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 &
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 $
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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.
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
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
There are some very tangible risks related to trading with unregulated brokers, especially the ones registered in offshore zones in the middle of nowhere. The local institutions provide no safety net, their capital requirements are exceedingly low (example: In order to register a broker broker in Vanuatu you have to have a grand total of $2000), there are no compensation schemes guaranteed by a regulator, etc.
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.
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.
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.