Regulated Brokers are no longer better than unregulated brokers

Discussion in 'Forex Brokers' started by Emibluz, Oct 8, 2013.

  1. Fxpipper

    Fxpipper Master Trader

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    See here's the problem, when it comes to regulated brokers as opposed to unregulated ones, there's just no guarentee that you are going to get your money back. Simply put, in a few countries, the regulation in question may as well not exist, given the way they go about regulating these brokers..
    I do agree that it may make sense to some, especially beginners to be wary and go for regulated brokers. But bottom line, you need to do the research, set up a nano account and after a period, make a call. That's what I do with all my brokers, from tradersway to alpari..
    In short, regulated or not, if the broker is out to scam you, he will..
     
  2. John_Davy

    John_Davy Confirmed 1LotSTP Representative

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    It all boils down to us, traders! We know the consequence in trading with unregulated brokers so we should understand the risk.

    dealing with regulated is like having an insurance. but it also doesn't guarantee us!
     
  3. Emibluz

    Emibluz Banned

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    I wouldn't agree with the insurance part. At least there is a measure of guarantee with every insurance company. But with regulated forex brokers, there are no guarantees. Most of them that claim to segregate our funds are yet to provide proof of that. Why? Because they don't do that. So, if they go bankrupt, they'll definitely run away with our money before reporting it.
     
  4. lowe

    lowe Confirmed ProfiForex Representative

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    In my opinion, I don't really see any difference between them, all that matters is reliability. Most of them just use regulation as cover up, but in the real sense they just use it to restrict traders. Things can still go horribly wrong with a regulated broker as much as it would an unregulated one.
     
  5. orangebear

    orangebear Trader

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    I think that there is an argument for both. but at least fund segregation is important
     
  6. garena

    garena Active Trader

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    IN some case, regulated broker is not better than unregulated but I prefer regulated. It's like my belief/
     
  7. michael smith

    michael smith Banned

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    I worked only with brokers, that regulated by different authorities. I think, that it's better than non-regulated brokers, cause second one are engaged in arbitrariness. If tomorrow your broker company will disappear along with your funds what will you do? IMO.
     
  8. markward

    markward Trader

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    many people dont understand that regulation only deals with how funds are handled nothing else.
     
  9. Aby123

    Aby123 Active Trader

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    REgulated, at least you have registered names to be reported and others could be warned with the names they carry.
     
  10. michael smith

    michael smith Banned

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    Ok. for example: You have arrived to other country (m-m, in Russia). You need to exchange dollars (or Euro) to roubles. Where will you go at first :confused:? In bank :cool: or to guys :D who stand near exchange offices?
     
  11. Fxpipper

    Fxpipper Master Trader

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    LOL, that is just about it..it all comes down to what's on the table and unregulated brokers, offer more. I guess in the end, you need to do your research and find out if the unregulated broker is worth your time or not..
    As for risk, there's equal risk in both regulated and unregulated brokers. Sure you could file a complaint against regulated brokerages but as for action to be taken against the broker, don't expect much..
     
  12. michael smith

    michael smith Banned

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    That's what I told about. With regulated broker I feel protected in some way. I mean, I can show my claim to someone if something wrong. And what will you do with unregulated one?
     
  13. Fxpipper

    Fxpipper Master Trader

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    Here's the kicker, even when you do show you have been scammed by regulated brokers, the ones doing the regulating do not bother to take the complaint seriously enough or at most, fine the broker which they happily pay and it's back to business as usual.
    And as for the protection, sorry to disabuse you of that notion but not much protection exists. I suppose you could show other traders about the broker and how they scammed you but that's about it. Which is why I use both regulated brokers and unregulated ones, I use FXCM, tradersway and Alpari, no prizes to the one who is more proactive to my queries and frankly the one I do most of my trades with. In the end, the individual needs to do the research on brokerages, from regulated to unregulated and make the right choice..
     
  14. michael smith

    michael smith Banned

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    At least, fine the broker is already pleasurably :rolleyes:
    EVIL MUST BE PUNISHED :D
     
  15. akiko

    akiko Trader

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    Great compilation of self opinions on regulated brokers. As i read all the chit chat, i learned that it's still recommended to trade with regulated broker.

    This will be like personal experiences from every traders thank you so much.
     
  16. alexflemj

    alexflemj Active Trader

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    When choosing a broker I felt safer with regulated ones as well. Regulation varies from country to country, but at least I knew that if that certain broker disappears, my investment with them has a better chance to go back to my bank account.
     
  17. Aby123

    Aby123 Active Trader

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    Doesn't matter whether regulated or not as long as their reviews are good and is highly recommended. In the end of the day it's only you who can tell whether you were satisfied with your broker.
     
  18. Kate

    Kate Trader

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    Nice words! But, as for me, regulation is needed.
     
  19. Kate

    Kate Trader

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    Yeah! Truly said!
    I fully agree with it! Who knows what will happen tomorrow?
     
  20. Aby123

    Aby123 Active Trader

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    Thank you. Thus every traders really has their own unique way of managing and handling their selves from the hostility of market and brokers as well.
     

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