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How to file a complaint against a broker


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How to file a complaint against a broker

  #1 (permalink)
 
Big Mike's Avatar
 Big Mike 
Manta, Ecuador
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Swing Trader
 
Experience: Advanced
Platform: Custom solution
Broker: IBKR
Trading: Stocks & Futures
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Posts: 50,493 since Jun 2009
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How to file a complaint against a futures broker:

https://www.nfa.futures.org/complaintnet/complaint.aspx

You can lookup the firms NFA Broker ID from within the complaint form. It will also ask for any details about your complaint, and your contact information.

If you want to additionally file a CFTC complaint:

https://www.cftc.gov/complaint

The CFTC complaint can be done in addition to the NFA complaint.

Why do I share this information? Simple. Many members of our community have run into unfair business practices from their broker. Whether it is lying about all-in commission costs, or conveniently "correcting the problem" with billing you one commission but promising another, or technical issues that result in losses that are their fault, or even mis-management practices such as accepting borderless bank transfers (against KYC or AML one would think) ...

The thing is, when you step back and take a wide-angle view like me, you see a lot of these things repeat themselves frequently. Especially the commissions one. But as an individual trader, you may think "oh, it was an honest mistake and they fixed it now". But if they do it routinely, it is simply a money making endeavor/scam on their part.

Why is it so important? Because you are putting all of your money at risk when you trust an FCM to hold it. There is no insurance when dealing with FCM's. SIPC only applies to equities, and to my knowledge the only futures broker that sweeps excess funds to a SIPC account is IBKR.

Mismanagement of a broker/FCM is crucial. Leadership is from the top, so if multiple problems exist in their ranks, then eventually it can lead to closure of the FCM and loss of all clients money. Having your money in a segregated account is no guarantee, just look at all the past FCM's that went belly up and left their clients with losses.

So please, take the time to file an NFA complaint if you have been wronged by your broker. Let the NFA decide if their is a pattern worthy of action.

Mike



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  #2 (permalink)
 grayfrog 
Los Angeles, CA
 
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I second this. While your claim may be judged dubious it is important to keep the broker/FCM above water in their dealings. If multiple claims get made the regulating body will see the pattern that the individual might not.

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  #3 (permalink)
 kingoliver 
Los Angeles, CA
 
Experience: None
Posts: 14 since Apr 2014
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Thanks Received: 33


I have a question. Where would the appropriate venue be to talk about an issue. I have one that I'm sure other have experienced (but is not completely clear who and what is at fault), and think that public knowledge of it, regardless of result, would help not only the community, but hold everyone accountable and bring to light the fuzzy area and line that is walked.

Just knowing how to approach claims and issues, knowing what is and isn't out of each parties control would benefit many people IMO.

BTW, mine has to to with incorrect, provable fills from a data feed and a company that 'evaluates' and creates a 'combine style' to introduce traders to funded accounts from a firm.

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  #4 (permalink)
USS Liberty
Pittsburgh PA
 
Posts: 37 since Jul 2018
Thanks Given: 8
Thanks Received: 7

I'm currently transferring my TradeStation futures account to a different broker, and on my latest statement all of the contracts that were transferred were charged the standard TS commission of $1.50 per contract as well as exchange and clearing fees, as well as NFA fees. When I called TradeStation they said it was their company policy to do so.

Here is the page which lists the fees TS charges: https://www.tradestation.com/pricing/service-fees/

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Last Updated on November 10, 2021


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