The first Broker Swaps Fraud Sign is excessive confirmations. If you do not receive confirmations within a few days, it is likely that the broker is not legitimate. Similarly, if you don’t receive a reply to your correspondence, the broker may be a scam artist. You should also check the address of your broker to ensure that they are legitimate. You should also check the location of the company’s offices. If you do not find a professional receptionist, this is also a sign of a fraud.
Secondly, it is possible for your broker to trade without your knowledge. There are several reasons why this might happen. The first reason is that the broker has a financial incentive to meet a certain amount of commissions. For example, he is rewarded with a bonus for meeting his target sales volume. A third reason could be personal. For this reason, he or she might feel tempted to make money on unauthorized trades. It is not a good idea to do this and it is fraud.
Second, the SD must have a policy and procedures to gather essential facts about its counterparties. Such essential facts include the legal, business, and social status of the counterparty. The SD may ask the end user for these details, if they require them to meet the standards of the financial market infrastructure. If it is not, it will not be a good idea to work with the broker. You should look for an independent third party to handle your transactions.