Can A Broker Run Away With My $?

Broker Discussion Forex Brokers
1

Hi everyone,
I am new to forex and I was wondering if someone can clear up the situation for me regarding the relationship between Forex brokers and companies that manage funds in forex broker accounts? It was my understanding that while there is substantial risk in Forex trading itself (the account may lose value), there is NO risk of a company taking your money and dissapearing (because they are regulated by CFTC? or FDIC insured?) Now, after reading a lot of stories online about companies registered on some island in the pacific that took people’s money and disappeared, I am not sure anymore. Can someone explain how to stay safe?

Also, I was about to register with a company called GalleonFX which seemed reputable and experienced, but now their web site is down and I am not sure what to make of it?? They are a company that manage your funds for you investing in Forex. My main question is, if I did open an account with them, who would be holding my money? A broker who is licensed/bonded/FDIC insured(?) and cannot steal my money or that company itself (registered in Panama I believe).

Sorry for rambling, to summarize what I am trying to say: I would like to open an account which will be managed by an experienced professional or a group of professionals and I would like to be 100% sure that noone will steal this money (although I understand the account itself may lose value due to trading).

Thanks,
Mark.

2

Someone posted this “companies” website on the forum about a month ago. I said it’s probably a scam, their website is made on the standard opensource joomla template, any fool can make a website look ok with wysiwyg website builder.

I hope I am wrong :frowning:

3

Cryten, that exactly what I am trying to figure out. Could you please explain what “scam” would mean in this context? It is my understanding that the money sits in a reputable broker’s account and I give this company (Galleon) permission to manage the funds. Of course they could lose it for me but that would not be in their best interest since they get a % of the profit only.
If this is not correct or I am missing something, please correct me!

4

no im saying it just “looks” like a scam, if they manage money so well why couldn’t they pay some web design fees rather then use the joomla template which by the way is easily hacked for those in the know.