Look. At the end of the day it’s all free will and choice. But it upsets me when somebody comes along and with conviction states that there’s nothing wrong with unregulated brokers. It’s misleading especially in the context of a site such as this. I suppose there’s probably more than one unregulated broker out there that’s alright. But they will be the exception rather than the rule. And after how long and after how much money lost will a new trader find out that they’re being duped if they’ve not been fortunate enough to have just been lucky enough to find that one unregulated broker that isn’t taking them for a ride. This business is difficult enough as it is so it seems to me that before even placing a first trade that you’d want to try as far as possible to stack the odds in your favor. I mean to say: why would you go LOOKING for possible trouble before you even start out. Makes no sense to me whatsoever. And it’s not me having a holier than thou attitude. I’ve BEEN there. Took me a long while to find out that I was being toyed with by my first Belize bucket shop. Not saying things would have been different back then i.e. would still have lost big money for sure. But I don’t think it would have happened as quickly as it did. I distinctly remember sitting of some hugely profitable trades now and then but not being able to close them out until they had turned into big losses. And the infamous platform disconnects. But I didn’t know what was going on. And of course you start questioning yourself not the broker. And even when you start questioning the broker: they are so good at what they do that a new trader will end up thanking them for helping them understand what they were doing wrong meanwhile back at the ranch…
And my own personal opinions aside just think of the logic here for a minute. If you’ve chosen to open a brokerage and everything is above board and legit then why on earth would you just not go through the required procedures to be regulated. If nothing else it’s a feather in your cap and would for sure make it easier to solicit clients. And the old argument is that it’s much cheaper to conduct business in these exotic foreign places. I don’t buy into that. It may be true in that it’s cheaper to conduct business in these places. But if you, as a brokerage, are having to worry about costs well then there’s something wrong to start with. Then a whole bunch of other things must be called into question e.g. capitalization and financial stability are two just to begin with.
And of course there’s all the partnership offerings etc. These things have been specifically outlawed and no regulated broker is allowed to offer them unless to regulated and qualified business entities and individuals. The reason: this stuff has been a God send to scammers generally especially the likes of signal providers and mentors and whoever and whatever else. Send out signals or give advice but doesn’t matter if you know what you’re doing or not because you still get paid commission from the broker and even worse if you’re getting paid on the spread i.e. just get your clients to place as many trades as possible. Nah. There are far too many good reasons for regulation than there are bad reasons.
Anyway. Who knows what Mr. Attitude’s real story is. But anybody that’s been around in this business since 1995 would not be asking questions like this nor making such statements. So that kind of narrows the issue down a bit I’d say.
Oh alright. I see. It was you to whom he was responding i.e. you brought up FXBREW on the CFTC thread and he was replying to you. So maybe you’re right about him. If so: I apologize. I do, however, stand by everything I’ve said about regulation vs. no regulation.
So I ask you then: what are you going to do if an outfit like FXBREW (now just using them as an example and nothing else) goes out of business or for some or the other reason will not allow you to withdraw your funds or compromises your trades or just decides one day to close down. What are you going to do. I’m not being funny here i.e. I’m really keen to know what the solution would be.
Notwithstanding any answer to the above though:
Do you really believe that the above statement is a prudent statement to be making on a site such as this.
And even if there’s even the slightest bit of substance to that statement: pray tell why an unregulated broker is better than a regulated broker. Just read that sentence (and this only occurred to me while I was typing the sentence). Just read how absolutely ridiculous that even sounds.
Fact of the matter is this:
There is only ONE thing that makes an unregulated broker preferable to a regulated broker and that is leverage. And the only reason one needs leverage is if you are under capitalized. And if you’re under capitalized you shouldn’t be trading in the first place. The only exception here are seasoned and profitable traders that will not hang themselves due to excessive amounts of leverage being available to them. And that accounts for probably 1% of the forum members of this site.
It’s called asset allocation. I have four other accounts. And, yes I’m looking for low spreads and larger margins. What investor wouldn’t want that. Once again you make an ass of yourself assuming things little man.
P.S. - This will be my last response. I actually have a life.
Because I had being losing money at regulated US brokers and I have been winning big at offshare brokers.
For the simple reason that spread at regulated brokers is 5 times that of offshare brokers.
Well. After last night’s friendly little discussion I’m opting out of giving input on brokers I’ll tell you that. I mean I just cannot believe the naivety that prevails (and believe me I’m being real nice by using the word “naivety”). Last night I spent some time reading through some posts on Clint’s CFTC thread. This character from Florida asks Mr. @wmwmw there if there are any withdrawal issues with FXBREW to which Mr. @wmwmw replies not that he knows of. Then I find that some months back Mr. @wmwmw has posted no less than two links to rating sites on which BOTH state very clearly that in their opinion FXBREW is a scam (and with concrete reasons for saying so). Then I look further on the Internet and I find complaints about people having tried to withdraw money and the same has not been forthcoming for weeks. But of course what’s the outcome: those rating sites are promoting regulated brokers so they are biased and the reviews and ratings are not to be believed. Then of course the elephant in the room is that my new friend there is trading with Coinexx who sure do seem to have their share of technical problems almost on a daily basis. And not to mention we’re talking about people funding trading accounts in ■■■■■■■ Bitcoin and the like. It’s an absolute joke. There is ■■■■ in some shape or form with Crypto. just about every other day for crying out aloud. Are these people deaf, dumb, and blind or what. And at the end of the day you know what the logic is??? Well: it’s not going to happen to me!!! Well good ■■■■■■■ luck with that one.
