What if you are able to successfully trade up a forex account to say $50,000 and then you want to take the money out of the brokerage account, but can’t.
If, for whatever reason, the broker fails to send you the money you have requested from your account, in a timely fashion, then you’re sunk. You will have lost the money you put into the account AND you’ve lost any and all earnings. Unless your forex broker is regulated, you have no recourse. Even if they are regulated, the prospect of eventually getting your money out of the account is slim.
In the United States and in other countries the government has regulated forex brokers in an attempt to make sure they are solvent and responsive to customer requests to withdraw money from their accounts.
In the United States forex brokers are regulated by the Commodity Futures Trading Commission (CFTC). At this time there are only four CFTC authorized forex brokers. Some people believe that one of the reasons there as so few US regulated brokers is because of the cost of maintaining compliance. Many brokers are unwilling or unable to get and stay in compliance with the regulations governing US forex brokers.
As an American citizen living in the United States, you are free to legally open a forex brokerage account anywhere they will have you. Many non-US forex brokers do not accept US customers. I think the reason may be that some countries have agreements with the US to not let US citizens trade forex in their respective countries unless they meet CFTC requirements, although I’m not sure.
The bottom line for us Americans is that there are not many brokerage options for us, or so it seems. We’ve got four CFTC compliant US brokerages and perhaps an additional ten unregulated foreign forex brokers that will let us open accounts. Maybe that’s enough, I don’t know.
What’s your basis for this conclusion? The advantage of trading with a well-regulated broker is there are both financial and trading standards set, ongoing monitoring by the regulators to ensure compliance, a framework for handling complaints from customers, and the power to enforce actions against regulated brokers for violations.
Fair enough, I’m not speaking from experience. I should have at least some expectation that the regulation will actually work. Thank you for your response, much appreciated.
so , the way i see it there is only 1 solution
TEST YOUR BROKER
Now to do this you will need money
say you can start like this
if you open a Account with $1,000, double it then withdraw $1,000 and see how they react
then with that $1,000 bring it to $3,000 take out $2000 see how they react
then with that $1,000 bring it to $5,000 take everythign out and don’t say anything for a month or two, see how they react
then put in $2000 bring it to $10,000 do the same thing see how they react
test your brokers reactions to money over time
don’t just put in $1,000 get it to $100,000 and wonder why did that not pay me
Depends on the size of you earnings. Can be true if you made so much money that will make your broker bankrupt if they try to pay this from thier pocket. But this is highly unlikely since professional brokers trading on retail platform is rare case.
But making $50K for large enough offshore regulated broker like Hotforex or Tickmill is nothing, so they will certainly pay you.
I’d avoid playing with new in the industry brokers because you can ruin their business if earn too much.
If a broker really cares that you don’t make (much) money I don’t believe they will let you grow from 1k to 100k. IMO they will flag you much much sooner and prevent you from further profits with (unfortunately) nor forbidden actions like shitty pricing, manual or delayed execution etc. I also believe that no serious broker will care much if they have to send withdrawal of 100k to a client.
and that’s why i pull the amount out sooner,
the only real risk i have is in the beginning , but after that fist 2 grand… where i only risk losing 1,000
after that, there is no more loss
it’s just a question of testing the broker’s ethics
and …
You’re right
but who are the serious brokers, that’s the question, isn’t it ?
Hm you are sadly right there are hundreds of brokers fighting for retail trader’s money. I guess partly the answer is in the replay of FOREX.com above – well-regulated brokers. The other option is like you said – test small before you decide to invest further.
My idea is that the usual reason behind brokers failing to quickly make payments to clients is because they are not convinced its your money. Be prepared for lots of questions and providing lots of documentation in some cases.
Its the same story if you travel outwards across your country’s borders carrying a lot of cash. Customs will detain the money until you satisfy them it really is your money and that you don’t owe any income etc. tax on it: the burden of proof is on you, not them.
there are hundreds of brokers fighting for retail trader’s money. I guess partly the answer is in the replay of