Regulated Brokers are no longer better than unregulated brokers

[Emibluz]

This is what I think and I have my solid reasons. If you think otherwise, can you simply tell me why regulated brokers are better than unregulated brokers, because right now I really need good reasons. Also, please do not forget to state how much you have benefited by trading with any of them. Thanks

 

[fxgermany]

I think that in combination with a compensation scheme regulation can bring some added value, but in general a lack of regulation will not prevent me from opening an account if a broker meets my other requirements.

It also depends on the regulation authority and as far as I am concerned brokers regulated in e.g. Malta are simply not regulated.

 

[samiPro]

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

Maybe the NFA monitor trading complaints, but other regulators are simple ways to bring income (capital requirements) to a jurisdiction

 

[tabalo]

I remember some words:
If a regulated broker cheated you, if you cannot get your money back, at least someone will go to jail

Actually I think regulation broker is better than unregulated so I choosed HotForex and FxCM because they're regulated.

 

[Emibluz]

I think that in combination with a compensation scheme regulation can bring some added value, but in general a lack of regulation will not prevent me from opening an account if a broker meets my other requirements.

It also depends on the regulation authority and as far as I am concerned brokers regulated in e.g. Malta are simply not regulated.

It all boils down to us when choosing based on what we really need. If only regulated brokers could offer better trading condition and if only we can look beyond regulation to find better services. I almost agree with you; if a broker offer very good services, I can trade with their platform. But that broker must have a nearly clean sheet.

 

[Emibluz]

I remember some words:
If a regulated broker cheated you, if you cannot get your money back, at least someone will go to jail

Actually I think regulation broker is better than unregulated so I choosed HotForex and FxCM because they're regulated.

You may be right. But how many regulated scam broker agent have you heard of that went to jail. FXCM has faced alot of court cases over the years, but the question is did the traders benefit in anyway?

 

[tabalo]

THat doesn't mean exactly someone goes to jail, I think it's mean the important of making clear about your issue when you report it to the regulator as FSA, FSC. I think you get your money easier of at least you have someone to report about broker's their bad activities.

 

[Fxpipper]

I use both sorts from FXCM to Traders way, Alpari - no issues and the reason I use both is that my trading requirements vary and so far, these brokers manage to meet it, frankly there ain't much diff between the two..and complaining about a regulated broker is not going to get your money back..

 

[Emibluz]

frankly there ain't much diff between the two..and complaining about a regulated broker is not going to get your money back..

This is exactly my point, some broker's use regulation as a face-cover, claiming your fund will surely be given to you if they go bankrupt. This is a big lie. As far as the internet is concerned, you can't get your money back when it's taken. Practically, there is no difference between regulated and unregulated brokers. And if this is the case, then unregulated brokers have the upper hand when it comes to offering better trading conditions.

 

[Fxpipper]

This is exactly my point, some broker's use regulation as a face-cover, cl...offering better trading conditions.

Damn right, and of course when funds go poof, there ain't much of a recourse..not that all the regulated brokers go dark, just a few..so regulated or not, you will need to do the research.

 

[rrayne20009]

This thread has somehow taught me about what is regulation in a forex broker.At first,I think only about 'fund safety' when i heard about the word regulated.

 

[Akriti]

great question! ...So, from my perspective.... regulation is not a guarantee... regulation may serve really just a cover for a company.. regarding going to jail... WHO KNOWS?? .. Also.. be sure if you lose big amount you will not care that they go to jail )))) ... It won't return your money back to you .... personally for ME, money INSURANCE is MORE IMPORTANT... in this case, I WILL GET BACK MY MONEY... SO .. I don't want anyone goes to jail.. I just want to know that if my money is lost, someone... compensates ... that's it...so... I don't care about regulation.. I care about insurance!

 

[inggo]

this is just a personal opinion, usually unregulated brokers start really good, of course they need to build up a name at the beginning but the thing is, with unregulated brokers, there is no one to keep then in check, meaning the possibility of them getting bad or scam is bigger, unlike regulated brokers where they are forced to be updated to the standards of their regualtions and another thing, it serves as a prevention since there will be sanctions if they do not comply. ill go for a regulated broker since the possibilities or probabilities and odds are in their favor mosly

 

[David Train]

I think when you trade with a regulated broker, there is a chance they will not cheat you.
So, I would prefer trading with a regulated broker.

 

[Emibluz]

THat doesn't mean exactly someone goes to jail, I think it's mean the important of making clear about your issue when you report it to the regulator as FSA, FSC. I think you get your money easier of at least you have someone to report about broker's their bad activities.

On hearing the prospects of compensation, we run after regulated brokers. Try go do your research and you would discover that since the PFG Best scandal, not every victim has gotten their money back. Even sometimes, regulators would refer you back to the financial departments of the evil scamming broker; and when you get complaining to them, the customer care blocks you after feeding you severally with disclaimers. Is this really the compensation we run after?

 

[John_Davy]

Thanks for this informative post.
Still i would choose a regulated broker rather than unregulated brokers,
This can comes handy for future disputes.
But in the end it is you who will make the decision, Just keep in mind that even a regulated brokers is no exemption in cheating you.

 

[miles]

If at all that regulated brokers do not exist, I dont think traders will make deals in the forex market nor orders will be executed. So to me regulated brokers are far more better than unregulatd brokers.

 

[Emibluz]

I think when you trade with a regulated broker, there is a chance they will not cheat you.
So, I would prefer trading with a regulated broker.

You are one funny dude. I guess you have not heard of the sophisticated recent software used by only the big and regulated brokers to manipulate slippages and the likes to steal from traders. Have you not been reading the news about countless court cases filed against these brokers. This means that is there is any chance of cheating, it is a high end for the regulated brokers. I can't figure out what is wrong with them. Has regulation pushed them to a tight corner, where they have to start biting their clients?

 

[miles]

Well, I dont think I agree that unregulated brokers are better than regulated brokers because with regulated broker your orders will be executed on the interbank market and services will be offered to you as long as it's regulated.

 

[miles]

I guess, it's better to use a regulated broker that you know your money will be saved with than using unregulated broker that is not license under the regulatory Authorities.