Unregulated vs Regulated brokers

Discussion in 'Forex Brokers' started by nealvan, Jan 4, 2008.

Is it better for a broker to be regulated?

  1. Yes, it protects the trader and allows for investigations by a legal board.

    21 vote(s)
    70.0%
  2. No.. Regulations are not a failsafe. Reputation and service are more important than being officiall

    9 vote(s)
    30.0%
  1. ssss

    ssss

    All Swiss based forex broker#s are not regulated .

    Shares regulated by EBK ,forex not

    Swiss based forex broker stated on they#s side ,that
    regulated from money laundering authority ,but it not more
    as deceptive statement .

    Swiss Money laundering authority responsible for money laundering , not for any complaint of clients against Swiss based
    forex broker. (Answer of authority to author)

    If operator would have problem ,he must go to cantonal court .

    But ,that is calculated from broker .

    Time of case processing by swiss court &
     
    #11     Feb 2, 2008
  2. ssss

    ssss

    Pippi436


    Does anyone even know a FX firm with reputation that is not regulated? I pesonally have a hard time thinking more than a few of firms with reputation under any premise.. (retail anyways).


    Do you knew any forex firm with reputation ?

    Alsov ,which regulated is ....

    Public noted,on of the greatest CFTC related broker - Refco dissapeared in 5 days .


    All CFTC accounts are not SIPC protected ....

    If any broker by CFTC account

    would going with your cash to Columbia or Thailand

    you would not compensated ...

    Compare capitalisation of REFCO and Forex broker
    with reputation -Hotspotfx ,this have only 6-7 mln $
     
    #12     Feb 2, 2008
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    #13     Oct 17, 2017
  4. doggyfx

    doggyfx

    Wherever the broker based there are only three reliable regulators that guarantee safe forex trading - FCA, ASIC and sometimes CySec. Opening account you fall under jurisdiction of those three watchdogs, while broker office can be located anywhere.
     
    #14     Oct 17, 2017
  5. pipeguy

    pipeguy

    Yeah and it quite confusing, I think they should reveal how client flow is directed to the offshore branches where you become extremely unprotected on the legal side.
    Regarding FCA license I suppose FCA ordered to keep clients forcedly on the UK branch, as in my case with Tickmill. I see they're quite strict about that, so if you have a chance to trade with FCA broker, never let it go :)
     
    #15     Oct 29, 2017
  6. doggyfx

    doggyfx

    FCA may be stricter on supervisory side but not sure if it offers higher level of consumer protection that offshore regulation. Haven't heard about cases that non-UK client could effectively use FCA as leverage to resolve trading issues
     
    #16     Oct 31, 2017
  7. mlawson71

    mlawson71

    #17     Nov 28, 2017
  8. pipeguy

    pipeguy

    FCA provides compensation for UK citizens only? What's the benefit for clients from other countries. It's really difficult to say if the broker legit or not only time will tell.
     
    #18     Apr 26, 2018
  9. mlawson71

    mlawson71

    The benefit is, I assume, that they're working with a broker regulated by an agency with a relatively good reputation. It's one thing to trade with such a broker, it's another to trade with a broker registered in Vanuatu, for example.
     
    #19     Apr 27, 2018
    Xela likes this.
  10. Xela

    Xela


    Indeed, exactly so.

    There are reasons that in the murky world of retail spot forex-trading the counterparty market-makers who are pretending to be "brokers" sometimes choose to be regulated in jurisdictions like Vanuatu, the Seychelles and Cyprus ... and to put it mildly, they're not reasons that are in their customers' interests.

    You find out how "good" your broker is only when something goes wrong.

    Where and by whom they're regulated is about the single most important consideration behind the issue of selecting a broker.
     
    #20     Apr 27, 2018
    lovethetrade likes this.