Hey,
Just after some info on brokers operating from unregulated countries such as Seychelles, Dominica, Mauritius,Panama,British Virgin Islands, etc… Not sure if i should call them unregulated?
I trade with brokers in Australia at the moment and they are fine so far. The broker has an Australian financial license and keeps funds in a trust account. Hope my cash is safe with them…
But putting money into a trading account in Seychelles, etc, as i see it is just too big a risk. I doubt there is any legal action that i could take or afford to take if the money was never refunded?
Do people really transfer money to these brokers in these countries? How do you know it is safe? Is there any type of guarantee in these countries?
Are unregulated brokers just for play money? Would you transfer a $million dollars to their brokers?
I guess money is not safe anywhere and as it comes up with investing it we need to do a lot of research and risk management before investing it. I believe that there are many examples in past where regulated brokers also turned into scam taking traders money with them. So i guess we need to trade with those brokers who have some repute and keep withdrawing the profits regularly from them to keep a check on their processes. I also use more than one broker for the sake of diversity in portfolio and only keep necessary capital with them, the rest i usually withdraw to keep on safe side.
It’s a question I asked myself many times when I went offshore. As a US citizen, I can’t trade freely with a regulated broker in the US, and I can’t trade with a regulated broker outside the US, so I found going offshore (unregulated) actually proved beneficial to my trading. My current broker (lqdfx) follows all of the rules a regulated broker should follow and they have segregated client funds, so I see it being no more of a risk than being with a regulated broker.
yeah, if you are in the US, you have to set up a trading company/trust or something to trade. They dont make it easy for you!
lqdfx dont even tell you which bank your funds are held in! Just a “European bank” . Not feeling the trust… Dont think I would transfer anything to them i didn’t expect to lose.
Dont think I would transfer anything to them i didn’t expect to lose.