Hello everyone, I wanted to pose a question to the attention of traders, but if brokers are regulated by the FSA (Financial Services Authority) why people choose non-regulated broker and then they go to complain everywhere who have lost their money, which the broker does not return the money or do not close positions in accordance with stop loss and take profit. Are really that stupid people to entrust their money to people who are advertising on the internet?
At least with regulated broker you have a chance to complain to the above institution. But it is not that useful. If you've been tricked for like a 100$, nobody will take you seriously. The only good thing about the regulated broker is that they can be forced to pay you money that you have on the account.
A lot of unregulated brokers offer attractive perks. I suppose a lot of it is due to people wanting the perks but not wanting to consider the risk. Which kinda means they aren't good traders, actually...
The other problem is that people 'feel' they've been cheated, but don't have any proof. It's just a lot better for their ego to say that they were cheated instead of realizing they didn't put the proper stops or make adequate risk assessment. Just because a broker isn't regulated it doesn't necessarily mean they are cheating: brokers often try to get some business before they go through the expense of registration.
I think nowadays the regulated broker is not yet a 100% protection against the scammers. Brokers are looking for more and more ways ways to make profit. So what I would really concern about is the broker's reputation.
regulacion is bullshit. you paid regulation in spread. broker must paid! regulation = big spread. best spread offer have unregulated broker.
regulation not support small traders, meabe 50 000 usd +. but for small trader not have time.
97% traders problem is no broker problem. traders not read condition. open ecn account, here is slippage normal, and says scaaaaam, scaaaaam. many traders not understand how to work market.
only says: MM broker is bad, ecn is good . and ecn have slippage and is bad.....
next problem : trading in news, not close position in friday (gap kill account), bad mm, stoploss in support area............................... best of is this : 500 usd and buy 2 lot :-D
i need profit, trade in unregulated broker. i do not have problem. 99% brokers is ok.
Regulation IS ONLY MARKETING strategy big broker. this compeny paid every month big money for many page and forum.....example : every broker have regulation, you open in 0,5 spread or in 2 pip spread? 99,9% people open in 0,5 !!!!!!
many people is partner for this broker, this broker paid big money for this partner. and this people says- you need regulation broker, go here, 2 or 3 regulation. go go go stupid trader, i need money :-D you not need this compeny.
!!!!!!!!!!!!!!!!!!!USE BRAIN PEOPLEEEEEE!!!!!!!!!!!!!!!!!!!!! USE Mathematicians. ITS SIMPLE.
I think the basic question is what is the regulation good for. I think it is necessary if the broker operates from countries with developed markets. From the customer point of view it acts like a two way insurance policy. First it should guarantee best execution practice. Second it enforces segregate accounts for customers and sometimes (might be always not sure here) the protection of customer funds up to a certain amount.
Everybody should be free to decide which 'insurance level' is the most appropriate as not all regulating institutions might have the same quality.
Well and it is definitely not for free (no insurance is) but unlike @dvejn I do not believe that non regulated brokers are somehow 'cheaper', but for sure they might have lower spreads and be more attractive for smaller accounts (sub $1000). It the last case most will burn their money anyway so there is no need for any fund protection.
And S/L hunting might be an other issue highly dependent on the broker business model and of course the S/L contingent to marketvolatility and traded asset.
Basically, brokers are going to function like any other business: if you want to develop a successful business, you need happy return customers. So any broker that's looking to stay in the market for the long term is going to have to maintain good business practices, because otherwise they will lose clients and they will gain a bad reputation that will prevent them from getting new clients.
Of course there are differences between how customer friendly each broker will be; but the basic rule is that scams don't last long.
ADVERTENCIA DE ALTO RIESGO: El comercio de divisas implica un alto nivel de riesgo que puede no ser adecuado para todos los inversores.
El efecto de apalancamiento crea un riesgo adicional y una exposición a las pérdidas. Antes de decidirse a operar con divisas, considere cuidadosamente sus objetivos de inversión, su nivel de experiencia y su tolerancia al riesgo.
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