How to choose a broker safely | Page 2 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Broker Comparison Table/chart - best way to choose the right broker 14 replies

Martingale! How to apply it as safely as possible! 14 replies

Safely password protect your work? 8 replies

PipBoxer_SE Safely Exit an Open Trade 45 replies

Attachments: How to choose a broker safely
Exit Attachments

How to choose a broker safely

  • #21
  • Oct 30, 2013 5:12am Oct 30, 2013 5:12am
Quoting Alpari UK
{quote} Hi Max FX, I'm sorry if my post wasn't clear. 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
I am sure that it very unlikely event for Alpari. Many thanks for your detailed answers.

Summary:
1) It's very unlikely event that Alpari UK is unable to meet its financial obligations
2) any retail client regardless of his/her citizenship or residency be able to claim this GBP50,000 insurance payment
3) 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.

4) How long would it take to get my money back?
In most cases for deposits, FSCS aims to pay compensation within seven days of a bank, building society or credit union failing. We will pay any remaining claims, which are likely to be more complex, within 20 working days. For other financial services products, we try to resolve claims within six months.

Looks like that deposits with Alpari extremely safe even in very unlikely case when Alpari UK is unable to meet its financial obligations for clients with deposits below GBP50,000. Above that amount you can rely on Alpari UK reputation and guess no doubts there.

Dear Alex, please correct me if it necessary.
  • #22
  • Oct 30, 2013 5:17am Oct 30, 2013 5:17am
Quoting johnpratt261
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 ?
Will be interesting to hear answer from representatives of these companies. I already asked Exness to answer on same questions but no answers for now. But I ready bet it will be difficult for them at least to be close to Alpari Uk.
  • #23
  • Oct 30, 2013 7:44am Oct 30, 2013 7:44am
Quoting Max FX
Many thanks for your detailed answers.
I'm always happy to help Max FX.


Alex

________
Alexander Chadwick
Alpari (UK) Representative
  • #24
  • Oct 30, 2013 7:48am Oct 30, 2013 7:48am
Quoting Alpari UK
{quote} I'm always happy to help Max FX. Alex ________ Alexander Chadwick http://www.alpari.co.uk\"]Alpari (UK) Representative[/url]
Hmm..What was wrong Alex? Why did you replace the post?
  • #25
  • Oct 30, 2013 7:55am Oct 30, 2013 7:55am
Quoting Max FX
{quote} Hmm..What was wrong Alex? Why did you replace the post?
Hi Max FX,

Wanted to reinforce the fact you know that you have a broker by your side that supports you along the way. As a trader you will go through ups and downs just as the markets do. We understand that you want a world-class service and we can assure you that we are passionate about supporting you.


Alex

________
Alexander Chadwick
Alpari (UK) Representative
  • #26
  • Oct 30, 2013 6:36pm Oct 30, 2013 6:36pm
Quoting TraderPablo
{quote} does ur company offer segregated accounts?...
Hi Pablo,

FXCM is regulated in the UK by the Financial Conduct Authority (FCA). That means FXCM UK client accounts are segregated in accordance with UK regulations. Furthermore, as has already been mentioned by others, the Financial Services Compensation Scheme (FSCS) protects the clients of FCA-regulated brokers for up to £50,000 in the event of insolvency. This account protection is available to FXCM UK clients worldwide regardless of where they live.

However, I notice your forum profile mentions that you live in the US. Regulations in the US only allow CFTC and NFA regulated brokers to accept US residents as clients. That means, you would not be able to open a forex account with FXCM UK. You would have to open an account with a broker registered in the US.

It's also important to note that unlike UK regulations, the regulations in the US do not give forex accounts segregated status. That means if your US broker went bankrupt, you would not have secured creditor status in bankruptcy proceedings. Furthermore, there is no insurance protecting forex accounts in the US similar to the FSCS in the UK. All of that means it's even more important for traders in the US to make sure that the broker they choose is financially strong.

