In the last article, we concluded that the trader does not have to rely on domestic legislation – in case of violations by the broker, the trader is left alone with his problem. Last chance – to try to achieve justice by filing a complaint with the broker to the regulator. And how to do it correctly, in order to reduce the probability of failure to a minimum, we will describe below with the example of the CySEC regulator CySEC and the Russian organization TsROFR.
- CySEC broker complaint
The first step is to check the validity of the license (which needs to be done before starting work with a broker). There is a license number on the broker’s website, we type it in the search on the main page and write down the legal name of the company.
Next, we move from the main page to the Investor Protection menu and to the Complaint Regarding CIFS subsection. At the beginning there is a summary of the essence of which is that the broker considers collective complaints (that is, when a fixed number of individual ones accumulate). Below is a questionnaire consisting of two blocks:
- “Your Details” – detailed personal information. Information is filled in only in Latin, it is desirable to specify the data of the passport;
- “Summary of your complaint” – indicates the legal name of the company, the date of the broker’s appeal and response, the reason for the appeal and the financial instrument.
In the lists of reasons there are 8 items concerning non-payment of money, broker’s violation of the terms of the contract, account-free blocking, violation of EU legislation, problems with orders, etc. Here you can not be mistaken! Equally important is the financial instrument. For example, if you are preparing a complaint about a binary options broker, select the 6th item “Options, futures …”
It’s important not only how a complaint is filed against a broker, but what will be provided as evidence. Therefore, at each stage of cooperation with a broker, make replenishment screens and withdrawal requests, record conversations with managers on the tape recorder, save correspondence in a chat, etc.
- How to file a complaint with the CROFR
Here, the principle of filing is simpler, but the essence remains the same: it is important to gather as much evidence as possible. On the site of a broker licensed by the CROFR, there is its number. A complaint against a broker is submitted only after its official response or in the absence of a response for more than 7 days. The procedure is as follows:
- on the main page in the right menu, click “Submit a claim”;
- fill in personal data and indicate the broker with whom the controversial situation has arisen;
- specify the trading account number, the date the problem occurred and the date of contacting the broker;
- we indicate the text of the complaint to the broker and his answer (or we write that there was no answer in X days);
- in additional information, you can specify all the available evidence.
A complaint may not be accepted if personal information is not provided, if the time gap between the provision of supporting documents is more than 14 days.
Note that the feedback on the consideration of the complaint to the broker by CySEC, is much more than the CROFR. Therefore, make the right conclusions!