Quote:
Originally Posted by juxtatrader
As of right now a brokerage firm does not have to be regulated to be open. Some firms have decided not to become regulated until the NFA comes down with their exact ruling. Because of no exact ruling from the NFA it has cost some firms lots of money tryin to get regulated and then get slapped with fines that cost them even more money.
As far as FXDD their parent company is regulated and have heard from reliable resources their reasons for not being regulated and have to say they have a valid reason for not doing so yet.
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That's nice that you have heard why they are not regulated and that it is an alleged legitimate reason but as far as I and everyone else is concerned that's hearsay. Sure it costs time and money to become regulated but that's the point. Brokers who have chosen to go through the process think it is worth investing money into their regulation. Why? Because it gives their clients transparency and a forum to voice their complaints to a regulatory body. Does this protect a firm from going under? No but it sure is a step in the right direction. A step FXDD has not yet made which is why I wouldn't trade with them. So what if their parent company is regulated? That's not good enough for me. I want to know their net excess capital and to make sure that they can maintain a certain standard. If you feel comfortable keeping money with a firm like that then fine but I certainly don't.