I am planning to invest a bigger amount in forex trading. As being in UK other traders always suggest going with FCA regulated firms. I want to know if FCA would actually help in case of any discrepancies with larger investments? How much can they be relied upon?
Need opinions from other folks here. Thanks!
Almost everything done in enforcement by any government agency can be described as too little too late.
I would depend on the FCA to set strict standards and then be very clear whether they have been met or broken. This could very much help in trying to recover money. But as for whether the FCA would actually do anything on behalf of an investor to recover money lost, I highly doubt it.
Don’t fall for bigger investments if starting new, only play with the amount you are comfortable with.
Keep your eyes wide open with the investments offering high returns. Though FCA passes valuable info on dealing with higher investments, it’s always better to tighten your shoelace.
Also, don’t forget the risks that come along.
Do make a mental note of these investments, they don’t fall under FCA regulation:
- land for development
- hotels or hotel rooms
- UK or international forestry
- storage units
- commodities (eg gold, bamboo, diamonds, graphene)
- student accommodation
- sustainable energy
- Wine
- overseas agriculture
- parking spaces
Other aspects I can add - risk levels and financial advice.
For risk level, I will repeat the same, as no investment is without risk.
Though I invested small initially which is a staple for all new traders, I was still making losses. IG was the account I used when I started. I did have the sense of security with my investments in case something went wrong with 2 of my brokers (fxview and IG) as they were FCA regulated, while my other broker blackstone500 was unregulated.
Just a matter of choice, wanted to invest with both.
Fca regulated firms sure compensate but not in the case of low performing investments.
For that - get a financial advisor.
To find one, check the FS register where all advisors are listed who are regulated. References also work the best as you have the idea of their experience
I might have agreed to some extent, was flicking through their most recent news on survey they conducted in UK, where they found the majority under low financial resilience. They even claim they are offering free advice to folks under any debt along with a support package.
About recovering from loss, what’s your view on the benefitter? Like I am trying to understand if not the investor, then is it the financial firm? Conclusion? Might sound confused here.
Sorry, I don’t understand. Are these questions really for me?
@tommor Yeah, apologies for rushing it all at once.
As you were saying FCA might not work in favor of the investor, then who is another one involved except the broker? Just curious.
Thanks for briefing that up quite well, is there a way we can verify if the firm is FCA regulated or not? Asking as I am yet to start trading. In the learning phase currently.
Sure, thanks.
What I mean is the FCA is not primarily charged with protecting consumers. Their concern is to ensure the smooth and sustainable operation of the financial services industry. Part of this does mean excluding dodgy firms who undermine confidence in the industry, who scare investment away and so cause damage to all the legally compliant firms. But I wouldn’t expect them to chase after one of these dodgy companies to recover someone’s lost money. That’s what lawyers do, for a fee of course.
FCA provides a firm registration number which can be found in the FCA register.
For a quick check and to clear you on this a bit, I am taking the example of my broker - fxview
Go to https://register.fca.org.uk and then type the name, when I need to check for fxview, I can see their firm id and other details here:
NewRegister
Hope this helps
Regulations apart, forex itself is a sink to drain your money.
oh well, how much trading experience do you have?
I am yet to be born in the world of trading. Just read a few articles on forex being risky.
I believe that everything worthy can only be had through risk. So true for forex! You can’t expect to gain big without losing anything at all. It is possible to make a quick buck but don’t expect to not lose even a penny. That’s it. Wish you luck.
While FCA may not directly involve itself in helping you sort out disputes with the firm, going along with an FCA approved firm will certainly increase your chances of not being swindled out of your investments.
It’s good that you want to invest a bigger amount. But before that, make sure that you know what you are doing.
They are at least supposed to, but how much they actually help I don’t really know. I think frankly these regulations are just for mental satisfaction nothing more.