because of the lure of profits or convenience. The most important step in joining this business is choosing the right broker (broker) where the trader will trade later. The number of scam or fraudulent brokers makes traders have to be extra careful because this is difficult to see from the side of the trader with the naked eye. The following are unethical patterns that are often carried out by rogue brokers:
Very Unethical Marketing Method
The majority of public complaints stem from the fact that the marketing personnel employed by brokerage firms are opportunists who do not understand the essence of futures trading and lack knowledge of business ethics. As a result, many traders are persuaded to transact, even though they do not know, are not ready and are not even financially fit to participate in transactions.
Cheating Brokers Practice Bucketing
Bucketing practice is done by reducing or shrinking the portion of a trader's transaction that should be with the aim of benefiting the broker himself. Illustration of Bucketing practices that often occur in local brokerage firms:
The customer enters an amount of IDR 500 million while only IDR 100 million is recorded at clearing, while the rest is accommodated by the broker. This transaction is not in the correct schema. With such fraudulent practices, the customer is always at a loss because the funds he deposited sometimes return but are in a loss condition or even not returned at all. Customers should not fully trust a broker or broker, even if they have to use the services of a broker or broker, the report must be monitored in detail.
Rogue brokers who are caught doing bucketing practices can have their operations frozen. Usually rogue brokers will provide a segregated account number that is not registered with the Indonesian Clearing House (KBI) or a fake segregated account. To see the number of segregated accounts registered with KBI, see the PT Kliring Berjangka Indonesia website (www.ptkbi.com).
Brokers Take Advantage of Trading System Weaknesses
Because BBJ, BKDI and KBI have not been able to provide a trading system platform that meets the requirements, the organizers of the Alternative trading system develop their own transaction technology. Rogue brokers can take advantage of this weakness by not giving customers access to open positions and their fund positions, transactions are often not reported to customers, the system can be "set" in such a way as to unfairly benefit the owner of the system.
To avoid malpractice by rogue Brokers, you should always be critical of any product offerings by Brokers, don't be seduced by huge profits. Choose a broker that provides the best service, is transparent, offers the best prices, competitive transaction fees, makes it easy to withdraw funds and chooses a broker who always reports on the customer's fund position when you transact.
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