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AAST
Aug 31 2018 at 10:52
8 posts
Can anyone please help me to understand, what would happen if your broker goes bankrupt? lets say you have $100,000 account what.
Also know that we want to make sure brokers are regulated.

Im from Cananda and considering the ThinkMarket from Australia for my broker. Everything looks solid and safe on their website, but i have this fear of depositing real money.

If there is anyone here from Canada, what brokers are you guys using and how was your experience. depositing and withdrawing?

thank you all in advance



 

jamesgwyther
Aug 31 2018 at 13:04
289 posts
My belief, though I could be wrong, is that as long as the broker's liability partners are regulated then you are covered.
I use Hugosway these days as a broker. I am in the UK but you can use them in Canada.

estraub
Sep 02 2018 at 07:41
23 posts
If a broker goes bust - your funds are lost.
That's where the regulation comes in.
With a broker that is regulated by a good regulatory authority you can expect them to have some kind of insurance fund. The one in Cyprus is called ICF (Investor Compensation Fund) and they will pay up to 20k Euro in losses per person if the broker is bankrupt. So, yeah.

Contact the broker and check?

If they have their ASIC registration number listed on their website - check with in the ASIC registry if they really are regulated.
The important part is to verify that they are REGULATED, and not just Registered - when regulated you get the protection of the regulator, when registered the broker is only allowed to provide services for said regulator's clients.
If a company is regulated in Vanuatu, but is registered with FCA this means that they can accept clients from the UK but the protection is provided by the Vanuatu 'authority' with is virtually non-existent.
Keep that in mind.
Personally, I've never heard of Think Market but the one I know is reliable in the land down under is IC Markets.

Thanam FX (thanamfx)
Sep 02 2018 at 07:41
4 posts
Most brokers keep Client fund in trust account . it safe from bankruptcy . brokers suppose not to touch fund in Trust account (its a financial crime). ThinkMarket (Australia) uses Trusted account. and regulated in Australia.

 in the event of bankruptcy administrator may take long time to release to fund back to you but you will get it back

Cameron Gill (camerongill)
Sep 02 2018 at 23:44
110 posts
Hey there, I am in Australia and have used ThinkMarkets broker and used for a year or so.

If you are regulated in Australia then there are requirements around reporting, reserve funds, & management of funds. To get an AFSL does cost a lot of money (AUD$250,000 +) which means that backyard operators cannot afford to gain regulation. I suspect that if a broker went belly up, then Australian clients would receive preferential treatment over international clients, however am not 100% sure of that. You will also notice that Aus brokers are adopting some of the new European practices such as negative balance protection.

I now use Pepperstone and from memory moved to Pepperstone because I could get trade rebates through cashbackforex with them. However I think that Think is also on the trade rebate service now. If you are using trade copying services, check if Think is also on crowds such as Zulu. Think and Pepperstone are similar and to me are in the same bracket, there are a couple of others that I would not recommend, one, that I would like to name but think best I dont, outsourced all of its support to a Chinese call centre and had lots of trouble with dropping connections and I recall being in a trade, an announcement coming up, trying to get out and then my MT4 had 'unable to connect' and calling them to be mucked around, fortunately I did not lose money.

One thing you will find is that brokers in Australia do not offer the same promotions of other brokers (eg. Cyprus based ones), however as we all know, promotions are not free, they are paid for in spreads and commissions. So these other brokers are trying to get you to trade more and more to recover marketing costs.

Saying that here in Australia we have also had a banking commission which found some dodgy practices going on, and the problem is that here in Australia we have 4 x major banks and it would appear that some old school practices have evolved over many years. I think it is the same anywhere in the world where corporations need to continually report growth, so when there is no growth then pressure is put on to create growth, which leads to taking short-cuts, maximising revenue from un-suspecting/un-informed/un-educated clients as well as cutting costs.

All the best,
Cameron


commoyo
Sep 16 2018 at 06:35
2 posts
For first rule in trading, also open an account with regulated brokers. I avoid unregulated and offshore brokers at all cost.

ThinkMarkets to me is fine too. Read this review for detail https://55brokers.com/thinkmarkets-former-thinkforex-review/

Adribaasmet
Sep 16 2018 at 08:49
897 posts
commoyo posted:
For first rule in trading, also open an account with regulated brokers. I avoid unregulated and offshore brokers at all cost.

ThinkMarkets to me is fine too. Read this review for detail https://55brokers.com/thinkmarkets-former-thinkforex-review/


Really, trading with a non-regulated broker is too much risky since, almost all of the non-regulated brokers are market maker! In addition, market maker brokers are unplayable.

CoolKimOne
Sep 19 2018 at 20:08
12 posts
Thinkmakets is a solid broker. They have been around for years. I never found their spreads to be that low but everything else is perfectly fine.

Adribaasmet
Sep 20 2018 at 09:49
897 posts
CoolKimOne posted:
Thinkmakets is a solid broker. They have been around for years. I never found their spreads to be that low but everything else is perfectly fine.


How many years they have been providing their service actually?

AAST
Sep 23 2018 at 06:58
8 posts
jamesgwyther posted:
My belief, though I could be wrong, is that as long as the broker's liability partners are regulated then you are covered.
I use Hugosway these days as a broker. I am in the UK but you can use them in Canada.


thank you

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