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How to choose a broker safely

  • Post #1
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  • First Post: Oct 25, 2013 3:24pm Oct 25, 2013 3:24pm
I'm newbie sorry for my english .
My capital grow up every day , too much Regulator . (~2 year profit)
FSC http://fscl.org.nz/ Hotforex
FCA http://www.fscmauritius.org/ Roboforex http://www.bvifsc.vg/ Forex4you
Cysec http://www.cysec.gov.cy/default_en.aspx Exness

I fear someday lose all my money . I need a best Regulator when broker scams, I can get a refund from the Regulator (not profit just my capital) . I seem domain have ".gov" better than other. Can you help me ?
Internet is sharing
For Forex, I think FXCM is the best

or

Interactive brokers

I personally use Tradestation for futures
  • Post #3
  • Quote
  • Edited Oct 29, 2013 3:03am Oct 28, 2013 2:16pm | Edited Oct 29, 2013 3:03am
Regualtion is not a guarantee especially if you are not local customer of the company. Just withdraw profit in time. And I bet that nothing will happen with many brokers: Alpari, FXPro, FXCM, IG, SAXO and many others. I am quite sure that you will fall sooner than these companies...
Quoting bmw335isedan
For Forex, I think FXCM is the best or Interactive brokers I personally use Tradestation for futures

So much Spread . For NDD Account 2.7 pip Spread EU . Other broker only from 0.6 pip EU .

Quoting Max FX
Regualtion is not a garantee especially if you are not local customer of the company. Just withdraw profit in time. And I bet that nothing will happen with many brokers: Alpari, FXPro, FXCM, IG, SAXO and many others. I am quite sure that you will fall sonner than these companies...
What mean garantee ,sonner ?
Floating leverage (Alpari) that mean it can automatic change from 1:500 to 1:10 ???? So High risk .
Internet is sharing
I think your list is ok, if they can't take your money and leave you. Other brokers can do it. Nothing guarantee they won't leave you.
Quoting johnpratt261
Floating leverage (Alpari) that mean it can automatic change from 1:500 to 1:10 ????
Hi johnpratt261,

Welcome to the forum!

Alpari UK uses a floating leverage system on MetaTrader 4 Micro, Classic and Pro accounts. This system automatically applies higher leverage on a trade by trade basis depending on your trade volume.

When you’re trading forex, an open position of less than USD3 million nominal value carries a maximum leverage of 1:500.

An open position of USD3 million to USD5 million carries a leverage of 1:500 for the first USD3 million and a leverage of 1:200 for the remaining USD2 million.

An open position of USD5 million to USD10 million carries a leverage of 1:500 for the first USD3 million, a leverage of 1:200 for the next USD2 million and a leverage of 1:100 for the remaining USD5 million.

For open positions higher than USD10 million, the first USD3 million carries a leverage of 1:500, the next USD2million carries a leverage of 1:200, the next USD5 million carries a leverage of 1:100. Everything above carries a leverage of 1:33.

For example, if you open a position of USD12 million (for example, 120 lots in USDCHF), your margin requirements will be:

http://imageshack.us/a/img9/9376/leveragex.jpg



Alex

________
Alexander Chadwick
Alpari (UK) Representative
I don't know how often I have to explain this. High leverage isn't equivalent with high risk!!! Leverage just tells you how much positions you can potentially open with an account.

If you buy 1 lot with 1:33 leverage or with 1:500 doesn't make a difference. You have a net 1 lot exposure in one direction. The difference only is that on a 1:500 you might still be able to buy another lot but you don't have to! High leverage is great as it increases your field of operation but can also be used to over leverage. But that is the fault of the individual and not of the leverage itself. You don't have to do something because you could.
Quoting johnpratt261
Other broker only from 0.6 pip EU
Hi John,

It's important when comparing spreads between brokers to keep in mind whether there are any additional commissions. For example, FXCM charges no commission on top of our spreads. Below is a snapshot I just took from the real-time spreads table here on Forex Factory, and as you can see, our spreads compare favorably with other brokers that don't charge commissions.

http://img833.imageshack.us/img833/3325/bzml.png


Spreads are important, but they are just one factor out of many to consider when choosing a broker along with 24 hour customer support, trading platforms offered, education, resources, etc. We seek to provide competitive spreads while also delivering great execution and a safe place for you to hold your funds.

