The broker-assigned relationship manager pressure scam involves a broker assigning a personal relationship manager to a trader with the intent of pressuring them into making impulsive decisions that ultimately benefit the broker, often at the trader’s expense. The relationship manager is typically presented as a dedicated support person who offers personalized advice and guidance. However, rather than helping the trader make informed and objective decisions, the relationship manager may employ aggressive sales tactics, encouraging traders to make trades that are not in their best interest. This can include over-leveraging positions, taking high-risk trades, or depositing more funds to chase potential profits, all of which increase the broker’s earnings but put the trader at risk.

This isn’t about customer service—it’s a manipulative strategy to exploit the trader.

How the Scam Works

1. Broker Assigns a Personal Relationship Manager
When a trader opens an account with a broker, they may be assigned a relationship manager. The broker positions this person as a trusted advisor who will help the trader with trade recommendations, account management, and strategy development. The manager is presented as someone with expert knowledge and access to exclusive resources that will benefit the trader.

At first, the trader may feel that the relationship manager is supportive and helpful, with offers of guidance and insight into trading.

2. Relationship Manager Pressures the Trader to Take High-Risk Actions
Once the relationship manager has established trust, they begin to pressure the trader into taking actions that may not align with the trader’s risk tolerance or trading goals. These tactics include:

• Encouraging over-leveraging or taking larger positions than the trader is comfortable with
• Pushing the trader to make quick, impulsive trades based on market speculation rather than sound analysis
• Advising the trader to deposit more funds to continue chasing higher returns, even when the trader has already suffered losses
• Recommending high-risk trading products, such as exotic currencies, CFDs, or options, which carry higher volatility and potential for losses

The relationship manager may make it seem like these actions are essential for maximising profits, while downplaying the risk involved.

3. Manager Uses Emotional Pressure Tactics
To increase pressure on the trader, the relationship manager may use emotional tactics such as:

“You’re missing out on a huge opportunity. If you don’t take action now, you could lose the chance to profit from this market move.”
“I’ve seen traders who waited too long to take action, and they ended up losing out. You don’t want to make the same mistake.”
“This trade is a guaranteed win. I’m sure this is the right move for you.”

The manager creates a sense of urgency and fear of missing out (FOMO) to push the trader into making decisions they might not normally consider.

4. Broker Benefits from the Trader’s Actions
As the trader follows the relationship manager’s advice, the broker profits from:

• Increased trading volume, generating more commission or spread revenue
• Higher risk positions, which may result in higher fees and losses for the trader, benefitting the broker financially
• Larger deposits from the trader, which means the broker holds more of the trader’s capital
• Increased margin calls, leading to forced liquidations, which result in profits for the broker at the trader’s expense

The broker’s objective is not necessarily to help the trader succeed but to extract as much money as possible through frequent and high-volume trades.

5. Trader Realizes the Negative Impact Too Late
Eventually, the trader may begin to realise that the relationship manager’s advice was not in their best interest. They may find that they have suffered significant losses or are trapped in high-risk trades that they were pressured into taking. However, by this point:

• The trader may be unable to access their funds, as the broker may impose withdrawal restrictions or force liquidations
• The trader may feel emotionally manipulated and unsure how to recover their funds, as the manager often reassures them that things will turn around
• The trader may eventually leave the platform, feeling deceived and frustrated by the broker’s tactics

Why This Scam Is So Dangerous

The broker-assigned relationship manager pressure scam is harmful because:

• It encourages reckless trading, pushing the trader to make decisions that go against their best interests, often with high risk
• It exploits the trader’s trust, as the relationship manager is presented as a trusted advisor, when in fact they are incentivised to benefit the broker
• It creates a dependency, as the trader may feel they rely on the relationship manager for guidance, even when the manager is leading them astray
• It manipulates emotions by creating FOMO and urgency, making traders act impulsively without considering the risks involved
• It causes significant financial losses, as the trader may take on more risk than they can handle, leading to margin calls or forced liquidations
• It erodes trust in the trading environment, as the trader feels deceived and misled by the person who was supposed to help them succeed

How to Detect the Scam

1. Unsolicited Pressure from the Relationship Manager
If the broker’s relationship manager is constantly pushing you to:

• Trade more frequently or take larger positions than you’re comfortable with
• Deposit more funds into your account, even when you’ve already made a significant deposit
• Take high-risk trades or use leverage that exceeds your risk tolerance

This is a red flag that the relationship manager may be incentivised to generate more fees or commissions for the broker, rather than act in your best interest.

