I am really wondering whether regulation has any value? Some absolutely horrible brokers are regulated. I understand that being regulated in Cyprus or some other Island isn’t the best. However, Plus500, one of the worst and most deceitful brokers out there is ASIC regulated (Australia). That really shakes my confidence in Forex brokers in general. I was seriously thinking about opening an account with IC Markets (also ASIC), and now I’m not sure if there is any point in even looking at the regulating body. Should I just base my opinion on customer reviews?
I would ignore reviews as you never know who posted the review and why. The best I can tell you is to do your own due diligence. There are several great brokers out there, finding them would be up to you. Don’t give up on sound brokers, but you are right that regulation is not the holy grail. Just look at some of the US regulated bucket-shops that went belly up.
The ASIC is often viewed as a decent place as far as regulation is concerned, but in the end you need to make a decision. Try it out with a small amount and see how it goes. Should the broker call you, beg for more deposits or give you issues with a withdrawal then stay away.
I couldn’t agree more. Just take it day by day and try things out. That’s probably the best option given your situation. 
You’ll find crooks everywhere. That’s real life, sadly.
What you can do is mitigate your risk by depositing the minimum margin for your trading. So if you have $10k to trade with, deposit perhaps $1k with your broker and keep the rest stashed in a proper bank account or term deposit or whatever. Top up or withdraw from your broker as necessary. If they ever run away with your money, it’s not the end of the world.
Well I’m now with another ASIC broker that I love (IC Markets). I love the idea of using high leverage and keeping little money with the broker. It seemed so wrong at first, but its so much better for protection of capital if the broker goes belly up. You just have to be disciplined and not use more than the leverage you want.
^ I’m with IC Markets too. Good luck! 
Seeking an incident free broker is similar to owning a franchise and expecting some stock items to never go missing. Face it broker errors will always cost you somehow. The solution is to focus on your business and improve your productivity rather than focusing on broker flaws. Afterall walmart never went broker due to a missing can of tuna…LOL. You aren’t gonna go broke due to a missing $10.
On the other hand it always helps to conduct your business with regulated firms. When or if they go bellyup, you will get a fraction of your money after some few years
I agree, but Plus500 is way worse than you make it sound, its not about being incident free. It is particularly predatory in Asia, Africa, the Middle East, and South America. One of their worst tricks is that they open an account without any questions asked and take your money. Then when you ask for a withdrawal they will start the whole AML process and will always refuse to accept your documents and stop answering you and close your account. Also their platform is not just bad by accident, its designed that way. Most people who use plus500 are beginners. They send in a small amount, and never ever see it again, but they are in a different country so they don’t bother filing a complaint with ASIC (which they don’t even know about most probably).
I have witnessed how they lie to their customers. By not defining exactly what they mean by scalping, they are able to close the account of someone who’s shortest trade was open for 7 minutes. Then when challenged on it, they quote European law about scalping being illegal. But the deceitful liars are actually quoting laws against scalping of tickets (concerts, sports, etc…) not Forex scalping, which is entirely legal under the law.
These are not mere ‘incidents’. This is by all means a systematic policy to make money in the most devious ways. They give bucketshops a bad name.
I thought regulated brokers are suppose to be the safest out there. How come I read so many complains here and there. If they are not so honest or secure enough, then what advantage do they have over the unregulated brokers.
ASIC is an excellent regulator but they are crazy at the moment trying to move international clients to offshore licenses in BVI and Cayman’s.
Like somebody mentioned before. You will get good and bad brokers everywhere. Even with quality regulators like ASIC, FCA or NFA.
Look at it this way:
Exness, HotForex, Plus500 are all multiple license (ASIC, FCA) but are sh1t brokers!
Pepperstone and AxiTrader are all quality Australian brokers and hold multiple licenses too (ASIC & FCA).
Stick to the brands who show they are fair and ethical.
The Law is meant for all to follow but you can always break it. Just dont get caught.
btw JonTrades, AxiTrader gonna lose the ASIC license & become another white label of Axicorp by end of this week. Time to hope to Pepperstone.
I know it! Even, I have such a bad experience with this broker!