Regulating Forex Traders.

Thos1087

Private, 1st Class
Messages
53
Hi there,

I am from New Zealand and tried to open an account with a broker in Australia.

I was told this is no longer possible as our Government is prohibiting traders from operating overseas accounts unless the traders are licensed. Indeed I discovered that NZ was no longer on the l country list on the broker's website.

To be licensed you must have $500.000 and years of experience as a professional in the finance industry.

This requirement is also being rolled out in Europe I believe.

This new requirement has been sprung on traders by stealth and I don't hear anyone talking about it.

I have been working eight years on various EA's and planned to finance my retirement this way.

Can we please have some discussion on this.

By the way I am now also blocked from viewing certain FOREX websites.

Many Thanks,

Thos.
 
The issue with trading restrictions in some countries makes us or to confirm professional ocupation of trader forex or trade with offshore brokers that do not fall under this rule. According to this, I found for myself a few brokers who do not impose a restriction. So far, I do not have the opportunity to register as a professional.
I would like to know if there is someone here who has already confirmed being of professional trader?
 
It's very very unusual that you can't do anything like that from NZ to AU and to some other issues you listed. It's the first time in my life I see Australia are so unfriendly to the New Zealand in that matter for example. $500k as a trader not as a broker ?LOL
 
Actually, I find that there is nothing bad with this regulation. If you are not regulated broker, then you operate somewhere in the gray zone. So, it is quite normal to be officially registered as a broker, if you want to conduct oversees operations
 
That ca be a long story but...
From what I have researched and experienced, there is a lot to be said about both, however, excuse my biased ass, but I am an advocate for unregulated brokers as I feel there are more advantages for the clients trading via an unregulated broker compared to regulated brokers.

My reasoning:

Becoming regulated, for the broker as a company is a very expensive thing to do, therefore they look at recuperating those funds back in, VIA their clients. SO, what they tend to do, is bump up the client costs through widening the spread, offering lower leverage, and bumping up the trade commission charge per trade that gets placed.


UNregualted brokers on the other hand, do not have this grand expense, therefore they make money via alternative ways, but allow the clients a little more freedom for example by offering a higher leverage- which I myself find to be more useful and beneficial to my style of trading, better spreads and lower trade commissions.

That’s the story in short for me.
 
In the long run it's still better go with regulated broker because I am damn scared to do such things via other ways no matter how you really put it. For example you started earn big and it would be issue to withdraw big money from unregulated broker I think.
 
In the long run it's still better go with regulated broker because I am damn scared to do such things via other ways no matter how you really put it. For example you started earn big and it would be issue to withdraw big money from unregulated broker I think.
I`m sorry to said it but you can have the same issues with regulated brokers too and there`s a lot of examples for this.
 
500k AUM are relatively low for a trader to apply as a licensed private fund manager compare to most country. Try to look for some really decent broker and as I know, you don't need any licensed unless your AUM exceeds USD 3 mil.
 
I see quite a lot of comments on social media regarding unregulated brokers. In my opinion i believe that unregulated brokers tend to have extra freedom which then benefits the customers i.e higher leverage. People do seem scared of trusting unregulated brokers, however from what i see, the brokers that seem to treat their customers seem to be regulated.
 
It's all up to you with which broker to go to, you really can have something like that in the long run, do you want it there really or not ? I do not seems to care about. You can set aside some amount of money for everyone else out there and try to play with.
 
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