How brokers cheat traders?
In today’s world the brokers will do whatever to increase their revenue. We are not saying wrong about that, but they should consider the investors who rely on them and they are not guiding the investors in a correct way. The brokers are not trying to make understand the investors about the risks in the market. Because the brokers rely on the traders for broker office rent, electricity bill, telephone charges, salary etc and they are encouraging the traders for the daily trade. They are encouraging the traders to buy the stocks that are recommended by them and also they will say if they do that then they will be able to make profit of about 10% to 30%. But they are not saying the risks that are involved in the trading. The brokers are converting the long time investors into a short time. If the stock price bought by a trader increases, then they will get a call from the broker office that the stock price has been raised up and the broker will recommend selling those stocks. Here the brokers to earn revenue for them, they will make the traders to do more trading. We are not trying to make or find fault on the brokers, but 90% of the brokers are like this.
The investors should not allow the brokers to trade from their account, because they will trade like they wish to earn more commission.
We are not only saying brokers are making messes up in the market but also the investors. Some investors will invest one lakh in the market and will ask the broker that they should earn ten thousand (10,000) per month and some traders will ask above that. In today’s world, there are many brokers available in the market and most of them nearly 90% do not know about F&O clearly. The traders who lost their money by trading are the main brokers in today’s market. So investors should carefully study about the market before they invest.