On the whole, Forex trading is a smooth operation. In many cases, trades are executed within milliseconds of being sent through to the exchange – and the same is true for orders which are being placed.
However, on the odd occasion, things can go wrong. This is usually confined only to Forex brokers who do not route trades directly to the Forex trading floor, and instead execute trades manually or with their own systems.
If you feel that your trade has been executed unfairly, as a prop firm result of Broker error, you might want to dispute a particular trade and try to seek reimbursement for the money you lost. If this is the case, you will need to submit a dispute form on the prop firm broker’s website.
Submitting a Trade Dispute Form
Whilst this doesn’t happen very often (brokers try to minimize errors and mistakes as much as possible) – we have heard of a number of cases where traders needed to submit a dispute form as a result of a trade being placed or closed incorrectly. Whether the trade was opened at the wrong price, or closed at a price far away from the actual quote price – just be aware that everything you do on a Legendafx platform is recorded, and therefore there are records of trades and orders as they are placed.
To submit a trade dispute form, simply follow the steps listed on the Forex broker’s website. These will usually require the following information:
The currency pair you placed the trade on
The time of the trade
The ID number of the order or trade
The reason why you are wanting to dispute the trade
The reason why you believe that it was the broker’s fault instead of your own error
There will obviously be spaces on the forms for you to put all of this information. We recommend that you be as comprehensive and detailed as you possibly can, so that the broker is able to look at as much information about the case as possible.
Dispute Resolution
Following the submission of your complaint, it could take up to 30 days for the Forex broker to review your dispute form and take action. They will need to go back in their own system and check to see what actually happened, and therefore why you feel that you were hard done by.
Following this, they may or may not offer you compensation, based on the individual claim.
2 Alternatives to the Spot Forex Market
What many Forex traders do not know is that there is actually more than one type of Forex market to trade on. Yes – most brokers will only offer one (the spot Forex market) – but there are a few Forex brokers out there who have flexibility as to the market that you are able to trade on.
In this article, we will take a look at the other Forex markets, and try to examine the difference between them and the spot market. This should provide you with a better idea of exactly which market is best for your style of trading.
The Forward Market
The Forex forward market is an entirely separate market from the spot. You will find that when looking at currency pairs in the forward Forex market, the quotes are completely different to those found on the spot rates.
This is a function of what the market is actually providing. As you might have gathered from the name of the forward market – this particular arena is offering rates to buy foreign currencies in the future. There are a number of different quotes for different time frames. For example, the following time scales might offer different rates to trade at:
1 month
3 months
6 months
12 months
Many spot Forex traders utilize forward rates to help them predict the future movements of a particular currency pair. The reality is that a 12 month forward Forex rate is the price that traders expect the currency pair to be trading at on the spot market in 12 months time, and therefore this is often a good measure of the future moves of the market.
Swap Rates
Another market entirely separate from the spot and forward Forex markets is the Swap Market. This market is used in complex currency trades, which are often far beyond the needs of mainstream retail spot traders.
Swap rates are those which are used when transferring real currency from one country to another, without the need to actually convert the currency. Whilst the swap rates are often similar to spot market Forex rates, the swap market also has time scales just like the forward market.
Swap rates are used by large corporations trying to hedge their overseas exposure, or by importers and exporters who do not want to trade a particular currency pair at the current time, but still need to pay their counterpart in another country. Often, the swap market doesn’t even get a mention by Forex brokers because of its complexity.