FXCM is regulated in the US by the CFTC and NFA, so we are able to accept US residents as clients. As a publicly-traded company (NYSE ticker: FXCM), we make our financials transparent, so clients and potential traders know about our performance and health. We strongly believe all traders should ask their brokers the following questions regarding their financial stability.

  1. What are your revenues?
  2. How profitable is your firm?
  3. Do you have a top-tier third party accounting firm auditing your financials?


Jason

  • #27
  • Oct 30, 2013 7:20pm Oct 30, 2013 7:20pm
Quoting Jason Rogers
{quote} Hi Pablo, FXCM is regulated in the UK by the Financial Conduct Authority (FCA). That means FXCM UK client accounts are segregated in accordance with UK regulations. Furthermore, as has already been mentioned by others, the Financial Services Compensation Scheme (FSCS) protects the clients of FCA-regulated brokers for up to £50,000 in the event of insolvency. This account protection is available to FXCM UK clients worldwide regardless of where they live. However, I notice your forum profile mentions that you live in the US. Regulations in...
Jason, thx for this valid info...typical US of A where it is legal to "bribe" a Congressman...they call it "contributions"

I don't think it is prudent to have larger amounts "parked" with US FX Brokers.....not prudent at all... trade with a certain amount...and pull the proceeds outta there imo.
  • #28
  • Oct 30, 2013 11:51pm Oct 30, 2013 11:51pm
Quoting Jason Rogers
{quote} Hi Pablo, FXCM is regulated in the UK by the Financial Conduct Authority (FCA). That means FXCM UK client accounts are segregated in accordance with UK regulations. Furthermore, as has already been mentioned by others, the Financial Services Compensation Scheme (FSCS) protects the clients of FCA-regulated brokers for up to £50,000 in the event of insolvency. This account protection is available to FXCM UK clients worldwide regardless of where they live. However, I notice your forum profile mentions that you live in the US. Regulations in...
Hi Jason,

Thank you for information about regulation of US companies.
  • #29
  • Oct 31, 2013 4:04am Oct 31, 2013 4:04am
Good news. I got answer from Exness. The answer is below. I asked them few additional questions to make picture clear completely.



Dear Max FX!


Our company guarantees the safety of funds by its internal financial policy. To provide the fulfilment of its obligations before clients the EXNESS company always hedges positions at the major banks and brokers.


The segregation of the clients' funds from the company funds is obligatory rule for EXNESS. Moreover the EXNESS company always keeps its funds on the segregated accounts in number that exceeds the financial obligations before its clients. It means that in case of one time clients' demand of withdrawing funds from their accounts, the company will be able to pay. Our financial department thoroughly monitors the balances on company accounts and timely replenish them.


The funds of EXNESS clients are also protected by the raised registered capital of the company, as well as the reserve funds that are required by the licences and regulatory bodies. EXNESS NZ is licensed and regulated by Financial Dispute Resolution (FDR) and EXNESS CY is licensed and regulated by Cyprus Securities and Exchange Commission (SyCEC). They constantly check the EXNESS company for compliance with rules of the regulatory body. Another important thing is that SySEC has a compensation fund, in which our company takes part. It means that every client of the company is protected by 20 000 euro.

  • #30
  • Nov 1, 2013 2:15am Nov 1, 2013 2:15am
Dear Max FX!


As a non-publicly traded company, we are not obliged to make our financials public.

Yes, any retail client regardless of his/her citizenship or residency is able to receive 20 000 euro in case of the company bancruptcy. The list of non-covered clients you can find here:https://www.exness.eu/download/CY/IN...ATION_FUND.pdf.

Unfortunately, such method of protecting clients funds as the compensation fund is foreseen only in SyCEC, but not in FDR. However the clients of EXNESS NZ shouldn't worry about the safety of their funds because smart financial policy of the company almost fully eliminates the possibility of bankruptcy.
  • #31
  • Nov 7, 2013 4:39am Nov 7, 2013 4:39am
We have info about US, UK, CY an NZ companies).
I asked FX Open representative how situation with AU companies.
  • #32
  • Nov 14, 2013 6:42am Nov 14, 2013 6:42am
Quoting Kilian19
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...

