I just saw a post that provoked me this morning claiming that all Brokers all equal. For the newbies who are yet to find a good broker, please know this: All brokers are not the same. Although, brokers use MT4 platform, but this does not mean that they execute trades in the same manner. Some are slow to execute trades, while others are very fast. When it comes to spreads, some have higher spreads and others have lowers spreads. What about leverage? Not the same as well.
As a newbie, a broker with slow and poor order execution will do you no good. I would also advice newbies to stay away from market markers with DD execution until you have enough experience to deal with such brokers.
Lastly, if I am told that there is no big difference between a regulated broker and an unregulated/offshore broker, I would not dispute this. I am also aware that offshore and unregulated brokers treat clients better. The only benefit of choosing regulation is money safety, which have no bearing on your trades whatsoever. So, choose wisely!!!
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[li]Beware brokers that offer a “bonus” on your first deposit. No reputable broker I know of offers this.
[/li][li]Regulation is key, IMHO, but it is not a failsafe. A broker I was trying out was regulated and then went other, with my deposit left in limbo.
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Always test with a demo account first, then start with small deposits. After 6 months try to withdraw all your money and see how that process works out for you. Never deposit more than what you are willing to lose, just to be sure. Safe trading.
All brokers are worth testing. People only feel that regulated brokers should be tested. But if one should really find a reliable offshore broker, then am sure that he will enjoy his trade.
Not all brokers use mt4, which is susceptible to broker manipulation. I prefer cTrader, which is a much nicer platform, and is not susceptible to any broker intervention. Also, not all bad brokers offer a bonus, a few reputable ones do also such as Dukascopy (although I don’t recommend them for their super high fees).
All brokers are not same in their dealings or offers. it is a matter of your satisfaction and Online transaction that keep you in touch with them . Their repute and trusted trading platform is a way that make them a goood broker where clients find all their needs of trading.
You are all correct. So, in the end, you all agree with me that all brokers are not the same. Some good and others bad. Some greed and others kind. Some manipulative and others transparent. Choose wisely folks!!
I agree. You need to test a broker and regulation does not guarantee anything. FXCM was fined over $6 million for cheating their traders and does anyone remember MF Global and PFG Best? It can happened not matter what. In addition it all depends on the regulator as well. US regulation is terrible and chokes off traders while smaller island nations may nor provide any protection at all. Test your broker and do your due diligence. Those who seek 100% security should make a deposit in their mattress!
For everyone’s clarification, the NFA action you’re referring from back in 2011 was for positive slippage not being passed along on orders prior to 2010. That year, FXCM completed upgrades to our platform to allow orders to receive positive slippage when a better price is available. As you can see from the stats below, our clients now receive positive slippage (AKA price improvements) just as frequently as negative slippage even while some brokers may still not give positive slippage to this day.
Does your broker ever give you positive slippage on your orders? That’s easy to check. Simply record your limit order price and check to see if you can get filled at a better price. If your broker re-quotes you, do you ever get re-quoted for a better price if the market moves against you? How many times have you ever experienced a re-quote in your favor for a better price or received positive slippage on a limit?
Unfortunately for traders that get re-quotes elsewhere, their broker is often happy to fill them at the price they requested when the market is moving against them, but re-quotes them with a worse price when the market moves in their favor. At FXCM, traders get no re-quotes and benefit from positive slippage. In addition, our Trading Station platform has a feature called Market Range to help you limit negative slippage while style enjoying the full benefits of positive slippage.
Should traders do their own due diligence when choosing a broker above and beyond checking whether a broker is regulated? Absolutely, but making sure a broker is answerable to some government authority by being regulated is a bare minimum when it comes to the safety of your funds.
If a broker is unregulated, it means they are unable or unwilling (which is worse?!) to meet even these minimum standards of financial responsibility and transparency. Below are just some recent examples:
[B]Crown Forex[/B]
“Although some people with accounts were still able to get their money out at this early stage, many accounts were not refunded… [I]the company had no authorization from the SFBC for any activity in the financial sector in Switzerland.[/I]”
Unfortunately, that wasn’t the end of the story. A couple of years after going bankrupt, the people from Crown Forex were at it again, this time helping others become unregulated brokers.
[B]JadeFX[/B]
“fraudulently solicited and misappropriated more than $3.2 million from more than 500 customers in the United States and throughout the world to trade forex… [I]None of the defendants has ever been registered with the CFTC.[/I]”
At FXCM, our goal is to provide superior trade execution, customer support and be a safe place for you to keep your money. That is why we are regulated in major financial centers in the US, Europe, Asia and Australia. In addition, we are one of the only retail brokers that is also a publicly-traded company (NYSE ticker: FXCM). That is why traders have entrusted us with $1.264 billion in client funds.
You can list some examples of course, just as I listed MF Global and PFG Best where regulation failed. Looking back at the FXCM case, you guys tried to cheat traders by not passing on positive slippage which is why there was a fine- FXCM would have never passed on the positive slippage if not caught and if you state otherwise you just make yourself lose the credibility you may or may not have in this forum.
I am neither discouraging people nor encouraging people to trade at any broker, that is a personal choice everyone needs to make. My point is that regulation is not the holy grail when it comes to security of funds.
Every business is inherently dishonest if not for regulation. What FXCM got caught for is what everyone else was doing. Till now so many crappy brokers do the same thing. Regulation does keep brokers on their toes, and FXCM is definitely more careful now. So overall I would say they are amongst the safest brokers out there, although I don’t use them because I prefer true ECNs.
What you fail to realize is this. Regulation is equal to license. What makes a broker regulated is the license it has. Do you know that brokers buy license voluntarily? Yes, of course. Do you think FXCM paid its fine after being caught in the act of cheating? This is laughable because FXCM can choose to be regulated or not to be regulated. So they can choose to pay the fine or not and nothing will be done to them because it is all a Farce. Regulation is not an active word in this business. So, my friend, do not feel you are safe with these brokers. Forex is risky and regulation has not helped to reduce that in any way.
It is unfortunate that you giving us examples of brokers who have cheated. I am also sure they’ll give reasons for filure just as you are defending yourselves right now. Finally, when it comes to brokers being fined, FXCM comes top spot on goole search. I beleive in actions and not words.
I thought about this, but questions are still unanswered. How actually is the Government involved in this regulation. Is the regulatory bodies set of by the Government, Or did they spring up from private cooperation. Or are we being led to believe that regulation is actually real when it is not. Can someone explain to me how the origin of regulation and how it operates?
