How Forex (Brokers) work?

[D-Trader]

Hi Cyclon, As you write that stock brokers also keep our funds in thier accounts and there is no difference. But there is a big difference, If you open an account by stock broker you fund money and you can withdraw from your account anytime you want. But you must send a request to forex broker. Why not is so by forex broker like stock broker.

Hi Sharma. First, I am not blamming here to brokers, I just came to conclusion that broker keeping our funds in thier accounts and we are only able to get our money after requesting them "Please" return me a part of my funds. Actually this is your money.

 

[fixaprobl]

All forex brokers take is becoming licensed.To be a full service broker you’ll need to have the appropriate securities license & fill out a registration form. If you wish to simply be a business broker. It’s important to know that licensing is different depending on which state you live in and it’s not always acknowledged if you move from state to state. The biggest hurdle all forex brokers have faced was becoming registered. Once you’re registered you’re ready to start trading.

 

[Pharaoh]

Most brokers don't move from state to state. The little bucketshops jump from country to country to stay one step ahead of the regulators and to make it harder to bring legal action against them.

Find a broker that's been at one address and with one good regulator for a long time and you'll have a better chance at not getting ripped off.