Hi all,
I am based in the uk and decided to use AU broker due to favourable leverage
My broker is regulated by ASIC, am i protected as non ciziten of AU / non resident in case they go bust?
I know client money is in westpac bank segrated for client accounts
Many thanks
I’m in the UK and switched from Fx Pro to IC Markets, who are based in Australia I believe, not sure if we’re talking about the same broker here.
They are not FCA regulated in the UK but the money is kept in a segregated account.
I don’t think we would be protected much should they go bust. For this reason I always withdraw profits every night.
Yep same one, i am worried to as if they go bust, i am not crossing content to go to court and ask for my hard earned cash
Do you use paypal to withdraw?
Would you mind sharing if paypal charges to receive money from them?
I received my 1 k via paypal and wasn’t charged but do know paypal charges for receiving money so puzzled as to who is picking up the cost of the transfer
Yeah that is the main risk, which is why I withdraw profits daily, better to be safe than sorry. Although I cannot see them going bust anytime soon.
I do not use PayPal to withdraw, but the fees should be zero. I used to withdraw using PayPal via my old broker Fx Pro and there were no fees, I received the net amount I had made.
I believe as its personal cash its sent as “friends and family” or similar via the mass payment feature for PayPal business clients.
You can check out more info here.
Paypal / Neteller / Skrill withdrawals must be made from the same account from where the funds were sent initially. These transactions are processed free of charge and are instant once processed.
Being situated in Australia I maybe able to help with some information for those of you abroad…
Westpac Bank is part of the Big Four Banks in Australia and is regulated probably better than a lot of the EU or even British banking sector. Segregated Account or not… your deposited funds are an asset on the Brokers balance sheet…
The Banks and IC Markets are regulated by ASIC which I would not like to rely on to get funds returned from any of the Australian based Brokers… FX Trading is deemed as a high risk Investment strategy so you are pretty much on your own… ASIC would possibly only step in if the Broker went bankrupt… at which point it’s all over anyway…
Having said that… IC Markets Price Action has changed somewhat from the pre ESMA Rulings coming in to the EU, which has obviously increased IC Markets client base with all the disenchanted European traders moving accounts to the Australian Brokers.
Do your due diligence, I believe that El Toro has an interest in IC Markets Aust. Keep your eyes open…
They have been around for 10 years plus so let’s hope they won’t take your money and run
I have a question whilst i have this topic open.
I am far from expert and far from novice in forex. What i wonder is when they offer such high leverage, who is financing it?
Is it even getting sent to be placed on their liquidator banks or open a position against you. If later how do they still manage to lend you almost 100k on a $100 investment?
You won’t have the protection of funds that you have in the UK.
Do you really need more than 35 to 1 leverage. If so ask yourself why!!!