How to complain about a broker in Europe – and when to go to the ombudsman

Most problems with brokers – slow withdrawals, disputed trades, unexpected fees, positions closed during volatile markets – can be resolved without a lawyer. EU rules require investment firms to run a proper complaints process, and every EEA country has at least one free out-of-court body that can decide disputes.

#Step 1: Complain to the firm in writing

Under MiFID II, firms must have a complaints-handling policy, publish how to use it, and respond to complaints in writing. Make yours easy to handle:

• Use the channel the firm names for complaints, and write the word "complaint" in the subject.
• Give your account number, dates, trade or transaction IDs and screenshots.
• Say clearly what went wrong and what outcome you want (for example, "reverse the close-out of position 123456 and credit the difference").
• Keep a copy and note the date.

For trade disputes, ask the firm for the execution data: the price feed at the time, the price you received and its order execution policy. Firms must be able to show they executed on the terms of that policy.

#Step 2: Wait for the final response

Firms have a reasonable period to investigate. In the UK it is eight weeks before you can go to the Financial Ombudsman Service; in EU countries timelines vary, but most ombudsmen expect you to have given the firm a fair chance and to have its final answer (or no answer after a reasonable time).

#Step 3: Take it to the ombudsman or ADR body

Which body you use depends on where the firm is licensed and, sometimes, where you live. Examples:

• Cyprus (most CFD brokers): Financial Ombudsman of the Republic of Cyprus
• Germany: the Bankenombudsmann for private banks, or BaFin's arbitration board
• Ireland: Financial Services and Pensions Ombudsman
• Italy: Arbitro per le Controversie Finanziarie
• Netherlands: Kifid; Belgium: Ombudsfin
• Malta: Office of the Arbiter for Financial Services
• UK: Financial Ombudsman Service
• Switzerland: Swiss Banking Ombudsman

Each of our country guides lists the relevant body.

#Cross-border disputes: FIN-NET

FIN-NET is the European Commission's network of financial dispute-resolution bodies in the EEA. If your broker is in another country, contact the FIN-NET member in your own country; it can tell you which body is competent and often forward the complaint.

#What ombudsmen can and cannot do

They can require firms to correct errors, refund charges or compensate you for losses caused by the firm's failures. They generally cannot compensate losses that resulted from normal market moves on trades you chose to make, and many have monetary limits. Some decisions are binding on the firm; others are recommendations. Ombudsmen are not available for firms that are not authorised in Europe – one more reason to avoid offshore brokers.

#Also tell the regulator

Regulators do not usually resolve individual complaints, but they use them to spot problems. If a firm is ignoring complaints, blocking withdrawals or behaving suspiciously, report it to the regulator that licenses it.