How To Handle Legal Steps Against The Unauthorized Trading Broker?

If a broker makes unauthorized trades with your account balance and causes it to go into a negative balance, you should take the following steps:

1. Document Everything: Keep records of all communication, transactions, and any evidence that supports your claim that the trades were unauthorized.
2. Contact the Broker: Reach out to the broker immediately to inform them of the unauthorized trades and the resulting negative balance. Provide them with any evidence you have. This could include screenshots of your account history, trading records, and any correspondence with the broker.
3. Dispute the Trades: Request that the broker reverse the unauthorized trades and correct your account balance. Clearly state that you did not authorize those transactions.
4. Formal Complaint: If the broker does not respond satisfactorily or does not take corrective action, consider filing a formal complaint with the regulatory authority that oversees financial services in your jurisdiction. In Australia, this authority is the Australian Securities and Investments Commission (ASIC). They can investigate the matter and potentially intervene on your behalf.
5. Legal Advice: If the issue is not resolved through a communication or regulatory intervention, you might need to consult with a legal professional who specializes in financial matters. They can advise you on the best course of action based on the specific circumstances of your case.
6. Protect Your Account: In the meantime, ensure that your account is secured with strong passwords and two-factor authentication to prevent further unauthorized access or trading.

Remember that unauthorized trading and negative balances can be complex issues, and the appropriate actions to take depend on various factors including the broker’s terms and conditions, local laws, and regulatory practices. It’s important to act promptly, keep thorough records, and seek professional advice as needed.


All information is given to help others. Collected from AI. I am not a professional financial advisor. I am just trying to help out.