Can We Trust Regulated Brokers These days?

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ASIC is fake as it seems. What are they even doing? Well, this is what I keep asking myself. Are you wondering what I am talking about? Then here is the breaking news GTL Trade Goes Belly Up Down Under | Forex Magnates . The question is, is every regulated broker really regulated? Well, this is a warning and I think we traders should very careful. Forget about what the regulatory bodies preach. There is no money security anywhere. The link above is a proof. Right now, when you are looking for a good and reliable broker to use, I think you should not look at their regulation license, rather you should look at their dealings with clients and their track record. GTI has done this before and this is the second time. If a trader knows this, he wont register with them. So please check carefully for past records before registering with any broker. Unregulated brokers are very good these days because they offer higher leverage and low spreads. The only thing that the regulatory bodies promised us (fund security) is just a mere saying. Beware!!!
 

I want a response from everyone who has read this post. What is your opinion on this? Somebody?

 

You can not trust anybody that is in money business.*especially the ones that are un a business of holding your money), Starting from shadow banking to trading against you with your own money ... If they think that they have to do it to save their selves from a result of their own wrong decisions they will do it. So, no trust. Contracts that are colectable

 
techmac:
You can not trust anybody that is in money business.*especially the ones that are un a business of holding your money), Starting from shadow banking to trading against you with your own money ... If they think that they have to do it to save their selves from a result of their own wrong decisions they will do it. So, no trust. Contracts that are colectable

Thank you for your view. Now we are getting somewhere. Does anybody wish to say something about this? Or at least tell us how secure regulated brokers can be?

 

of course we have to trust on brokers with them we are attached. We can not do trading alone without their connection . They are a bridge btween market and us. We shouls select good broker for trading to make our money d=safe with them .For this you should invest a little amount in start until you are not confident that they are working fair.

 
Master Forex IB:
of course we have to trust on brokers with them we are attached. We can not do trading alone without their connection . They are a bridge btween market and us. We shouls select good broker for trading to make our money d=safe with them .For this you should invest a little amount in start until you are not confident that they are working fair.

Thank you for you view. But the main question is, will you prefer a regulated broker over an unregulated broker? What benefit does regulated broker offer that makes them better?

 

I just trust broker that providing me a good PAMM account

 

Whether (or not) a broker is regulated seems to make no real difference to the client - it certainly offers no protection (despite what the authorities might proclaim!) ... you only have to look at the likes of PFG Best, MF Global and Refco to know that hundreds of millions in clients' funds were embezzled right under the noses of the supposedly ever-vigilant and "client protecting" NFA & SEC. Heck... even Bernie Madoff was regulated!!!

Having worked in a recently-regulated industry, I can say that the *only* difference was the huge additional reporting burden and a slew of new rules that did nothing more than prevent perfectly good business from being transacted.

I've had live accounts with probably 15 brokers in my time (all regulated) but my all-time favourite is Tallinex (who aren't - they're an EU-based broker, but spot Forex simply isn't a securities product in their country so they can also accept US residents and provide them with high leverage and full hedging). In my personal experience, nothing is too much trouble - they credit deposits amazingly quickly and all my withdrawals have been wired the same day. As for trade execution, I can only say it's been excellent - I've been with them for about 7 months but I've never seen a requote (Alpari could certainly learn a lesson there!)

Anyway, just my 2-cents :-)

 
Neo:
Whether (or not) a broker is regulated seems to make no real difference to the client - it certainly offers no protection (despite what the authorities might proclaim!) ... you only have to look at the likes of PFG Best, MF Global and Refco to know that hundreds of millions in clients' funds were embezzled right under the noses of the supposedly ever-vigilant and "client protecting" NFA & SEC. Heck... even Bernie Madoff was regulated!!!

Having worked in a recently-regulated industry, I can say that the *only* difference was the huge additional reporting burden and a slew of new rules that did nothing more than prevent perfectly good business from being transacted.

I've had live accounts with probably 15 brokers in my time (all regulated) but my all-time favourite is Tallinex (who aren't - they're an EU-based broker, but spot Forex simply isn't a securities product in their country so they can also accept US residents and provide them with high leverage and full hedging). In my personal experience, nothing is too much trouble - they credit deposits amazingly quickly and all my withdrawals have been wired the same day. As for trade execution, I can only say it's been excellent - I've been with them for about 7 months but I've never seen a requote (Alpari could certainly learn a lesson there!)

Anyway, just my 2-cents :-)

So, it is true. All this while I thought I was the only one who have come to see that there is really no difference between a regulated broker and an unregulated brokers as there is no 100% fund security. Thank you for you comment. Does anyone wish to dispute these facts?

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