yup and there are a bunch of good regulators, some depend i guess on the location of the traders of something of such..
Forex broker regulations?
- Thread starter Rambo35
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I do think that regulations are a kind of guarantee for traders, however nothing is 100% guaranteed. It is the same as banks and investment funds, they are supposed to be regulated by national authorities and it is not the first time I hear of some of them going to bankruptcy.
Have you heard or know any broker being chased or having troouble with any regulator?
Forex regulation is not about chasing or problems, but a lot of brokers have been fined and/or other penalties imposed on them by different regulators.
From my point of view without knowing a lot about this, a broker can afford a fine and continue what was doing without any concerns. I think they worse think it can happen is stop regulating them!
Fines and penalties are sized in a such way that the malpractice becomes unprofitable as they can be order of magnitude greater than the acquired profit.
Yes, the worst thing is license revocation, which means that the broker can no longer work under that jurisdiction, losing its customers from that jurisdiction. Of course, if we are talking about some offshore "regulators" it does not mean much, but if a broker gets regulated by FCA (which is not cheap thing to do), gets a lot of customers in the UK and then loses it all due to the lost license, it is not something a rational business owner would be looking for.
Thank for clarifying the fines procedure. I am wondering what do they need to remove a licence from a broker. I can see so many traders complaining about scam brokers which make me think that if they were true and based on real facts any regulator will not sacrifice its reputation and would have stop regulating them. I think this has to do with those kind of traders that they see trading as gambling or inexperienced ones who do not know what they are getting into it and all they do is complaining.
I think we always choose a regulated broker because it is matter of our valuable money and if we will trade with a regulated we would not be scammed and our money will be in safe hands.
I guess they would, like the binary option industry is growing really fast, and more brokers (forex) power or start a binary section. lets say optiontrade is powered by hotforex and many other. and its getting really popular across Europe and Asia
Probably this:
http://www.gamblingcommission.gov.uk/pdf/Letter-APtoJW.PDF
But that's a rather old news - August 2014.
i think regulation of a broker is very important and we should always choose a regulated and reliable because it is matter of our valuable money.
Sorry but would have to disagree with the whole "regulated makes for safer trading" argument. Of course, it is a given that if a broker is regulated, it does offer you some sort of protection or so one would think. But when you look at the recent fines imposed by some of these regulatory authorities on some of the top brokerages, and the "what for", you would soon come to the conclusion that the fine and the slap on the wrist really amounts to bupkiss.
This is not to mean that regulated brokers are bad, but just pointing out that unregulated brokers do a much better job, at least in my case with tradersway to attend to any queries or issues right away. And when you consider the fact that alpari did a hatchet job on their client accounts and then went belly up, with our funds locked in and when you take into account the fact that alpari was regulated, you will soon see why I posted, what I had posted..
When it comes to trading, use your own judgement when selecting a broker and when that broker does not respond adequately or in time to your queries, that's a red flag and you better start packing. Just my two cents, thanks to the alapri episode..
This is not to mean that regulated brokers are bad, but just pointing out that unregulated brokers do a much better job, at least in my case with tradersway to attend to any queries or issues right away. And when you consider the fact that alpari did a hatchet job on their client accounts and then went belly up, with our funds locked in and when you take into account the fact that alpari was regulated, you will soon see why I posted, what I had posted..
When it comes to trading, use your own judgement when selecting a broker and when that broker does not respond adequately or in time to your queries, that's a red flag and you better start packing. Just my two cents, thanks to the alapri episode..
Alpari UK customers are getting compensations from the Financial Services Compensation Scheme of Great Britain. What happens when some offshore company like Trader's Way goes down?
is it like official, alpari UK is no more? I read somewhere its gonna take some time to get back the traders money, no so sure though.
You can read up on the current situation with Alpari UK here:
https://www.insolvency-kpmg.co.uk/case+KPMG+AF119D1101.html
https://www.insolvency-kpmg.co.uk/case+KPMG+AF119D1101.html
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