Broker inserts virtual trade against position is a serious malpractice where a broker artificially creates losing trades in a client’s account. These virtual trades are not based on real market activity but are inserted into the trading history to push the account towards a margin call or liquidation. This unethical behaviour can drain an account without the trader ever having the chance to defend their positions.

Such practices are more common with unregulated or poorly regulated brokers that operate without strict oversight. Traders must be aware of how this tactic works and how to spot it early.

How brokers insert virtual trades against positions

There are several methods brokers use to insert fake trades into accounts.

Phantom orders

The broker places fake trades on the account that were never executed in the real market. These trades appear in the account history, often showing large losses that contribute to margin reduction.

Price manipulation

The broker artificially triggers stop-loss orders or margin calls by briefly showing a price that never existed in the real market. This results in the forced closure of genuine trades at a loss.

Trade cloning with altered outcomes

Sometimes brokers copy a client’s legitimate trade but reverse the outcome, making it appear as though the trade lost heavily even if the real market movement was in the trader’s favour.

Impact on trading outcomes

Virtual trade insertion can devastate a trading account.

Unexpected margin calls

Artificial losses created by virtual trades reduce equity and trigger margin calls, forcing traders to close real positions at unfavourable prices.

Destruction of trading history

Fake losses ruin the credibility of a trader’s account history, making it harder to evaluate performance accurately.

Loss of funds

In the worst cases, traders lose their entire account balance due to trades they never actually made.

Loss of trust

Discovering that a broker inserts virtual trades destroys all trust and signals the urgent need to leave the broker.

How to protect yourself

There are important steps traders can take to defend against brokers inserting virtual trades.

Use brokers with transparent execution

Choose brokers regulated by authorities like the FCA, ASIC, or CySEC. Trusted brokers like Intertrader, AvaTrade, TiBiGlobe, Vantage, and Markets.com offer full transparency and do not engage in such practices.

Monitor trading history closely

Regularly check your trading history for any unfamiliar trades. If you notice trades you did not place, raise the issue immediately with the broker’s compliance department.

Cross-check trades with independent data

Use third-party platforms to verify that your trades align with real market movements and prices.

Document everything

Keep detailed records, including screenshots and trade confirmations. If necessary, this evidence can support a complaint to the broker’s regulator.

Withdraw funds at the first sign of problems

If you suspect that virtual trades are being inserted into your account, withdraw your funds immediately and switch to a more reliable broker.

Reliable brokers for safe trading

Brokers regulated under strict authorities provide true market execution and protect client interests. They are less likely to engage in fraudulent practices like inserting virtual trades.

By staying vigilant and choosing the right broker, traders can protect themselves from the devastating effects of brokers inserting virtual trades against positions. Always demand transparency, fairness, and accountability from your trading provider.

If you are committed to learning how to trade safely and building a strong trading foundation, explore our professional Trading Courses today.