Would you trade with brokers that have been fined by forex regulation agencies around the world?
i.e. : FXCM is one that got fined for price slippages malpractice.
Would you still trade with them (or with any other brokers that got fined for fraudulent practices)? I am currently trading with Alpari UK, I wasn’t really worried on the charges laid against Alpari TBH but what are your opinions?
If a broker got fined for cheating or tricking its traders, I would have nothing to do with them now and in the future. As for the Alpari’s case, I think they did the right thing. If traders take advantage of their system malfunction, you can only consider that as stealing. How would you feel if someone enters into your home ans steal money because you left your door open? Yes, this is exactly the case. Alpari were right to cancel those accounts and NFA was wrong to fine them. Is NFA encouraging these type of stealing acts?
It depends on which kind of fine and how did they get fine? We are human, we aren’t perfect. God also has weakness or mistake so sometimes we can do some mistakes. But I don’t think one good broker could make one kind of mistake for 2 times. I will take a look at their working history and other reviews about that broker.
Actually I’m trading with Hotforex and I have never heard any complicated case about this broker.
i guess its a case to case basis, somebrokers might have overlooked some regulations which can be acceptable, but to be caught cheating and being fined for it thats a totally different storry, its hard to trust that broker IMHO
Mistakes, deliberate or not happen in any industry. You should only steer clear from those brokers that you suspect haven’t learned their lesson. There are cases where brokerages change names of their businesses( website names usually) in order to bury %&$$# done in past, instead of changing their way of doing business
If I recall correctly, the NFA ruling applied only to US client accounts ? Is that correct ?
Where clients in other countries victims of these practices, and if so does FXCM intend to compensate ?
The slippage statistics in your other thread are meaningless marketing junk. A pip of positive slippage on a micro account does not equal a pip of negative slippage for someone trading 50 lots, whilst plus one + minus one equals zero, might be a convenient marketing argument, unless you publish actual dollar amounts that FXCM either gains or loses due to slippage, you are attempting to pull the wool over your customers, and potential customers eyes.
I would suggest that if you had nothing to hide, you’d publish actual dollar amounts.
The NFA is a US regulator so this concerned FXCM US. It’s important to keep in mind that each jurisdiction in which we operate has its own governing body. FXCM abides by the policies the local governing bodies set for us in each of the countries where we are regulated including the US, the UK, Japan, Australia and Hong Kong. We enhanced our No Dealing Desk (NDD) forex execution in 2010, so that now all FXCM clients worldwide can receive price improvements on limit orders.
You make a good point that a pip can vary in value, which would ultimately impact the dollar value of the positive or negative slippage. Whether a pip is worth $1 or worth $500 is a reflection of the trader’s own risk management, since traders are free to choose their own trading size. So of course pip value will make a difference in the dollar amount made or lost, but this is a factor of the trader’s choice rather than the market liquidity. What matters in terms of trading execution is that our platform does not treat positive and negative slippage differently, which you can see from the stats below.
It’s worth noting that as one of the only retail forex brokers that is a publicly-traded company (NYSE ticker: FXCM), in addition to this information, we also publish details regarding our finances that are not readily available from smaller brokers that are privately-held companies. This provides further peace of mind the traders who have entrusted $1.190 billion in client funds with us as of the latest published data.
The alpari case is different. They were fined for no reasons, even when they did the right thing. This was truly a lack of judgement on the NSA side. However, a broker that is guilty and fined is not worth trading, cus they’ll always look for new ways to play tricks on traders.
IMHO