As the lesson learned from scam brokers such as CJ Trade or MT6, we know that traders only can make money when they trade with trusted brokers. Currently, 90% of brokers of options trading platforms trick their traders. Below are some of their tricking methods.
Manipulate the prices so that the trade result will be profitable for brokers
Each different broker applies a different trading model to the platform under its operation. Each model has different pairs of currency, indexes, etc, as a trading basis. All of the indexes fluctuate dramatically.
Therefore, the broker can secretly use some tricks to manipulate the prices in a short period. If traders focus on short options, they will easily fall into the broker’s traps. As a result, just a difference made by brokers can bring for themselves a lot of profit.
It is very likely to happen because brokers control the game. On the other hand, changing the prices makes traders lose in the options. It may also encourage them to trade more due to their inability to control emotion.
Prolong the expiration time of the option
Besides the price movement, traders also have to encounter the expiration time. Traders will open continuous options with expiration time from 30 seconds to 60 seconds to satisfy their desire to win a lot of money. At that time, the broker makes the clock run faster or slower. Then traders may lose in an option that they could have won.
Encourage traders to trade more
This is how brokers take advantage of traders’ greed and over-confidence. Beginner traders usually start with a Demo account or a real account with a small investment. Since brokers know what beginner traders think, they will adjust the winning probability of those traders’ accounts higher.
As a result, the more the traders win, the more they dare to invest. At that time, brokers’ trick will make traders end up benefiting the brokers and harming themselves.
Disconnect error
This is a dirty trick of some online trading platforms. You are observing the price movement of the option which is definitely profitable. Suddenly a disconnect error occurs and you lose. You cannot explain this error because you are not certain whether the fault belongs to the website or your network. You may successfully report the error but you can only get the refund for the money you lose due to that “disconnect error”.
Cause difficulties when traders withdraw money
In some trading platforms, traders can deposit fast but cannot withdraw money smoothly. If traders report the situation, they often get the typical answers such as “financial transparency verification”, “money laundering check”.
In the end, traders are unable to withdraw their money although brokers promised again and again. In this case, it is difficult for traders to report brokers and get their money back. It’s because most trading platforms work online and traders only can contact by email.
Limit option’s investment
Olymp Trade is the broker that recently becomes “famous” for this problem. It limits the investment for each option. Olymp Trade also prevents traders to make up for what they lose and make them very dissatisfied about that. Therefore, you can trade options on any platform if you trade just for fun. But if you aim for money, you should choose a platform that does not limit the amount of your investment.
If you want to check the reliability of any option trading platforms, you can refer to the guide of this article: How to check the credibility of an options trading platform.
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