Nah. Total and utter waste of time and energy. With all this technology: people are getting dumber not smarter. Probably because they don’t want to nor need to think for themselves. And seems to me also that the biggest issue people have with regulation is the fact that somebody like the CFTC has decided to put the brakes on and most are seeing this as an infringement to their rights. And here we go. Better to stand up for your rights and lose money to some scam artist. It’s ridiculous. But it’s also indicative of the world we live in today too let’s face it.
But at the end of the day: it’s not my (our) money. So let 'em carry on.
LOL!!!
Absolute best part about it: you’d be hard pressed to find anybody that would deposit money into a bank that’s not covered by the FDIC.
dpaterso
you are a joke.
You have nothing valuable to contribute but only personal attacks.
Your posts showed that you know little about trading , you are not interested in trading, are not concerned on anything that traders are concerned.Certainly you are not a trader, but a paid poster.
Only thing you are interested is to make personal attacks.
What can I say. You got me. The CFTC pays well. Get a commission from the FCA and MiFID as well. Also the ESMA. Those regulators in Donkey Sh1t City, Republica de Las Paranoias don’t wanna pay me though. Go figure.
I have done very deep search in google in order to find you a solution really for all that matter anyway. You can find a ton low spreads but do not serving US clients anyway, let’s see something like Forex Brokers with Low Spreads — Brokers for Lowest Spread Trading
I’m really not interested in all the name-calling and arguing on this thread so please just answer my questions if that’s possible. Thanks…
I’m in the US. I’m willing to use a broker who doesn’t require verification (KYC) such as drivers license, etc if anyone knows of a broker that fits my criteria below. Of course I’m also willing to provide verification to a broker who will accept US customers.
I’m looking for a very low or no spread ECN broker. I’m willing to pay commission based on lots traded. I need this type of broker to run a scalping EA that only takes 4-8 pips profit per trade. I have tried Coinexx where I usually find good spreads but during the time I want to trade GU (late night GMT during asian session) the spreads jump up to 5+ which makes it impossible to run my EA. I’ve also tried turnkeyforex and their spreads are a bit worse than coinexx. I’m currently testing spreads on paxforex on a demo account but it doesn’t look like they will be any better than the other two.
I understand the broker may be a scam, unreliable, may take my money, may shut down, etc. But I’m not going to put a lot of money with them - just a reasonable amount - say $1000.If they shut down and take my $1000 I’ll survive it.
Anyway does anyone know of such a broker with very very low (max 2 pip any time of day) spreads on GBPUSD who either accepts US clients or doesn’t require verification to sign up?
So on a very serious note… I would love to trade with a highly regulated broker who INSURES my money. Not sure if you guys are in US or not, but that option is not available. I have been trading offshore for 5+ years, I use 2 different brokers, I’m sure you can figure out which ones by my time offshore.
I am not offshore for high leverage, no FIFO or hedging, I am offshore for exactly the reason you say we shouldn’t be…CAPITAL PRESERVATION.
As I stated above, there is nothing in NFA/CFTC regulations which insures my money, of course not offshore either. So i choose to keep 70-80% of my trading capital in my FDIC insured bank, if something happens I am still in business with a majority of my capital intact. I trade with US regulations, I have to put up 10 times more what I deem unnecessary margin to execute the same trade. So with all my money sitting at gain, oanda, IG, whatever, they go bankrupt…SO DO I.
Once again, if that money was insured, earning interest, I have no issue parking it there. Matter of fact, if these regulations are intended to “protect” us, why not require these funds be insured? Or better yet, let me trade with a regulated broker in another country who does protect my money.
The reason is simple the regulators have THEIR OWN BEST INTERESTS in mind, not mine.
On a side note, I have never had a random price spike (not seen on another broker at same time), frozen platform, price delay or any withdrawal issue…EVER. My commission is lower, my spreads are tighter.
Do a google search on the US regulated brokers, see how often these things happen with the “regulated” brokers.
THE NFA/CFTC is regulating the trader not the brokers.
Once again, this is not intended to start an argument. Just sharing my thoughts on why I prefer to be offshore. I do not want to be…I am forced to be
I believe Trader’s way is not accepting US clients anymore. and FXbrew shut down. So we are left with Turnkey Forex, Coinexx, and LMFX. There are few more brokers like AAFX, but they are comparatively new, hence my trust factor is low with them right now.
I have been a loyal customer of Coinexx (and they have done nothing to lose my trust) but I feel I should diversify my funds and planning to try Turnkey Forex now. Will keep everyone updated with their trading conditions.
