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Ideally, a broker that is good for day trading should offer trading tools and reliable market execution. These conditions will ensure that traders are well-equipped to come up with potential entry and exit points for their trades that will increase their chances of making profits. The ideal broker should also be well-regulated and fully authorized to operate in whatever country they are located.

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  1. Slippage: You should be cautious if the slippage happens very frequently and ends up negative most of (if not all) the time.
  2. Spoofing: It consists of developing a fake interest in a currency pair by placing phony orders on them without the actual purpose of trading that currency in the future.  
  3. False spikes: Unethical brokers make use of this feature by fabricating price surges in order to trick unsuspecting traders into placing orders.
  4. Stop hunting: They bring the prices to a point close to the stop loss order that forces you to exit the trade, after which they push the prices to move in the opposite direction.
  5. Front running: When a trader indicates that they intend to make an order, the broker immediately places their own order to profit from any changes in pricing.

Continue Reading at Can Brokers Manipulate Charts?