It's no secret that the brokerage industry has been in the midst of a price war for the past couple of years. That combined with lower trading volumes last year have caused many brokers to struggle. There was even a broker in Europe that went bankrupt after trying to entice clients with 0 pip spreads. Last year also saw the failure of a US broker that had previously touted their razor thin spreads. We've had other brokers have to pull out of the US after being unable to meet regulatory capital requirements.

If recent events have taught us anything, it's that the financial stability of the broker you choose can have far greater implications than we previously thought. Unfortunately, the vast majority of forex brokers are privately held companies, so it's hard to know the state of their finances. Are they profitable, or are they barely staying afloat? How can you know whether they are safe place to keep your money?

FXCM is a publicly-traded company (NYSE ticker: FXCM), so information regarding our financial data is readily available. This is one of the reasons why traders have entrusted us with $1.171 billion in client funds as of the latest publicly available data.

Jason
Quoting Jason Rogers
{quote} Hi John, It's important when comparing spreads between brokers to keep in mind whether there are any additional commissions. For example, FXCM charges no commission on top of our spreads. Below is a snapshot I just took from the real-time spreads table here on Forex Factory, and as you can see, our spreads compare favorably with other brokers that don't charge commissions. {image} Spreads are important, but they are just one factor out of many to consider when choosing a broker along with 24 hour customer support, trading platforms offered,...
does ur company offer segregated accounts?...
I agree spreads are important to judge how good your trading experience would be with a broker. With commissions added (ours is from $1.80 each way) you can work out the total cost per trade. If you are a high frequency trader, it can make all the difference.

Attached Image (click to enlarge)
Click to Enlarge Name: spreads.png Size: 145 KB


Safety of funds is also a concern. As an ASIC regulated broker, FXOpen AU is bound by very strict laws with regards to the use of client funds and where they are held. We hold client funds in CBA which is one of Australia's "Big 4" banks and according to Australian law, your money can only be used to cover trading margins. This is a good thing in my opinion. We have seen too many companies go under because of economic mismanagement and poor investment of client funds by unscrupulous dealers.

Australia has a great corporate culture that frowns upon any kind of corruption or shady dealing that doesn't give everyone a "fair go". Sydney is a friendly place, so you might like to pay us a visit and see how we can help you trade well and grow.
Quoting FXOjafar
Safety of funds is also a concern. As an ASIC regulated broker, FXOpen AU is bound by very strict laws with regards to the use of client funds and where they are held. We hold client funds in CBA which is one of Australia's \"Big...
Dear FXOjafar, can you please give detailed answer how are customers of your company protected from bankruptcy of your company. Who is covered clients, what is maximum amount and etc. Detailed answer will be apreciated.
Quoting Jason Rogers
{quote} . It's no secret that the brokerage industry has been in the midst of a price war for the past couple of years. That combined with lower trading volumes last year have caused many brokers to struggle. There was even a broker in Europe that went bankrupt after trying to entice clients with 0 pip spreads. Last year also saw the failure of a US broker that had previously touted...
Dear Jason,

I would like to ask you same question as FX Open representative. Can you please give detailed answer who clients of your company are protected from bankruptcy. Who is covered clients and what maximum amount will be paid per customer.
Dear Alex, Alpari UK representative.

Can you please answer how customers of your company are protected from bankruptcy. Who is covered clients and what maximum amount will be paid per customer. Thanks in advance.
If we will get an answer from all three representatives than we can compare. I would like to hear answer on same question from CySec regulated company. Than we will be need answer from swiss company. After that all most respectable countries will be covered.
Quoting Max FX
Dear Alex, Alpari UK representative. Can you please answer how customers of your company are protected from bankruptcy. Who is covered clients and what maximum amount will be paid per customer. Thanks in advance.
Hi Max FX,

Good question.

We know that the safety of your funds is an important for your peace of mind. That is why we’d like to take the time to explain how Financial Conduct Authority (FCA) regulations work and make sure you know the facts.

FCA regulation – understanding the facts

In order to be licensed and regulated by the FCA, we need to adhere to the regulator’s rules and obligations. The FCA performs frequent checks to ensure businesses are fully compliant.

