Questions about brokers, any answers?

Emibluz

Banned
Aug 22, 2013
165
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27
Do Brokers voluntarily ask for license from regulatory bodies or is it imposed on them?

Are there any regulatory bodies that are part of the government?

Can a regulatory body close down a brokerage firm for fraud? If yes, give an example

I have seen these questions on other forums but could not read a straight forward answer. Please I want answers, anyone care to share his knowledge?
 

Enivid

Administrator
Staff member
Nov 30, 2008
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Do Brokers voluntarily ask for license from regulatory bodies or is it imposed on them?
You can open a broker without asking for a license, but you will be operating illegally.

Are there any regulatory bodies that are part of the government?
CFTC in the US.

Can a regulatory body close down a brokerage firm for fraud? If yes, give an example
Do introducing brokers count? Then here is an example: http://www.cftc.gov/PressRoom/PressReleases/pr6862-14
 

wisetrada

Active Trader
Mar 4, 2014
53
5
39
I don't think Illegal is the correct word to use. This is because they operate in the open and there is nothing the regulatory bodies can do about these brokers. Nothing at all.
 

Olss77

Trader
Mar 18, 2014
9
0
12
Do Brokers voluntarily ask for license from regulatory bodies or is it imposed on them?

Are there any regulatory bodies that are part of the government?

Can a regulatory body close down a brokerage firm for fraud? If yes, give an example

I have seen these questions on other forums but could not read a straight forward answer. Please I want answers, anyone care to share his knowledge?
Are there any regulatory bodies that are part of the government? = ALL are government bodies

Can a regulatory body close down a brokerage firm for fraud? If yes, give an example= YES, but likely to fine them only
 

Aby123

Active Trader
Mar 17, 2014
113
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27
Glad I've dropped by this such informative thread. A very good question and a very well said answer. Thank you.
 

globalfx

Trader
Feb 24, 2014
44
1
19
Yes, Enivid, You are right about CFTC. Its just that too much corruption no longer makes then active. All government bodies cannot be trusted.
 

Enivid

Administrator
Staff member
Nov 30, 2008
12,034
455
114
Odessa
www.earnforex.com
I don't think Illegal is the correct word to use. This is because they operate in the open and there is nothing the regulatory bodies can do about these brokers. Nothing at all.
Actually legal is the correct word to use. Look up its definition if in doubt. Most regulatory bodies can pretty much close the unlicensed brokers in their jurisdictions.

Are there any regulatory bodies that are part of the government? = ALL are government bodies
Not true. NFA is not a part of the government. British FCA is not a part of a government, though it is supervised by the Treasury.

Yes, Enivid, You are right about CFTC. Its just that too much corruption no longer makes then active. All government bodies cannot be trusted.
Too much corruption no longer makes CFTC active? What is that supposed to mean? As of today they are fully operational and pretty active.