Brokers fees and commissions

[maya95]

HI Amy.
What factors did you consider when choosing your broker?

[steve369]

It would be a big deal if the unregulated broker decided to help themselves to your account, which is a risk not worth taking.

I can assure you many regulated brokers offer minimal charges and fees - and keep your account money separated from theirs in a bank.

[SwingTrendTrader]

No, for me its safety of funds.

[Emi.s]

Your life your choice Maya! I have friends who work with unregulated brokers for years but I don’t have a good experience with them.

[maya95]

I absolutely agree with what you say and understand it.
However, after doing some research, I found that unregulated brokers offer larger leverage and bonuses, er, promotions, and that if they wanted to be regulated, they might face some restrictions in specific circumstances.

[maya95]

So, What are your main criteria for ensuring that a broker can handle your money?

[maya95]

May I ask what dissatisfied you with the unregulated broker?

[SwingTrendTrader]

I have to be a citizen of the country and they have to have an insurance policy, for me thats usa and td ameritrade.

[flamingoproxy]

@maya95

the very first step is to consider the typical fees and commissions associated with their services.
do you think the same guys?

no, absolutely not!!

i think doing that is a very widespread and very misguided approach indeed, and the fact that it’s so widespread is a major contributor to the industry’s problems and reputation, and to trader failures, too

so i agree firmly with all the replies you’ve had above

i hope the three posts linked to below, and a careful reading of the threads they’re in, will also help you to completely reappraise this issue!

Recommending Broker

three things really matter: regulation, regulation and regulation! what’s most relevant, and most important, is avoiding disasters, and you will always give yourself the best chance of avoiding disasters by using a broker regulated by the FCA or ASIC everything else is secondary (and a distant second) to that Oanda, but it doesn’t matter which one i recommend, or which one anyone else does - different people prefer different ones, for different reasons, and have different experiences with t…

Which broker is better?

because counterparty market-making forex “brokers” offering high leverage are not reliably regulated, simply because the UK, European, Australian and American regulators (for very good reasons) don’t allow such “brokers” to offer high leverage it’s really very, very simple: if you see a “broker” offering high leverage then you already know that they are not regulated by a proper regulator, and therefore not trustworthy - because the two things are, by definition, mutually exclusive be aware t…

The bonus of the broker is good or bad?

they’re almost universally bad most new traders will never manage to complete the number of lots traded to claim all the ‘bonus’ without blowing their accounts, and even those that do manage will have likely paid several times the ‘bonus’ in brokers fees/spreads ethical, real brokers don’t use gimmicks of this kind, and don’t need to the ones making such offers are counterparty market-makers relying on attracting a particular type of customer whose inexperience they know will make such offers…

i hope that a careful reading of those three threads will change your mind about what you said above …

@maya95

I found that unregulated brokers offer larger leverage and bonuses, er, promotions

that’s definitely right, and it’s part of the reason why high leverage, bonuses and promotions are three big read flags warning you to AVOID such brokerages, because the reasons they have chosen to be unregulated (or lightly regulated, which is often the same thing, from the customers’ perspectives) are reasons that are good for them, not good for you

[maya95]

I got you.
to me as i said is the fees, I don’t want to pay too much.

[maya95]

what is wrong with me (haha) what i say is the wrong way.
also i really appreciate your mentioned links.
I will check them

[Emi.s]

The experience I had. I started with $500 and ended up with $1.51

[maya95]

Was it your broker, or were your trades losing money?
how could you say that it was about the broker?

[Emi.s]

It was both of them, I didn’t exactly blame it on my broker, just said I had a bad experience and I’d rather not roll the dice with them again. Lesson learned.

[ontario]

There are lots of risk associated with trading with unregulated broker. Platform manipulation, risk of blocking profits, unfair market-making (trading against you) etc. Regulated brokers usually don’t possess these drawbacks

[SmallPaul]

@ontario

There are lots of risk associated with trading with unregulated broker. Platform manipulation, risk of blocking profits, unfair market-making (trading against you) etc. Regulated brokers usually don’t possess these drawbacks

There is absolutely no truth to that, regulated US forex brokers play all the games you mention and have been fined for doing so.

In the US, there have also been a number of cases of regulated brokers stealing funds from their customers

FXCM and CEO Drew Niv kicked out of US Forex market, fined $7 million for defrauding customers

In a fairly harsh and historic move, the US Commodity Futures Trading Commission (CFTC) has banned FXCM Inc (NASDAQ:FXCM) from its home US market, as well as a permanent registration ban for CEO Drew Niv (pictured above).

https://www.leaprate.com/news/fxcm-and-ceo-drew-niv-kicked-out-us-market-fined-7-million-for-defrauding-customers/

Gain Capital fined $700K by NFA for compliance violations

The NFA alleges that Gain Capital improperly adjusted customer accounts following a system malfunction on the Forex.com trading platform, which took place from about 2:55 pm on 31 March 2021 to about 1:00 am on 1 April 2021. During this time, customers on the platform could execute stop and limit orders in 14 currency pairs at prices, which did not correspond to the current published price.

https://www.leaprate.com/financial-services/fines/gain-capital-fined-700k-by-nfa-for-compliance-violations/

[maya95]

Yeah I understand you it is hard to trust again thanks Emi for sharing that.

[maya95]

If a situation arises where the broker encounters issues and your funds are at risk,will it be challenging to track and legally recover your money?

[maya95]

I believe the same thing, and I know certain regulated brokers who steal money.
I suppose there is no sure way to trust.

[Emi.s]

Thank YOU, and I hope you never have to deal with something like that because it’s seriously terrible.