What stops brokers to...

[Viator]

What stop brokers to...

I see way too many fraud complains about "brokers"...and i look at MT4 with my broker curently 19.000 ppl online trading...let assume that each of 19.000 was invested 1000$...what stops broker to leave the stage with full pockets?

 

[Pharaoh]

Quite a few un and under-regulated brokers have vanished, complete with all the money in people's accounts.

The only thing that can prevent this is regulation by a regulator capable of working with law enforcement. Even then, bad things have been known to happen.

 

[Viator]

Quite a few un and under-regulated brokers have vanished, complete with all the money in people's accounts.

The only thing that can prevent this is regulation by a regulator capable of working with law enforcement. Even then, bad things have been known to happen.

Than why we support them with our money,it is irrational to do so,or we should ask for more government regulation which means tax paying for additional earned money and this leads to normal leverage.Some of brokers running casions business long time before they came to be "brokers".I'm running hotel - have some spare money - want to participate in FOREX - not sure do i want that anymore...there is no sense to me that i invest 50.000$ in "brokers" with information level of "I tell you bro it is good broker!"
First suspicious thing is enormous leverage which i'm sure does not have real deposit at broker bank account.

 

[Triantus Shango]

ok viator, don't give up yet. try RJOBrien in the UK (not a retail broker, institutional level) or Dukascopy Bank or LMAX (UK) which are a mix of both. and then try to get above the 100K-250K account equity mark and you'll be able to open an account with the institutional branch of either FXCMPro, GAIN Capital GTX, and a bunch of other institutional/prime brokers. the key is to get to the point where you have the cash to open an account with a prime broker and gain access to ECN venues such as Hotspot FX, FXAll, Integral where a lot of the liquidity is and execution is stellar compared to some of the crap retail traders have to put up with.

Than why we support them with our money,it is irrational to do so,or we should ask for more government regulation which means tax paying for additional earned money and this leads to normal leverage.Some of brokers running casions business long time before they came to be "brokers".I'm running hotel - have some spare money - want to participate in FOREX - not sure do i want that anymore...there is no sense to me that i invest 50.000$ in "brokers" with information level of "I tell you bro it is good broker!"
First suspicious thing is enormous leverage which i'm sure does not have real deposit at broker bank account.

 

[Pharaoh]

Than why we support them with our money,it is irrational to do so,or we should ask for more government regulation which means tax paying for additional earned money and this leads to normal leverage.Some of brokers running casions business long time before they came to be "brokers".I'm running hotel - have some spare money - want to participate in FOREX - not sure do i want that anymore...there is no sense to me that i invest 50.000$ in "brokers" with information level of "I tell you bro it is good broker!"
First suspicious thing is enormous leverage which i'm sure does not have real deposit at broker bank account.

There's no reason anyone has to support unregulated brokers. There are plenty of regulated ones out there. One other thing to look for is absolute verification that your money is really in a segregated account. This protects your funds if the broker goes bankrupt.

 

[Viator]

I had found one domestic bank which offers forex trading,they give me contract to sign where i take responsibility for trading my money but they (bank) ensure that i will not exceed predefined limit if trade goes wrong.It is fair and simple - i have account open at that bank - all earned money is available at any time.Platform they use is much different than MT4 with far better oscilators.Minimum deposit is 3000$, i was aiming at 50.000$ but they demanded leverage max 1:20,which is more than acceptable.
For me all this is a standard procedure when one have to deal with any company foreign or domestic.CEO and managers names,commerce court registered company with real address,all info about protfolio and funds are publicly available.I have like many others credit card which is valid anywhere in the World - but stands back in amazement when you will find out that is not valid for 99% of "brokers" i have to use some of "mediators" (skrill,paypal..etc) to recive my money but it is more than valid when one need to deposit funds.You will find at almost every "broker template" website HUGE button "DEPOSIT" but "WITHDRAWAL" button you should look at the Terms&Conditions
Colored banners of "brokers" and every one of them demand to be trusted;but the "company" info is not available for public - now all that feelings copy-paste to bank where you take your salary and think how you feel about it.

 

[Triantus Shango]

viator, i am curious about the platform you mentioned. could you tell use which bank is it?

re leverage, you're correct. in the professional stratosphere, crazy leverage is frowned upon and 10:1, 20:1, and 30:1 is more common than 100:1 or 500:1. maybe the retail brokers give us a big gun so we can shoot ourselves in the foot and head faster. then they pick our pockets clean.

 

[Viator]

viator, i am curious about the platform you mentioned. could you tell use which bank is it?

re leverage, you're correct. in the professional stratosphere, crazy leverage is frowned upon and 10:1, 20:1, and 30:1 is more common than 100:1 or 500:1. maybe the retail brokers give us a big gun so we can shoot ourselves in the foot and head faster. then they pick our pockets clean.

It is Hypo bank originated in Austria,very satisfied with platform - earned some money today and most important money is available.Retail traders already taking risk with huge leverage,good business practice tell us that is unethically to do so....then sending money and copy of ID to companies with no name and face..and so.Every country have financial services supervisory agency mostly it goes this way : they put investment alert for potential investors that broker is not authorized to carry out activities within country because financial services supervisory agency cannot monitor the lawfulness of business and investors should exercise extreme caution when dealing with such brokers,in that case financial services supervisory agency cannot guaranteed for investors money...How many "web template brokers" have licence to work within every country?

 

[Pharaoh]

Intriguing. If more banks offered this service, it would put some real pressure on retail brokers to be more open and transparent.

 

[Viator]

Intriguing. If more banks offered this service, it would put some real pressure on retail brokers to be more open and transparent.

I look at that in this way - ignorant behavior of some brokers - many complains - created opportunity for banks - if behavior of brokers in general was ethical in the first place they will never create such opportunity for banks.