We understand that the new Forex traders are very excited about their new business but they must remember to beware of the unlicensed brokers as they can cause the biggest harm by giving wrong advice. Comparatively, the licensed broker is well trained and can guide you in a better way.
Your broker should not be advising you at all.
The “biggest harm” from unregulated brokers is that they bugger off with your money, simple as that
True, true.
I think Every broker is now having legal registration with some legal authority or world or their own country. So there are few lefts who are not. And we can easily identified them.
is fxpro good and regulated ?
There’s Registration, and there’s "Registration"
If registered with a strong regulatory body you will have some degree of compensation in the event of loss of funds through no fault of your own.
If the regulatory body is based in some exotic location, then you can kiss your money goodbye if your broker scams you or goes bust.
Excuse me but you`re not 100% right.
From what I have researched and experienced, there is a lot to be said about both, 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.
That`s in short.
They certainly do, and one of those ways is by keeping clients money.
The regulated brokers who offer lower leverage are doing so because that’s the law in the countries they operate in, nothing to do with recovering the cost of getting regulated.
Anyhow, each to their own.
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If a broker is regulated with your country then you can trust or not? Or still you are wondering that he will scam or not?
Depends on which country you are talking about. You tell us and we’ll tell you. Broker’s name would also help.
Trading with an unregulated Forex broker is costly; only regulated brokers are able to make sure good trading environment.
At the end of the day, what’s important to me is whether or not I’m able to withdraw profits. If I make 10-20 pips per trade it doesn’t really matter to me if my spreads at 1 pip or 0.6 or what. I’d rather sacrifice the small spread difference than be unsure whether I’ll be able to withdraw my profits.
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Yes, indeed while keeping the major scam activities of many non regulated brokers, everyone will suggest not to work with non verified broker. At least a forex trader should give due attention on choosing reliable, regulated and experienced broker that will provide complete capital security and reliable services.
To enjoy the best of both worlds you just need to find an unregulated broker that you can trust. They do exist…
Exactly. And remember that JP markets and Pepperstone in example also was regulated but what happened.