Broker's manipulations

[PaladinFX]

Good to hear that you never had problems with your broker ... I hope it stays that way.

My point is, if there ever is a problem (chart manipulation, withdrawal issue, whatever) it is nice to have some authority to report the problem to, if no solution can be found with the broker.

Not being regulated doesn't automatically mean a broker will cheat you ... but there is an increased chance.

And since it's about money, I don't like taking chances I don't have to take ... there is enough risk in trading, without needing to increase that risk artificially.
Another advantage about regulation is that in most countries regulated brokers are required to have a certain minimum capital for their operations; an unregulated broker can, in theory, consist of a server and a website only, without any guarantee that he can meet his obligations, if necessary.

If you surf a bit, you can find dozens of horror stories about forex brokers' scams.
Regulation minimizes the risks.


Cheers,
P.

 

[TheLastBear]

Good to hear that you never had problems with your broker ... I hope it stays that way.

My point is, if there ever is a problem (chart manipulation, withdrawal issue, whatever) it is nice to have some authority to report the problem to, if no solution can be found with the broker.

Not being regulated doesn't automatically mean a broker will cheat you ... but there is an increased chance.

And since it's about money, I don't like taking chances I don't have to take ... there is enough risk in trading, without needing to increase that risk artificially.
Another advantage about regulation is that in most countries regulated brokers are required to have a certain minimum capital for their operations; an unregulated broker can, in theory, consist of a server and a website only, without any guarantee that he can meet his obligations, if necessary.

If you surf a bit, you can find dozens of horror stories about forex brokers' scams.
Regulation minimizes the risks.


Cheers,
P.

Yes, there are plenty of horror stories out there. Regulation or not, it is important to build trust with your broker. It does you know good if your regulated broker pulls one on you and you are stuck in a legal battle for x-amount of time in which you are not able to access your money.

I agree that regulation may add a layer of security, but by far is not the holy grail.

 

[Emibluz]

Manipulation is everywhere (not on a large scale) but i guess there is always risk in dealing with any broker no matter how well known they can be (small risks)

i mean, look for a regulated broker, with good history, all brokers have issues, no broker is perfect, it goes down to how much a broker takes care of its investors/traders.

review sites, forums, blogs, awards, news. all of these should give you a general IDEA.

there is no such thing as a perfect broker that does things by the BOOK word per word. but there are good brokers out there.. that try their best to achieve perfection.

Inggo, the way you talk about regulation like it is the all perfect drug to heal the market of fraud. Yet I have witnessed several clients racketed and ripped off by these regulated brokers. It may turn an illusion if a client on landing a regulated broker and expect quick bags of pips. For example isn't FXpro regulated by the reputable cysecs, how come they are renowned for platform manipulation, with deliberate flood of requotes and difficulty to close trades etc. ? What is most required of the market may not necessarily be regulation but detailed client-sensitivity.

 

[Bill Korneus]

Guys, the regulation is not so like earlier, but I still use services only of regulated brokers.
You can find info in wiki about mt4 brokers. There is an information that any of MT4 brokers can to play with a price, they can make spread wider or narrower
But personally I still using MT4)))

 

[Exness Support]

Well Most of the big brokers make money by earning from the spread you pay for opening every trade. However there is some brokers who malpractice against their clients and earn money by deleting trade history, manipulation of stop-loss, and sometimes not giving withdrawals and freezing the money. Thats why one should always check regulations of a broker and market reputation before opening an account and depositing your money

 

[Aby123]

Im not into regulated matters. As long as the broker's process my withdrawal timely and if any issue occurs immediate response is given then I wouldn't have to worry,

 

[Bill Korneus]

Aby, and what amount do you usually withdrawal from your broker? Just interesting.

 

[Shaun Henry]

Absolutely true ForexTraderr, I too wanted to say same thing. I believe many people think that regulations alone will them to great broker, but it’s incorrect as we need to look at a lot of things in order to really be safe in complete way.

 

[Kuznec]

That is why we have to read reviews about a broker to see if they are not really scammers.

What is not an absolute insurance against fraud, I would advise not only to read the reviews but also directly to those who use a particular broker.

 

[jellyeb]

Guys I have a question. Does it make sense to delve into fine print of broker ToS and does it differ from one to another. I mean is the legal side is same for all brokers and they took off all risks and responsibility from themselves? How it depends on regulation?

 

[Enivid]

Yes, not only it makes sense, it is a must-do. The ToS differ significantly from broker to broker, especially so for the unregulated (or poorly regulated) companies.

 

[jellyeb]

Yes, not only it makes sense, it is a must-do. The ToS differ significantly from broker to broker, especially so for the unregulated (or poorly regulated) companies.

Yeah devil is always in a fine print, most brokers ride on traders' negligence to get unfair advantage or put the trader in disadvantage with very well-known purpose - rip him off as soon as its possible.

 

[pipedition]

See many comparison market price and indeed many brokers are manipulating price and numerous trading things that could cause loss for traders, maybe they are against their clients.