Dishonest brokerages use various methods to rob their clients' money and some methods could be subtle enough that they can hide behind legitimate reasons to justify such acts. If your broker refuses to process your withdrawal request or cancel your winning trades without any solid reason, you can assume that you're working with a scam brokerage. However, if they're using subtle methods, you must learn to recognize those practices.
Pip Hunting Rules
"Pip hunting" is a term to mark short term trading strategies, especially scalping. Usually, they negate this kind of trading strategies by putting rules on "minimum time" a trader must hold his position. Any attempt to close the trade before the "minimum time" passed could lead to cancellation of the trade and confiscation of profits made during that trade.
Note that these rules might be buried between tons of rules on the agreement and you won't be told specifically about this during registration. If you violate these rules, the broker could cancel your trade and have every legitimate reason to do so.
Requotes
In a volatile market, it's possible for prices to move so fast that when you're entering your order the prices already changed. As a result, your trading platform will cancel the order you just gave and give you a new price, then ask if you'll enter the order at the new price. This is called requotes and it's common to happen during volatile market.
However, dishonest brokerages have used this as a tool to prevent trader to enter the market at good prices. They simply cancel the order, then give the trader a worse price. You need to watch the requotes frequency; if it happens too often, then there is high probability that your broker is the one behind it.
Finding a broker with no requotes policy is a good solution. Just remember to make sure that the broker uses instant execution type since market execution will only get your order executed on the "next best price".
Slippage
Slippage, like requotes, is possible to happen during extremely volatile market condition. During such condition, the trading platform might fail to execute pre-defined orders (such as take profit or stop loss) at the requested prices. Instead, the orders are filled later; probably in worse prices.
While this is normal to occurs during volatile market, excessive slippage is not acceptable. Dishonest brokerages use slippage as their excuse to ignore stop-loss order, thus making you suffer more loss than you planned in your risk management.
Dishonest brokerages just keep your money themselves and never intend to trade it in the forex market, thus they'll do all they can to make sure you lose every trade. You're trading by their rules in their trading platform; as a result, you're extremely vulnerable to every trick they apply to rob your money. When you see these signs of dishonest brokerages, it is better to withdraw all your money and stop doing business with them.
Reduce your trading risk by choosing a broker with no requote policy. Here's the most recommended broker with such policy: Trading Point review. Being banned in some brokerages proves its efficiency; learn more about scalping in forex scalping system.
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