Forex Complaints – Money Recovery
The foreign exchange market (also known as forex or FX) is a global marketplace for exchanging national currencies. In terms of trading volume, it is considered the largest financial market in the world.
To start trading in the Forex Market a potential trader must open a trading account with a regulated and properly licensed broker.
The potential trader must consider how trustworthy a broker is by executing a search to ensure it has adequate financial operating capital, how long it’s been in operation, and whether it holds proper regulatory licenses in the countries where it operates to help ensure compliance with local laws.
However, on some occasions even regulated and licensed brokers do not comply with the local laws which result in losses to their clients/traders.
A trader can face huge losses because of the mismanagement of their trading accounts, churning of their accounts and manipulation of rates made by the representatives and/or employees of a regulated broker.
When traders face such mismanagement which is against the relevant laws, regulations and guidelines, they have legal grounds to claim recovery of their money.
According to laws provides by the Cyprus Securities and Exchange Commission (CYSEC) and the European Securities and Markets Authority (ESMA) there are some steps that a trader shall follow in claiming the recovery of their money.
Firstly, an official complaint letter needs to be delivered directly to the licensed broker and within 3 months of its receipt the broker needs to provide an official response to the trader’s claims and accordingly initiate negotiations for any possible out-of- court settlement.
If a settlement cannot be achieved through that complaint letter, the trader has then the right in filing a complaint against the broker at the Financial Ombudsman to recovery of his money and further file a complaint to the Regulator to impose sanctions against that broker.
The Financial Ombudsman will thoroughly examine the complaint and investigate the broker to decide whether the trader shall be compensated or not.
The Financial Ombudsman’s examination and decision will also be forwarded to the Regulator who will accordingly decide to impose sanctions and/or penalties against the broker.
The Financial Ombudsman’s decision is not binding to the broker but in case the broker does execute the relevant decision a trader may file a civil lawsuit against the broker to execute that decision and be compensated.
Our firm extensively deals with Forex ligation related to brokers licensed under CYSEC, FCA, FSCA and has successfully recovered money for its clients who suffered losses because of such mismanagement.