Well known brokers but Off Shore Regulatories, is it safe?

Broker Discussion Forex Brokers
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Hi everyone, hope you all are doing well,

I have a concern regarding to brokers that are regulated by multiple regulatories like CySEC, ASIC, FCA and more importantly Off Shore Regulatories.

so here is my questions, I would be more than happy if someone who has a deep insights could answer this about brokers and have worked with them for many years

basically top tier ( tier 1 ) regulatories like CySEC, FCA, ASIC and etc. has limited the leverage for 1:20 or like 1:30, Now I’m a scalper on a 1min / 2 min chart, and I risk 2% or 1% of my account ( I have an average of 20 points of stop loss on indices ) which requires a leverage of at least 1:50 in order to risk 2 or 1 percent of your account with a 15 or 20 points of stop loss on indices.

so let’s say you sign up with a broker like pepperstone, and it has different entities for different regulatories as you might have noticed.

and they say always register under a tier 1 regulatory so don’t run into issues with brokers.

I wanted to know what if I register with pepperstone but with their off shore entity which gives me more than 1:30 leverage, am I safe just because it’s " pepperstone " or no, no matter the broker, If I want to be safe I need to always register under one of the entities that are under CySEC, FCA, ASIC.???

see I live in turkey, but since I have many accounts in different brokers, I saw that I can actually manually transfer my account to the tier 1 regulatory entities. let’s say ( FCA ), although when I register, the default registration is they put me under the off shore regulatories.

is it safe to register with these well known brokers but under their off shore regulatory ???

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CySEC is not at all like ASIC or FCA.

From the broker perspective, CySEC is a low-regulation, low-customer-protection back door into being able to claim that you’re “EU regulated”.

In Europe, the best regulated countries are the UK and Switzerland. In the European Union, the “safe”/“good” countries are everywhere but Bulgaria, Cyprus and Malta.

Brokers choose where to be regulated. The reason so many choose Cyprus is to protect themselves, not their customers.

You should do so.

It’s a good plan to open an account with any FCA-regulated one and make sure that your account is FCA-regulated.

You don’t need to be British or to live in the UK, to be protected by that.

And you don’t need to be British or to live in the UK, to use the UK’s financial ombudsman service, if you ever need to.

There are many people in forums, including unfortunately in this one, who will tell you the exact opposite. These are not malicious people: they’re just ill-informed. All of them.

You can very quickly and easily verify what I’m telling you for yourself, by checking out the appropriate websites for yourself.

Spot forex brokers choose where to be regulated. Most regulators are fake ones, paid for by the subscription-fees of the brokers they pretend to regulate; they never rule against their paymasters in the event of arguments. Real regulators (FCA, ASIC, CFTC) are independent and funded by governments, were set up in response to public demand for customer protection, and can often help you if you need it.

The overall situation is bad, for customers. And made worse by people offering really harmful advice in forums on how to “trade overseas to avoid regulators”. This issue is one of the most widely misunderstood subject in forex-trading, and especially in this forum. It’s a shame, but the anti-regulation brigade will never learn the lessons of history, probably mostly because (although they don’t look at it in these terms and would never admit this) they’d actually prefer to “be right and be victims” than to make any concessions that would actually improve their lot and the position for future generations of customers.

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first of all, Thank you for putting time into reading my topic, and actually invested time and energy to write a response for me, I really appreciate your empathy / sympathy .

so what I understand from your explanations is that even having an account with a well known broker, you should always have your account under the sub entity of that broker which regulated by ASIC or FCA.

correct ?

which concludes that I need to move my account immediately to the ASIC or FCA regulated entity of my broker.

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4

Definitely! :slight_smile:

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affirmative, logging in to my brokerage account right now in order to move it. :pray: :running_man: :running_man: :running_man:

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6

Thank you, and God bless you.

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Guess what? just talked with live chat, and they told me you can’t open account under FCA or ASIC, just because you are in Turkey,

I told them : nope that’s not true, I have accounts with other brokers and my accounts are under FCA

basically they didn’t accept.

I’m gonna withdraw my funds.

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You are definitely right about that!! (As you know.)

What a nuisance. :thinking: :roll_eyes:

But the right thing to do, I’m sure. :+1:

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Hey, so my current broker didn’t accept as I said, I talked with 2 other brokers, they said the same thing

look at this!!!

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I don’t have any other solutions …

what do you think of this ?

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I think that where he said “regulations changed recently,” he’s maybe referring to their internal regulations, not to FCA regulations? I certainly know people who are neither British nor UK-resident who have FCA-regulated accounts, and both the FCA and Financial Ombudsman websites specify that you don’t need to be British or to live in the UK, to be protected by them.

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I see
Which brokers are they using ?

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This I don’t know, but I’ll find out and let you know (asking them probably by email, so it might take a day or two, sorry).

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Thank you, I would really appreciate it.

Looking for to hear from you. :pray:

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15

I wouldn’t go so far as to say it is “safe”. But I think they are safer than a broker solely regulated off-shore.

To my knowledge, these larger, multinational brokers set up offshore entities for the specific purpose of meeting the needs of traders outside of the regulatory authorities’ limitations or for those traders not allowed to trade with their main regulated entities. This is entirely different to a company setting up offshore simply to avoid regulations and responsibilities!

In addition, if such an offshore company were to be found guilty of fraud or other manipulation of traders’ funds then it would surely reflect badly on their core regulated entities and raise some eyebrows and questions in their regulatory authorities.

However, ultimately they are offshore and if they get into difficulties then you have no additional security other than the company’s overall reputation and goodwill.

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16

As @SovoS wrote, it is safer solution, the biggest value each company is…brand , logo, opinions about company, you need time and a lot of cash to build it. Good brokers with long history ( especially before market crash in 2015) wants to spread services not steel cash from their clients.

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17

Even i am extremely curious to know which broker allows a non UK resident to open an account under FCA regulation.

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18

Darwinex, I am from Poland

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19

This information is surely easily available from the FCA? They exist in order to serve the public and they certainly have a reputation for being approachable and cooperative. Have you asked them?

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Would be great to know which brokers under FCA accept people out of UK. I’ll register immediately.