What do I expect from a broker? from my point of view, I expect tight spreads, fast deposit and withdrawal times, personal customer service and support so if the need arises, I can ask a question regarding my account 24/5 ! and most importantly.. Regulated by a recognised body, and as said above by Moreno, clients funds in segregated accounts.

Rosie4x

Segregated funds is an illusion. Nice to read and have, but when it comes down to it segregated funds do not provide the security you may hope for.

James_Bond posted:

TheLastBear posted:
Segregated funds is an illusion. Nice to read and have, but when it comes down to it segregated funds do not provide the security you may hope for.


You can never be 100% safe as history proves us exactly that. I think all of these so called 'protections' are just there to provide a false sense of reassurance to the trader.


As I've said before, most people think about managing their risk only in terms of trading. They should be more concerned with managing their risk in terms of where their money is being held!

I agree with you guys; which is why I believe that traders should use brokers in the United States, where brokers are subjected to the strictest regulation in the forex industry.

TheLastBear posted:
I disagree with using brokers in the U.S. due to the regulation. It is the prime reason people stay away from that. Security cna be achieved in so many ways and as we saw with MF Global, PFG and others it does not protect you which is why the U.S. overall makes no sense for that.


Most people don't usually do what's best for themselves. Sure, MF Global and PFG were a black eye for the NFA and CFTC; but that just decreases the chance of it happening again in the future due to the increased scrutiny. I would also like to point out that the majority of forex broker related scams/fraudulent occur OUTSIDE of the United States.

When forex brokers are subjected to looser regulation, there is a higher chance that they can go out of business. (I'm not referring to fraudulent activity here, merely the ability to profitably manage a business)

On the MT4 platform, U.S. brokers offer the ability to hedge* and exit trades in whatever order the trader would like too. The only thing U.S. brokers can't offer them is higher than 50:1 leverage - which good traders don't need. If you're using more leverage than that, statistics say you'll eventually blow up your account.

'is why the U.S. overall makes no sense for that.' - If you're going to make such a ridiculous claim please provide some substance to your argument.

TheLastBear posted:
Every sound broker offers the ability to hedge and exit trades in whatever order the trader would like too so that statement makes no sense. It is no secret that most sophisticated traders and investors have fled the U.S. or are in the process to do so due to its regulation which is extremely counterproductive.

Sure, if you like it then go for it. In the end it comes down to what you prefer. I feel very secure where I am in my off-shore accounts and happy to be there. Every sophisticated investor and trader I know avoids U.S. based brokers. You may think it is ridiculous which is fine with me.

When it comes to leverage it is another personal choice and statistics don't always give you the best insight and always depend on the data collected as well as the source. When I stated that the U.S. makes no sense I referred to the idiotic over-regulation which does not provide a safety net but is simply in place to provide a false sense of security.




''Every sound broker offers the ability to hedge and exit trades in whatever order the trader would like too so that statement makes no sense.''

There are plenty of forex traders out there who still don't know that U.S. brokers can offer the ability to hedge on the MT4 platform due to the Dodd Frank Act. Thus, it's a valid point to bring up.

''When it comes to leverage it is another personal choice and statistics don't always give you the best insight and always depend on the data collected as well as the source.''

lol. Spoken like someone who regularly over-leverages and blows up accounts.

''When I stated that the U.S. makes no sense I referred to the idiotic over-regulation which does not provide a safety net but is simply in place to provide a false sense of security.''

That 'idiotic' over-regulation helps to prevent forex traders from scams. Does U.S. regulation guarantee the safety of our funds? Of course not. The U.S. Regulation increases the chances that forex traders won't be scammed. Remember, the majority of forex brokers who engage in fraudulent activity or go out of business are located OUTSIDE of the United States. That sir, is a fact supported by historical evidence.

'It is no secret that most sophisticated traders and investors have fled the U.S. or are in the process to do so due to its regulation which is extremely counterproductive.'

What does this statement and the stock market have in common? Both are divorced from reality.