Can we trust a broker based on regulation

Discussion in 'General Forex Discussion' started by Emibluz, Jan 7, 2014.

  1. Emibluz

    Emibluz Banned

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    Sometimes it is confusing when regulated brokers are more involved in forex scam cases, tricks and slippage manipulation. When the keyword is entered on google, you read lots of court cases and traders don't get their money back. How much should we really trust these brokers? If they are involved in these practices then what advantages do they have over the unregulated and offshore brokers?
     
  2. UMAF

    UMAF Trader

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    For most retail traders, regulation ensures that they have somewhere to go if scammed. Other than that I dont really see that retail traders are worried about transparent operations as their selection criteria is based on recommendations given by the community (eg forum, review websites).

    Therefore, regulation matters but I think the most important aspect is reputation with Forex community, offer of segregated account, financial compensation scheme such as by UK and Cyprus boards and (third party dispute resolution, if offered).
     
  3. miles

    miles Banned

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    It's better to stick to a broker that is regulated, that you know your fund is save with them because they make sure that their company will be well regulated and if any complain is from them, the regulatory authority will have to question them about their regulations. Now, I choose to be with regulated broker because i feel save with them and this broker is reliable and trust worthy to use when it comes to fast and fair execution without slippage.
     
  4. Fxpipper

    Fxpipper Master Trader

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    No, not really. I have been using both and no issues with either of them. But here's the catch, regulated or not, a broker can still scam you and even if you report the regulated donkeynuts in, they end up with a measly fine and still walk away to scam more..lol
     
  5. miles

    miles Banned

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    Yeah..you are right. Nowadays, the regulatory body is kinda corrupt now and we do not know the one to follow or trust because the forex business is full scam broker claiming to be the best but we have trust our broker, that is when you know you Have been using the broker for long without any complain. I'm with regulated for now because it's reliable and trust worthy with their services, also with suitable terms and conditions.
     
    Last edited: Jan 13, 2014
  6. Rambo35

    Rambo35 Confirmed PaxForex Representative

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    I think the US provided some great examples of how regulation does not shield you from fraud and bucket-shops. Regulation does not ensure your safety.
     
  7. miles

    miles Banned

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    Well, I really don't know If some traders do feel save with unregulated broker because to me, If i have to make another choice of broker i would still like to be with a regulated broker since I'm not used to a broker that is not regulated. Although, I trust my not because it is regulated but because it's reliable and trust worthy.
     
  8. miles

    miles Banned

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    That's the point, my friend. Regulated or not, we have to be with the right broker the can offer us good services, that's what matters in forex. Just because a broker is regulated does not mean we are 100% save, but we ought to trust a broker that you have no problem using them.
     
  9. reifallen

    reifallen Trader

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    I think that the potential for corruption is present regardless of what measures are put in place to try and protect people from scams and scam runners. The reality is that even someone who has all of the qualifications, certifications, and everything else that we could possibly ask for can still have the potential of being a con artist. There are even situations where someone with a great and pure heart turns bad. The reality is that you could hire a broker who will scam you. The risk will always be there that you could lose your money in one way or another, regardless of what you invest in and who you trust to invest your money for you.
     
  10. Fxpipper

    Fxpipper Master Trader

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    And that's why we have to use micro and nano accounts to test out a broker..and this is why it makes more sense to go live..
     
  11. Emibluz

    Emibluz Banned

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    Therefore, the regulated brokers should stop posing as saints in the Fx market, making the offshore and unregulated broker seem very bad, when in true case, they themselves are no different. I have found some very transparent unregulated and offshore with better trading condition. So, regulation to me, is not a guarantee for security.
     
  12. Fxpipper

    Fxpipper Master Trader

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    Exactly, I have been with both regulated and unregulated brokers, and frankly, they are both good; ironically, the unregulated broker answers all my calls, anytime of the day where as the regulated broker usually sets a time frame for a meeting or calls me at a convenient time. Just sayin' that while regulation may offer some semblance of protection but when it comes to customer support, the unregulated one pip the regulated ones to the post..
    But as a trader, you would need to use your own judgement and make that call, regarding the broker..
     
  13. John_Davy

    John_Davy Confirmed 1LotSTP Representative

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    Always be cautious whatever it is.
     
  14. vicknic

    vicknic Confirmed ProfiForex Representative

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    I think you are right. These brokers do set time to answer clients. The broker I trade with answers my call every time, thought they are regulated, but not by the FCT or AUSIC.
     
  15. highpips

    highpips Trader

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    I think the offshore/unregulated brokers are more inclined to helping clients, while the regulated brokers just sit back and expect that client will always come to them as long as they claim to be regulated. I hate how they treated me some time ago like I was shit. If they don't have time for clients, how can traders succeed under such condition. I think you will enjoy your trading better with a nice reliable offshore broker. Most of the offshore brokers are even regulated, but not by the FCT or CFTC or AUSIC, whatever they call themselves.
     
  16. Fxpipper

    Fxpipper Master Trader

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    I know, it makes it more worthwhile to spend time checking out an unregulated broker than it is in trying to call up CS with a regulated one.
     
  17. lee.belisar

    lee.belisar Confirmed Gdmfx Representative

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    Legality wise, I think we can trust a broker based on regulation. But be sure to check if a particular broker is indeed regulated or not. Also if it crucial to do some background checks to prospective broker so you would know to whom you are dealing with. As in case of issues and problems, like being scam, you know where to go and file a case with.
     
  18. dodo

    dodo Confirmed ProfiForex Representative

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    To me, regulation is not always the case because a broker can to be trusted base on how good their services and trading conditions are, not if it is regulation or not. But we should stick to a broker that you know your funds will be saved and have comfort with so that we will not to regret anything.
     
  19. Fxpipper

    Fxpipper Master Trader

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    For one, traders can find out if their brokers segregate the funds..most do and some, well do not for whatever reason.
     
  20. dodo

    dodo Confirmed ProfiForex Representative

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    I'm still not very sure of this brokers saying that funds can be segregated for some reason, does it really mean that the funds will be secured if it is segregated no matter what happened? Because I know despite the so called segregation my money is still secured with my broker for there is trust worthy attitude in them.
     

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