Under FCA client money rules, Alpari UK is required to segregate all retail client funds from our own funds. This separation of accounts ensures that your money can never be used as a recoverable asset by Alpari UK's general creditors.

These funds are held in separate bank accounts. We take great care and diligence in their selection. Currently the client funds are held in Barclays, Bank of America Merrill Lynch and Royal Bank of Canada, three of the world's top-tier banks. In addition to these, company funds are also held in Morgan Stanley.

It’s also important to know that the FSA requires regulated businesses to maintain a minimum capital adequacy at all times to ensure businesses remain financially stable.

Your money is protected

In the unlikely event that Alpari UK is unable to meet its financial obligations, you can submit a claim to the Financial Services Compensation Scheme (FSCS). This scheme protects up to GBP50,000 per person.

The FSCS also protects the money in our segregated retail accounts. If a bank holding the funds you have deposited with Alpari UK goes into liquidation you will be able to claim up to GBP85,000 per person and per institution.

Eligibility depends on the status and the nature of your claim.

You can find out more from this booklet or on the FSCS website.

Treating customers fairly

We put your interests at the centre of our business to ensure we comply with FSA Principle 6: “Pay due regard to the interest of its customers and treat them fairly.” Read more about how this principle is applied across all areas of our day-to-day business activities.


Alex

________
Alexander Chadwick
Alpari (UK) Representative
To Alpari UK

Does 50K FSCS scheme protects non gb citizen ?

Same question if bank goes under (which is not just remote fantasy)
Quoting Alpari UK
{quote} Hi Max FX, Good question. We know that the safety of your funds is an important for your peace of mind. That is why we’d like to take the time to explain how Financial Conduct Authority (FCA) regulations work and make sure you know the facts. FCA regulation – understanding the facts In order to be licensed and regulated by the FCA, we need to adhere to the regulator’s rules and obligations. The FCA performs frequent checks to ensure businesses are fully compliant. Under FCA client money rules, Alpari UK is required to segregate......
Thanks very much for your prompt and detailed reply. Can you please clarify your FSCS rules. Just to be clear, in unlikely even of Alpari UK going belly up, will absolutely any retail client regardless of his/her citizenship or residency be able to claim this GBP50,000 insurance payment.
Hi seaman2 / Max FX,

Quoting seaman2
To Alpari UK Does 50K FSCS scheme protects non gb citizen ? Same question if bank goes under (which is not just remote fantasy)
Quoting Max FX
{quote} Thanks very much for your prompt and detailed reply. Can you please clarify your FSCS rules. Just to be clear, in unlikely even of Alpari UK going belly up, will absolutely any retail client regardless of his/her citizenship or residency be able to claim this GBP50,000 insurance payment.
Generally speaking, the FSCS can only accept claims from individuals and small companies or small charities. Overseas financial services institutions and large companies are excluded.

Full details of who is eligible to benefit from the FSCS protection can be found here.


Alex

________
Alexander Chadwick
Alpari (UK) Representative
Quoting Alpari UK
Hi seaman2 / Max FX, {quote} {quote} Generally speaking, the FSCS can only accept claims from individuals and small companies or small charities. Overseas financial services institutions and large companies are excluded. Full details of who is eligible to benefit from the FSCS protection can be found here. Alex ________ Alexander Chadwick Alpari (UK) Representative
Hi again, thanks for your reply and for the link. But it doesn't really answer my question. Can I please have a straight answer to my question. Say if I had a China or any other passport for that matter, and lived in my respective country, would I be eligible to claim the insurance provided by the FSCS, in case Alpari UK went under?
Quoting Max FX
{quote} Hi again, thanks for your reply and for the link. But it doesn't really answer my question. Can I please have a straight answer to my question. Say if I had a China or any other passport for that matter, and lived in my respective country, would I be eligible to claim the insurance provided by the FSCS, in case Alpari UK went under?
Hi Max FX,

In the unlikely event that Alpari UK is unable to meet its financial obligations, as an individual you can submit a claim to the FSCS, no matter where you are based.


Alex

________
Alexander Chadwick
Alpari (UK) Representative
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