Troops,
I have my own issue with a scam broker (Forinvest) who it seems is registered in Wilmington Delaware. However, I responded to a member who has a problem with FIG Solutions who it seems is also registered in Wilmington Delaware.
Correlation:
Now I am beginning to draw a parallel here. Forinvest offers 1pip on all majors, and FIGfx offers 1pip on all majors. This is a tall order when at times the interbank can't offer 1 pip on cable let alone on EUR/USD. So how do these brokers make any money?
I decided to check out how to register a company in Delaware. This is what I found out:
There are many other distinct advantages to registering or chartering your business as a Delaware corporation. Delaware’s business laws are some of the most flexible and pro-businesses laws in the nation. You can become a Delaware corporation from anywhere in the world. You do not have to live or conduct your business in Delaware.
You can register as a Delaware corporation by telephone, Internet, or fax through a recognized agent from anywhere in the world. Another advantage for some is the fact that a Delaware corporation does not have to be identified in the public state records. No income tax is charged if your business is out of state, although this is the case with most out of state businesses.
The corporate franchise tax for a Delaware corporation is very low, in some cases as low as 60 US dollars (USD). There is also a filing fee of around 25 USD, and if the company does not conduct business that is the only tax they must pay to Delaware. If you are a limited liability company trading as a Delaware corporation, you must also pay an annual franchise tax of 200 USD.
The Hustle:
Now if you were a scam broker or a dodgy broker it would be advantageous to register your company in Delaware via the internet, fax, or telephone. Being registered in Delaware would give, the unsuspecting investor, the impression that the broker has an office in the USA and can be tracked down and sued if he ROBS you.
It is common knowledge that the US and the UK have a good reputation when it comes to regulation. I think this is what many scam brokers prey upon. If you are considering investing with a company who is not regulated in the USA but is registered in Wilmington Delaware I would suggest you do a bit more research before handing over your cash.
Now I am not suggesting that all brokers registered in Wilmington Delaware are scam brokers. What I am suggesting is that if a broker is promising you the sun, moon and stars, and this broker has a poor reputation on the FPA or other forums, and you cannot seem to get in contact with this broker via telephone, and they are registered in Wilmington Delaware... CAVEAT EMPTOR (BUYER BEWARE)!
Conversely, if you find a broker who is registered with FINRA, SEC, CFTC, and that broker will keep your funds in an FDIC insured, segregated account I think you would be on a lot better ground than a 1pip spread promise, unregulated broker.
Brokers are no different than any other service provider. You get what you pay for!
Just a heads up troops!
I have my own issue with a scam broker (Forinvest) who it seems is registered in Wilmington Delaware. However, I responded to a member who has a problem with FIG Solutions who it seems is also registered in Wilmington Delaware.
Correlation:
Now I am beginning to draw a parallel here. Forinvest offers 1pip on all majors, and FIGfx offers 1pip on all majors. This is a tall order when at times the interbank can't offer 1 pip on cable let alone on EUR/USD. So how do these brokers make any money?
I decided to check out how to register a company in Delaware. This is what I found out:
There are many other distinct advantages to registering or chartering your business as a Delaware corporation. Delaware’s business laws are some of the most flexible and pro-businesses laws in the nation. You can become a Delaware corporation from anywhere in the world. You do not have to live or conduct your business in Delaware.
You can register as a Delaware corporation by telephone, Internet, or fax through a recognized agent from anywhere in the world. Another advantage for some is the fact that a Delaware corporation does not have to be identified in the public state records. No income tax is charged if your business is out of state, although this is the case with most out of state businesses.
The corporate franchise tax for a Delaware corporation is very low, in some cases as low as 60 US dollars (USD). There is also a filing fee of around 25 USD, and if the company does not conduct business that is the only tax they must pay to Delaware. If you are a limited liability company trading as a Delaware corporation, you must also pay an annual franchise tax of 200 USD.
The Hustle:
Now if you were a scam broker or a dodgy broker it would be advantageous to register your company in Delaware via the internet, fax, or telephone. Being registered in Delaware would give, the unsuspecting investor, the impression that the broker has an office in the USA and can be tracked down and sued if he ROBS you.
It is common knowledge that the US and the UK have a good reputation when it comes to regulation. I think this is what many scam brokers prey upon. If you are considering investing with a company who is not regulated in the USA but is registered in Wilmington Delaware I would suggest you do a bit more research before handing over your cash.
Now I am not suggesting that all brokers registered in Wilmington Delaware are scam brokers. What I am suggesting is that if a broker is promising you the sun, moon and stars, and this broker has a poor reputation on the FPA or other forums, and you cannot seem to get in contact with this broker via telephone, and they are registered in Wilmington Delaware... CAVEAT EMPTOR (BUYER BEWARE)!
Conversely, if you find a broker who is registered with FINRA, SEC, CFTC, and that broker will keep your funds in an FDIC insured, segregated account I think you would be on a lot better ground than a 1pip spread promise, unregulated broker.
Brokers are no different than any other service provider. You get what you pay for!
Just a heads up troops!
