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Regulation

Ramoss

New member
Hey guys, new here and looking forward to learning from you guys. I have been meaning to ask this question; does regulation guarantee a broker to be 100% good for the job?
 

imi2

Member
Regulations are important however it is not a 100% guarantee because there were many examples in the past where even regulated brokers turned into scam. SO i only suggest that we should go with a regulated broker which have some good repute in past and once we are done with the broker, it is necessary to withdraw profits on regular basis while leaving the capital behind.
 

loftrader

Member
The thing is if you want regulation to help in any way, you have to find out which agency is regulating the activity of the broker. In this way you know who or where to turn.
 

Ramoss

New member
Regulation doesn't really do much in my opinion, I would advise you go for a more credible broker with good years of trading conditions to their portfolio than one who is regulated.
 

Beloved

Member
The regulation of FX differs largely from that of Stocks or Futures. It is a decentralised market and what is traded is of different nationality on both ends of the deal.
 

imi2

Member
And most important thing is that this market is more transparent than stocks or any other trading in my opinion.
 

Aaronpp

New member
Regulations are important however it is not a 100% guarantee because there were many examples in the past where even regulated brokers turned into scam. SO i only suggest that we should go with a regulated broker which have some good repute in past and once we are done with the broker, it is necessary to withdraw profits on regular basis while leaving the capital behind.
It is true, there are regulated and known brokers that have gone bankrupt and many people have lost a lot of money. That's why it's important to informe very well, as well as withdraw your funds once you've made a benefit.
 

Beloved

Member
The Forex market is a decentralized global market and hence there is no one as such to govern the market, there is no central bank as such to govern it. However the Forex brokerage firms are regulated by governmental and independent supervisory bodies such as the National Futures Association, Financial Conduct Authority, etc, in order to ensure that the business is conducted ethically.
 

Ramoss

New member
The Forex market is a decentralized global market and hence there is no one as such to govern the market, there is no central bank as such to govern it. However the Forex brokerage firms are regulated by governmental and independent supervisory bodies such as the National Futures Association, Financial Conduct Authority, etc, in order to ensure that the business is conducted ethically.
It is suppose to be the way you have said it, but does it really work like that, are their works really checked by these agencies?
 

imi2

Member
Any broker can turn bad so no you can't trust a regulated broker 100%
There are several bad examples in the past where even a good paying regulated broker turned into scam and stop paying to its traders. So better to keep the necessary capital with any broker and withdrawing profits regularly to be on the safe side.
 

Zack King

New member
There are several bad examples in the past where even a good paying regulated broker turned into scam and stop paying to its traders. So better to keep the necessary capital with any broker and withdrawing profits regularly to be on the safe side.
I totally agree here. I tend to use unregulated brokers simply because i like the higher leverage for my trading style, and tighter spreads. But i do what you do, and withdraw profits regularly as i go along, just be on the safe side :)
 

Zack King

New member
Any broker can turn bad so no you can't trust a regulated broker 100%
So true. I think for the client, the only issue with using an unregulated broker, is the risk of losing your pennies, thats why when i use unregulated brokers, i ensure i withdraw consistently as i go along, as to not worry about it. The thing about regulated brokers what i prefer is that they usually offer higher leverages and tighter spreads, whereas regulated ones do not.
 

Beloved

Member
Never risk more than 1% of your account per trade and please please don't trade more if you have already lost 2% of your account that day. Take a break tomorrow will be the next fine day.
 
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