Is retail forex regulated well enough to trade?

Discussion in 'Forex' started by sab1234, Dec 21, 2017.

  1. sab1234



    Stocks are regulated by exchanges. So I know the brokers who are trading on these exchanges are regulated by these exchanges. But what about forex? Are they regulated well enough for me to start trading them?(Someone like tickmill?)
  2. Xela


    This post may help you.
  3. JSOP


    You can trade with them just beware of what they can do.
    comagnum likes this.
  4. tomorton


    Retail forex regulation is strong in the UK, which is where forex is based anyway.

    The only way to get into a losing competition with a forex access provider here is if you try to arbitrage their prices or take large very short-term positions - they will not be able to off-set the risk involved and they will just ask you to close your account.
  5. To play safe, one way I can think of is to stick to currency futures. Futures are regulated.
  6. comagnum


    Retail forex regulation is strong in the UK, which is where forex is based anyway.

    U.S. Fx trading regulations are significantly stronger than those in the U.K.. In the U.K. the FSA does not recognize Fx as a legit investment, basically you have very weak if any regulations for those brokers that are even regulated. The U.S. largest broker, IB, requires $5M to do leveraged Fx @ 50:1. In the U.K. you can get 2,000:1 by opening an account with $100.

    The numbers speak for themselves. The USD does more volume than all the other currency leaders combined. That makes NY/USD the worlds largest traded currency.

    Last edited: Dec 22, 2017
  7. tomorton


    Strange post.

    More USD are traded daily through London's forex market than in the whole of the US combined. This is widely known and nothing new.

    The FSA is not the UK financial regulatory body. The FSA was abolished in 2013 and replaced by the Financial Conduct Authority. The FCA authorises and regulates brokers etc. involved in forex.

    Different rates of leverage - but what does that prove?
  8. comagnum


    I also thought your post was strange claiming Forex is based in the U.K. - maybe retail trading but the banks in NY are doing more volume.

    My error on the FSA, I meant the FSA but the same point holds true - being it's weak regulations - the huge leverage makes this point when most countries have really cracked down on this type of risk.
  9. tomorton


    London has a total forex turnover nearly twice NY's. It trades more USD than does the US economy daily and more EUR than does the EU economy daily. Its effectively the global headquarters for forex.

    Maybe we'll hear from someone who thought it best to re-locate their trading to the UK to take advantage of weak regulations. Though I think it'll be a long wait.
  10. comagnum


    I was just messing with you - yea London seems more favorable for traders. Even Gordon Gecko moved his operation there.
    #10     Dec 22, 2017
    tomorton likes this.