would those good features warrant a good broker?

shappons

Private, 1st Class
Messages
66
hi, could someone educate me how safe the following features a broker claim?

1. regulated by Financial Services Commission(FSC)?
2. segregated customer accounts administered by Turnstone Group.
3.straight through processing(STP). Are there brokers really not market makers?

are those features good enough for me to put in a sizable amount of money?

thank you.
shappons
 

Pharaoh

Colonel
Messages
19,690
FSC of what country? Mauritius or somewhere else?

Segregated accounts should be in a large, well-known bank. Otherwise, it doesn't matter who administers them.

STP is desirable. The question always remains on whether the broker is telling the truth about whether it is really STP or a market maker.
 

FringFX

Sergeant
Messages
391
the broker should ideally be regulated by US NFA, UK FSA, and/or Australia's ASIC
it's sensible to put a tiny amount first. test the features, the platform, the feed for a few months. once satisfied, you can put in a decent amount.
 

Aesop02

Private, 1st Class
Messages
54
the broker should ideally be regulated by US NFA, UK FSA, and/or Australia's ASIC
it's sensible to put a tiny amount first. test the features, the platform, the feed for a few months. once satisfied, you can put in a decent amount.
Agreed test the waters first, look for reviews, ring their support with questions and see if they're helpful or clueless, that kind of thing. Don't drop 20k in straight away :D
 

f-man

4Xangels Representative
Messages
762
Run a basic Due Diligence Check before investing your money with any broker.
Check how long they exist and if there are any negative comments in any Forum about them. Positive comments count far less than negative comments!!!
If you want to take your investigation further, ask the professionals.
We at 4XAngels.com have chosen some brokers after detailed checks on them and we offer our clients monthly updated Reports on our brokers. Our clients will be the first to know if their Broker is changing. Timing does matter in Forex, in many ways!
 

Pharaoh

Colonel
Messages
19,690
One thing I like about professional level due diligence reports like 4xAngels produces - they often show the names of the people behind the brokerage. If something goes terribly wrong, it's nice to be able to attach names to a lawsuit instead of going after shadow companies that can just vanish.
 

Klem

Private
Messages
27
I lost all my money with broker regulated in Mauricius therefore I wouldn't say that FSC regulation would mean any safety for your funds.

hi, could someone educate me how safe the following features a broker claim?

1. regulated by Financial Services Commission(FSC)?
2. segregated customer accounts administered by Turnstone Group.
3.straight through processing(STP). Are there brokers really not market makers?

are those features good enough for me to put in a sizable amount of money?

thank you.
shappons
 

shappons

Private, 1st Class
Messages
66
hi pharaoh,
yes, it's in mauritius.
i have got the broker's file fodder on which it states those features.
it looks pretty impressive.

how do i know if those were true, like STP & segregated account?

thanks
shappons
FSC of what country? Mauritius or somewhere else?

Segregated accounts should be in a large, well-known bank. Otherwise, it doesn't matter who administers them.

STP is desirable. The question always remains on whether the broker is telling the truth about whether it is really STP or a market maker.
 

Pharaoh

Colonel
Messages
19,690
Show me a broker with claims that don't "look impressive". :p

As far as I know, the only thing the Mauritian FSC has ever done to a broker is to cancel a license. I've never heard of them ordering a broker to pay a client or fining a broker for any violations. Mauritian registration is better than no registration, but I wouldn't exactly call it regulation.

For segregated accounts, you need to find out what bank those will be held in. You need to check that out with the bank directly, since the broker could just throw out the name of any large bank.

Proving STP or not isn't always easy. One possible check is to see if they explicitly permit scalping. Ask them if they care if you keep trades open for an average of 5 seconds. If the answer is "no", then there may be processing, but it's not straight through.
 
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