Forex broker regulations?

Rambo35

Confirmed PaxForex Representative
Apr 22, 2013
909
13
32
Canada
More often when we are looking for a good forex broker to open an account with, we usually look for a forex broker who is regulated hoping that it’s going to be a good one and not scam one. However, does those regulations are guaranty that we are not going to be scammed?
 
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toretton

Trader
Aug 9, 2014
94
0
22
Italy, Milano
I've already posted this in another thread and would like to add here. I don't think the reason of problems that might occur with a broker depends on it regulated or not regulated basis. For example Cysec, one the most popular nd well-known FX regulator. I don't feel like i'm blacken it, but still have info that it's not that hard to buy their license. So what i'm trying to say is that we can't think that regulated broker is a good one and unregulated one - a bad. Moreover once I've made a research that some well-known brokers have information about their licenses, not having a links to see a license itself. So I just choose my Broker, it's new one, and even it's only in process of obtaining license - I've already earned with it, I trust it and my advice is choose the Broker that brings you profit, that is the only thing that matters on the FX market. Recently, I began to see more and more well-known names of regulated brokers in the discussions about the fraud and so on. As it turned out, these brokers do not withdraw money to its customers. Moreover (I will not write the name of the broker, since I have nothing to do with it), but the broker who has most in the world numbers of licenses and who is one of the three world's leading brokers, does not withdraw money as well.
 

Exness Support

Active Trader
Apr 21, 2014
572
0
32
In my opinion regulation is important because something is better than nothing. But i think what is more important than regulation is that your broker's reputation. Please make a review of your broker with their existing clients before you decide to make a deposit with them. There are many brokers in this industry like Exness, Hotforex who dont only have the regulations but also have earned the reputation in the market by consistent good work and great customer service.
 

toretton

Trader
Aug 9, 2014
94
0
22
Italy, Milano
Now's the time when evrth can be bought from the regulation and licensing to a positive reputation among customers. Not all the reviews that u can find on the internet - true, just like not all certificates and awards on websites of brokers r real. Therefore, in this respect, I am inclined rather skeptical. For me it's not an indicator of trust.
 

inggo

Master Trader
Jan 13, 2012
474
11
59
Philippinese
no matter what regulations it is i dont think its enough to grant a guarantee but, a regulated broker is way better than any broker unregulated, it has something to do with credibility of course, a good willed broker will always get regulated as a sign of good will. at least thats how i look at it.
 

fxapex

Active Trader
Jun 7, 2013
258
7
29
Yes there are chances as regulation norms are different in all countries, in some countries its strictly governed and in some its very lenient. so thats why there are chances of a company to be scam.
 

seekfxhelp

Banned
Nov 11, 2014
28
0
0
Yes there are chances as regulation norms are different in all countries, in some countries its strictly governed and in some its very lenient. so thats why there are chances of a company to be scam.
Many retail FX outfits are scam, even regulated ones. Only experience will help you to discern them. Lose 1-2 K $ to get a clue of what is going on there..
 

ForexSQ

Master Trader
Jan 11, 2011
218
0
52
www.forexSQ.com
when a broker is regulated it cant scam you like changing profitable history .. also regulators are different each others like U.S or UK regulators are trusty
 

TraderPaul

Trader
Nov 17, 2014
3
0
12
Hi,
couldn't help but throw my 2 cents in on this one.

There are many different ways for a broker to scam you - these range from taking your money and running of into the sunset through to modifying prices and spreads on you.

There are for example brokers out there (large ones) who are paying introducing brokers and sales people a % of your losses - that's right, losses.

Look for a broker who will guarantee you that they will not B-Book you and offer transparency on the trade execution process. The transparency aspect of the operations helps you, not them and so most wont offer it.

One other tell tale sign that you're going to get fleeced are the bonuses that they offer to sign ups - think about it for a moment, where do the bonuses come from?

If you'd like to know more on that particular subject have a look at this:

https://www.linkedin.com/pulse/article/20140806095559-6497736-ibs-where-does-your-commission-really-come-from?trk=mp-reader-card

Hope this helps,
Paul.
 

tomas.v

Trader
Nov 18, 2014
23
0
17
Germany
All so called 'western' regulators are mostly reliable even from NZ and Australia, you should be cautious of such regulators as: Seychelles, Belize, St. Vincent.
 

inggo

Master Trader
Jan 13, 2012
474
11
59
Philippinese
yeah regulatories are important, small or big ones its still a regulatory, i trade with hotforex which is regulated by both the FCS and the CySec but aside from regulations, i always say spend some time to research the broker beofre joining, thats where most traders commit mistakes.. impatience.
 

alexis

Trader
May 8, 2014
7
1
12
I don't really believe in regulation. I am trading with an offshore broker. Besides, regulation by private bodies makes no sense. They can't even make a broker process a withdrawal. In the end, what remains is the reputation of a broker.
 

limalima

Banned
Dec 10, 2014
24
0
0
More often when we are looking for a good forex broker to open an account with, we usually look for a forex broker who is regulated hoping that it’s going to be a good one and not scam one. However, does those regulations are guaranty that we are not going to be scammed?
While it may be important to consider registration as an option when choosing a broker, we should know that these days, regulation is not a guarantee that a forex broker will not practice shifty activities.
So, do not put regulation first, rather, check their online reputation and reviews to know how they have dealt with other traders like you.
 

chief

Confirmed Tickmill Representative
Oct 27, 2014
217
6
37
While it may be important to consider registration as an option when choosing a broker, we should know that these days, regulation is not a guarantee that a forex broker will not practice shifty activities.
So, do not put regulation first, rather, check their online reputation and reviews to know how they have dealt with other traders like you.
for years in online trading, i'm quit buying regulation process at first factor before go with any brokers. it wouldnt actually prevent their platform to rob our pips without even knowing, some brokers are even worst, cancel profit, unreasonable price gap, premature SL hit, etc. reputation would be good start to research, but i always take this as reference only. for example with my current broker service armada market, they had a good online repuation, many scalpers use their service, but i'm not barely open an account with them and put desired amount deposit. i need to experience their trading condition on my own, these where i start with test small amount deposit before begin to put more deposit, it's been years since my first account registration with AM, and now i use them as my primary brokerage service.
 

alexflemj

Active Trader
Nov 9, 2011
69
1
27
no doubt that regulation is a plus but lack of negative comments online is what really comes in handy when choosing your broker
 

inggo

Master Trader
Jan 13, 2012
474
11
59
Philippinese
I do look at review sies and forums for feedback, i would recommend forex peace army for more realistic issue and how brokers solve them, that way, aside from regulation the traders can see how brokers handle individual issues small or big.
 

Fxpipper

Master Trader
Oct 26, 2011
1,132
1
49
The word sure sounds great, "regulated" but as experience would tell, being regulated does not prevent a broker from trying to scam traders. Quite a few brokerages have been fined over this and what do you know, within a week or two, it is the same thing all over again. Frankly of the three brokers i use, from tradersway, fxcm to alpari, one of it is unregulated and so far, no issues whatsoever. And the CS with the unregulated broker is always quick to answer any questions or resolve any issues, where as those regulated, well not so good..
Just my two cents..