Can a Broker put on a FAKE trade & wipe out your account?

Hello,

Sorry for the lame question, but I was just wondering suppose you were to fund your account with $10,000 and work your brains out day and night and make the account $20,000.

Can your your broker all of sudden, in the middle of the night probably put on a HUGE loosing trade and wipe out 80% or more of your account?

And then make up all fake records proving that you yourself put on that trade? I don't want to mention the name of my broker, but suffice to say that it is one of the big regulated "Forex Factory Preferred Brokers"

Thank you very much, this post is just so that I can sleep a little easier at nights, I always have the jitters opening up my MT4 in the morning and noticing my account balance.

Thanking you all in advance.

Sorry gentelman for this bump, just wanted to read your kind views on this topic.

Thanks.

Are you in the hole again on a trade and don't remember putting it on.
I'm sorry fatboy - just having some fun -

No reputable broker would do such a thing. Even in the worst of bucket shops (which IMHO is most MT4 borkers) they know the real money is in running an 'honest' bucket shop and they need only wait for most customers to lose it legitimately - they do not need to resort to such activity.

I doubt if that will ever be the case for a broker to do something as unethical as that. However, there is a way you can get into a trade and not really mean to do so: Let's say you sell the EUR/JPY to open a position and set a limit for profit and a stop for loss. Things don't go as planned and you get stopped out (or a margin call if you have no stop). Some brokers may keep the limit order (in this case a buy order) open until it is manually cancelled. You forget to cancel it and the next day you wake up and it was filled. Naturally, it was filled without any regard to a trade setup, so it may or may not be profitable....most likely not.

Bottom line is to make sure all aspects of a trade is cancelled when that trade is exited for whatever reason.

Best of luck!

They sure can! Goodluck Brethren.

Leon

That's a pretty serious accusation, fatboy. If you have solid proof of this taking place you should report it.

To answer your question though, I suppose it would be technically feasible but what would be the point of an established broker jeopardizing their multimillion dollar business in order to rip off $20,000...essentially pocket change? It just doesn't make any rational sense. Besides, they don't need to do anything illegal or even unethical when they have clients putting in trades like this one:

http://www.forexfactory.com/showthread.php?t=119717

Thank you very much gentleman for your kind answers.

Mr green and opie999, believe it or not but I'm still sitting here cracking up from the replies, nothing taken to heart, you are all truly well intending people and I truly love you all.

Thank GOD I was very very lucky that the market moved back and I managed to close my positions with some averaging up and down and ended up with some profit, I will NEVER repeat that nightmare again.

Regarding my question, I am not accusing any broker, I am actually VERY happy with my broker, I just want to hear it from this community to make me feel better, which I do now.

Thank you again to all for your support. GOD bless.

Mohammad Reza.

You're a good sport, fatdude. I'm really glad to hear you managed to pull your nuts out of that fire!