2. Excessive Urgency and Promises of ‘Guaranteed’ Profits
If the relationship manager uses language such as:

• “You must act fast to seize this opportunity!”
• “This trade is a guaranteed success!”
• “You can’t afford to miss out on this chance!”

These tactics are designed to instil urgency and fear in the trader, preventing them from making informed, rational decisions. A trustworthy relationship manager should always allow the trader time to assess risks and make thoughtful decisions.

3. Constant Recommendations for High-Risk, High-Volume Trades
If you notice that the manager consistently recommends high-leverage trades, volatile instruments, or exotic assets without properly assessing your risk tolerance or trading goals, it’s a sign that they may be acting in the broker’s interest rather than yours.

4. Reviews and Complaints from Other Traders
Look for reviews or complaints from other traders about aggressive or misleading tactics by relationship managers. If multiple traders report similar issues with pressure tactics, it’s likely a systemic issue with the broker.

How to Protect Yourself

1. Set Clear Trading Limits and Stick to Them
Establish your own trading goals, risk limits, and fund allocation before you interact with a relationship manager. If the manager’s advice goes against your limits, don’t feel pressured to act.

2. Don’t Feel Obligated to Act on Manager’s Advice
Remember that relationship managers are incentivised to generate trades for the broker. If you don’t feel comfortable with their suggestions, politely decline and make your own decisions. Always base your trades on research and your own analysis, not on sales tactics.

3. Research the Broker and Read the Fine Print
Before committing any funds to a broker, make sure they are regulated and have a transparent fee structure. Avoid brokers with aggressive sales practices and those that don’t provide clear details about how they charge for trades or services.

4. Withdraw Funds Regularly
To avoid being pushed into further risky positions, consider withdrawing profits regularly. This ensures you aren’t trapped in a situation where the broker is incentivised to manipulate your funds.

5. Escalate Unfair Practices to Regulatory Authorities
If you feel that the relationship manager is pressuring you into decisions that go against your best interests, consider reporting the issue to a regulatory authority, such as the FCA, ASIC, or CySEC. They can investigate and take action against unethical brokers.

Regulatory Expectations

Under MiFID II, FCA, ASIC, and CySEC regulations, brokers must:

• Ensure that relationship managers act in the best interest of the client and do not employ aggressive or manipulative sales tactics
• Provide clear and transparent trade recommendations that align with the trader’s risk profile and financial goals
• Not pressure traders into high-risk trades or encourage excessive leveraging without fully understanding the risks
• Honour client autonomy, ensuring that traders are not manipulated or coerced into trading decisions

Failure to comply with these regulations can result in penalties, sanctions, or license revocation for the broker.

Conclusion: If Your Relationship Manager Is Pressuring You, Be Cautious

The broker-assigned relationship manager pressure scam is a manipulative tactic where a broker’s relationship manager pressures traders into taking high-risk trades or depositing more funds, often leading to losses that benefit the broker. By using emotional manipulation and sales tactics, the relationship manager exploits the trader’s trust for personal gain.

To protect yourself, always set your own trading goals, research the broker’s practices, and withdraw profits regularly to avoid falling victim to this scam. If the relationship manager’s actions seem aggressive or manipulative, report the issue to the relevant regulatory body.

To learn more about safe trading practices and avoiding broker scams, enrol in our Trading Courses. We’ll teach you how to trade responsibly and ensure your decisions align with your long-term financial goals.