What is the advantage of trading with a regulated broker?
Originally posted by 4nt5
Originally posted by dianayes
It's a big advantage that we trade in a regulated broker because we have an assurance that our money will not be wasted and scammed.And it's advantage that money are segragated.
Why is it an advantage that money is segregated? and whose money?
clients fund are segregated.
There are some key aspects like regulation and capitalization that speak of the reliability and competence of the organization and can be determined by applying certain objective criteria.
Another advantage is aside from segregated funds, it shows a broker has gone through the effort of complying with rules and regulations to gain a customer's trust.
We feel secured when we know that we are dealing with a registered/legit firm.
Originally posted by gracebWe feel secured when we know that we are dealing with a registered/legit firm.
Yah that's right no fear to feel when we know that we deal with registered firm.
That is not accurate, there is LESS risk of a regulated broker scamming traders but the risk still remains as proven by MetaQuotes (http://bit.ly/1bzKtwf)
Though it has been counter claimed that MetaQuotes were telling porkies for their own interests a day later.
Just want to share Regulated Forex brokers are forced to keep the transactions transparent with documented financial reports as they must submit those reports to regulatory authorities. And when they fail to do it, authorities have the right to fine them or terminate their membership. A regulated Forex broker allows the resolution of any dispute increasing the investor protection.
Just want to add that though its not set out in writing, most regulated brokers work to a certain standard level because they are regulated they want to impress, whereas unregulated ones mainly are simply after the money without the quality service i.e. when you want to make a withdrawal they might make up all sorts of excuses to delay the transaction
Originally posted by rrayne20009
Originally posted by Champ
Originally posted by rrayne20009
Hey guys!Just want to ask what are the benifits a trader gets from a regulated broker.
Answer to benifits of trading with regular broker is already given.
There is one more thing I want to add which is to further evaluate regulation. Regulation with some Top regulatory authorities like CSEC, FSA, FIRA, SEC (USA) and ASIC etc provide much higher safety level
I know ASIC is for Australia,what about FSA?
FSA is for United Kingdom. Stands for Financial Service Authority.
it was called the FSA but it changed their name last year to FCA Financial Conduct Authority