- Broker does not allow to withdraw money or violates your rights?
- You failed to resolve the issue peacefully?
- The procedure of the chargeback was not successful?
An appeal to the regulator with a complaint against a broker is the last attempt to seek justice. And even if the problem could not be solved, your appeal will at least help to stop the broker (it is logical that there should be a lot of complaints, but the complaint against the broker of every person is a step to ensure that the problem will be solved).
The filing of a complaint on the broker includes a set of actions. Simply sending letters to the post of the controller will be ignored, because it is important to comply strictly with the procedure of filing.
Important!Any deposit, request of withdrawal of funds, correspondence with customer support — all should be recorded by the screenshots, which can later serve as proof of problems with the broker.
As an example, let’s take one of the most popular regulators CySEC. People likes it because it is the golden mean between the offshore and European conservative regulators, providing relative safety. And although there are examples of inaction of CySEC, we can not call it fully useless..
Complaint against broker: algorithm
The first step is to check the validity of the license. It will be a gross mistake in the date of deposit to trust what is written on the website. And yet, if it was allowed, check the license at least before filing of a complaint. If the license is invalid complaint will not be satisfied. The license number is often listed on the website of the broker:
open the website of the regulator and right on the main page in the search string, copy the license number;
you can search a license by domain or company name, but most often the broker’s name in Russia — a brand name, and registered one is another;
the value “modified” means that the license is current and has been updated.
General information about the company is as follows:
Then go into the category of Investor Protection and click on the subkey Complaint Regarding CIFS. This page provides a form of complaint to the broker with a brief summary. The essence of annotations is to ensure that regulator does not consider individual complaints, but if there are a lot of complaints, action will be taken.
The first block of the questionnaire is simple:
All the information is filled in Latin letters only. If you have a passport, it is better to specify data. If the complaint against the broker will be accepted for consideration, the representatives of the regulator can contact you at the specified coordinates.
In the second block select the company by its registration name (see the first screenshot, the login name is specified in the license number). The second two windows – an application number and the date of its filing. There are no requirements for setting the number. Let us consider on the list of reasons more detailed:
Execution of orders— problems with orders. Slippage, the later discovery, mistakes, quotes, inaccurate expiration — all this belongs to this section. You should not select this reason without evidence, because the problem may be on your side: problems with the Internet, failures in the terminal, trade on the real volatile market, etc.
Investmentadvise — an inaccurate prediction from the broker side. On the one hand, a broker is an intermediary and he has no rights to make predictions. On the other hand, the analyst of the broker may recommend a strategy, but there is no 100% guarantee of the accuracy of the forecast. And it will be difficult to find the evidence, because every broker says that he is not responsible for this. This reason is also difficult to prove.
Portfoliomanagement — a complaint more specific to investment companies that have introduced the investor misleading by their portfolio.
Quality or lack information provided to the client —complaint to the broker that submitted the inaccurate information. Example: the provision of bonuses, but without the message that they need to be worked out. Alas, the brokers think of everything thoroughly — the fact that the investor does not read the contract, is his problem. There are always qualifying conditions that a trader might not notice.
Terms of contact/feed/charge —the breach of contract. Talking about unspecified commissions, penalties, etc.
Generaladmin/customer services — issues related to user settings and account. If the broker deducted money or just blocked the account and doesn’t return money, this is the reason.
Unauthorised business being offered or carried out— the complaint against the broker for violating the EU legislation.
Other —everything not included in previous list.
Next field — type of tool (asset) on which the complaint is made. The last two windows – comments and the amount of the claim to the broker.
The complaint against the broker is filled and it can be sent. With the number and date, you can periodically send query to the controller about the status of the application. But the regulator will react only when there’s sufficient evidence and a large number of applications (this value is known to the controller only).
If you encounter problems, try to solve them in a peaceful way and use a complaint against the broker to the regulator only in extreme cases.