Forex brokers, FX scams and regulators

Para47 · (#1 (**permalink**))

I am a new forex trader with about 01 year experience. I wanted to find a GOOD BROKER as I am not happy with the present broker. However, when I checked the blogs and complaints sites in the internet, I find that most of the brokers are not covered by proper regulator. Even the brokers covered by some regulating body are not up to the standard and could see lot of un resolved complaints.

Is there any process or can we push the international law makers to press all forex brokers to obtain the membership of an approved regulator and that regulator to monitor the activities and accept any complaints? It is not ethical to allow all the scammers to get in this multi trillion dollar market and give a free hand to play hell with investors since the broker is registered in one country and most of the investors are from different contries having no control at all on the activities of the broker.

It would be better to allow only brokers registered with proper regulating body to operate and such regulator should monitor the activities of the broker and investigate any complaints. At the same times there should be some kind of international control over such regulators also if they do not follow the proper procedures.

This is a market worth several trillion dollars and I think it is time to keep the activities under some control.

Can we push the international law makers to do some thing about this? I thought to write this as some one has to start it.

cowmadagan · (#2 (**permalink**))

erm...if that happened, this site would cease to have a purpose....

just sayin...

Stony · (#3 (**permalink**))

@ Para47

Sonds like a nice idea, but it isn´t. Reality would show that international control and regulation would simply kill the forex retail market. Look at the new idiotic rules of NFA an CFTC. We do not need regulating authorities that are unable to enforce their own regulations properly and in time. Strict enforcement of existing laws concerning fraud would be enough!

Pharaoh · (#4 (**permalink**))

Even the "unregulated" bucketshops that are ripping people off are violating some sort of international fraud laws. Hunting down, extraditing, and imprisoning a few of these would cut down on the fraud rate considerably.

Stony · (#5 (**permalink**))

Quote:

Originally Posted by Pharaoh

Even the "unregulated" bucketshops that are ripping people off are violating some sort of international fraud laws. Hunting down, extraditing, and imprisoning a few of these would cut down on the fraud rate considerably.

Exactly. That´s what I mean. Kill 'em!

Para47 · (#6 (**permalink**))

Agreed. Some of those bucket shop owners should be dealth with properly, but problem is how to do it!

Can we, forex traders, get together and push the international law makers to do some thing? We have to make a big noice for that.

Stony · (#7 (**permalink**))

We should not make to much noise about our forextrading. International law makers are already eager to forbid high risk and leverage-based trading at all (the CFTC-10:1 leverage rule gives us reason enough to be concerned), which is exactly what we do. The only way not to get scammed by scammers is to avoid them, kill them if we find them (one by one, since general extinction will prove impossible), and to find out those few decent brokers that exist - somewhere....