Hi guys, first-time poster here.
So, I know that I should use one of many, many regulated Forex brokers, but I started with an unregulated one and never had any major issues with it. Should I really jump ship to a regulated one or, having the knowledge that’s an okay broker it’s fine to stay where I am.
Move to a regulated one. thanks, bye.
You’re in a car with no brakes. Its rolling slowly towards a cliff. Its starting to pick up speed.
Is running over a cliff really that bad?
regulation is a complicated issue in Forex trading , sometimes traders feel , its more safe sounds and sometimes feel it just a formality , nothing without it.
Do realise that “regulated” does not just mean the broker has an authority looking out for them committing criminal acts or trading against their clients or cheating their clients out of positions and money. Regulated brokers in the UK must also join a scheme which guarantees that if the company fails, the clients’ deposited funds will be reimbursed.
This is a kind of insurance scheme. The company can be completely innocent and may be as well run as any other. But if they go bust, and it may be through no fault of their own, you will get your money back.
I was feeling the odd one out, because so far I’m pretty comfortable with my unregulated broker. To be clear, I don’t deal with a huge stack of cash, but still weird.
Who do you use please MrJKoe?
Don’t get me wrong the insurance aspect of UK regulation is a nice perk but depending on where you are from I think there is something to be said for unregulated brokers.
There is quite a big thread here that covers a lot of them and ranks them in terms of how trustworthy users have found them.
Worth a read through if you want an opinion that doesn’t instantly shut the conversation down as soon as the word “unregulated” is mentioned.
I started my career using regulated brokers and switched to unregulated to compound a small account with 500:1 leverage, To be honest ive used them ever since fast withdrawals, good leverage and quick market execution is all i need.
I trade with unregulated broker as well. I have not had any issue yet. Regulation with Forex brokers is a formality. When things go wrong, I do not think that regulated brokers take care of retail traders.
From what I have researched and experienced myself there is a lot to be said about regulations, 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.
Also got to mention JP markets, Pepperstone, CPM and other shady cases. They are regulated right? And what that’s not stoping them to play against their clients.
In short i prefer to have good trading conditions and smooth trading at all than to rely only on regulations.
But then how do you know which among the unregulated brokers are the ones you can trust? 
Check the CFTC thread, there is a trusted brokers list in there.
Most of the traders move to unregulated ones because they offer higher leverage and with regulated brokers they provide client’s fund insurance only.
Research, test and etc.
I have an account with an unregulated broker and despite the warnings I’ve never had a problem and actually like them better than Oanda (which is where my old account was). I think there are solid ones out there but of course always proceed with caution and read user reviews to get a better idea of who is and isn’t trustworthy.
This is partly a myth. I worked with a significant number of unregulated brokers, but I was quite happy with the results of their work.
now you feel calm, thinking… Ok so far so good… But is not, sooner or later… And dont you want to see hiw your bucks blown away… I can name many trust, real investorsand even here some rules to look forc broker Regulation is a MUST… FX, cryto are in a OTC world… So… is like gambling on brokers… Australian brokers are serious
There are still a few offshore brokers that are in some form regulated. Look into Number 1 Capital Markets. That’s who I use and they are wonderful. A lot of these “traders” recommend using a regulated U.S broker because they barely know what they are doing. AND U.S. BROKERS ONLY GO AS HIGH AS 50-1 LEVERAGE. Most of them are 30-1. Which makes making big bucks impossible unless you start out with at least $10,000.
I have accounts with both regulated and unregulated brokers. I spread my bankroll across multiple brokers in case something nasty happens with one of them. If I’m honest I have to say that the unregulated brokers offer far better trading conditions. As long as you do your homework on ALL of your brokers you’ll be fine.