I agree with you. This is what I have been trying to inculcate into the mind of many forex traders that leverage does not increase your risk. High leverage only increases your ability to open more trades or buy more volumes. For example, I use 1:500 leverage offered by Profiforex and it enables me to open more positions with a capital of $500..
  • #33
  • Nov 14, 2013 8:29am Nov 14, 2013 8:29am
While choosing a broker I take into account some aspects:

  1. Money Insurance: I do not pay so much attention to regulation, fund insurance is more important for me.
  2. Reliable withdraw: In many brokers making deposit is easier than making a withdraw. They take your money easily and give it back to you in a very difficult way. That is why I accept withdraw as my indicator to check the broker. When starting to work with a broker I first make deposit then request for withdraw to see how fast and secure it is performed.
  3. Client support: This is very important point for me. What I hates about support is that you enter Live Chat ask a question regarding for example accout types, and the manager gives you a link, without any proper description or explanation. But of course there is anothe extremeness. The manager oversupports you. He requires your Email, your Tel. number, calling and calling every day without your wish. So client support should very adequate for me.

  • #34
  • Nov 14, 2013 9:11am Nov 14, 2013 9:11am
ForexFactory does not have many active and great brokers listed for some reason.
Go to myfxbook to find broker with smallest spread and then google them to see how good are they.
Just watch out for requotes and higher spikes (myfxbook allows you to spot spikes).

Spreads are very important, because this is money you directly lose opening every trade. At current market, if you pay more than 1 pip (with commisions) for EUR/USD you are paying to much.

You can check the spreads here:
http://www.myfxbook.com/forex-broker-spreads
  • #35
  • Nov 16, 2013 7:52am Nov 16, 2013 7:52am
It's a good principle of security to open several accounts at various brokers to distribute the risks !
Philippe - Account manager services
  • #36
  • Nov 29, 2013 1:55am Nov 29, 2013 1:55am
Quoting Max FX
The funds of EXNESS clients are also protected by the raised registered capital of the company, as well as the reserve funds that are required by the licences and regulatory bodies. EXNESS NZ is licensed and regulated by Financial Dispute Resolution (FDR) and EXNESS CY is licensed and regulated by Cyprus Securities and Exchange Commission (SyCEC). They constantly check the EXNESS company for compliance with rules of the regulatory body.
Got a nice answer from FMA of New Zealand.

Exness Limited are not regulated in New Zealand. There seems to be a certain amount of Russian ownership, however we cannot comment on whether they comply with Russian law.
Should you decide to deal with them you will be doing so at your own risk.

Should be same for all NZ companies without FMA license.
  • #37
  • Nov 29, 2013 4:55pm Nov 29, 2013 4:55pm
Quoting FXOjafar
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. {image} Safety of funds is also a concern. As an ASIC regulated broker, FXOpen AU...


Here is a more comprehensive spread comparison (can select from around 50 currency pairs). All the broker accounts listed are ones
in which the commissions are included in the spreads (standard accounts). http://www.forexchurch.com/forex-spreads.cfm

Definitely agree with being ASIC regulated is a big plus.
  • #38
  • Jan 5, 2014 4:12am Jan 5, 2014 4:12am
Security of funds depend on the location where you live. Generally, a regulated broker with decent reputation is a way to go. You have to look for a bank oriented broker like Dukascopy for segregation of funds and security.
Real Time Discounts for IC Markets. Partner ID = 1695
  • #39
  • Jan 15, 2014 4:38am Jan 15, 2014 4:38am
Quoting ahmerkhan
Security of funds depend on the location where you live. Generally, a regulated broker with decent reputation is a way to go. You have to look for a bank oriented broker like Dukascopy for segregation of funds and security.
You will be suprised but the laws for a bank oriented broker do not restrict the bank/broker to keep a segregation of funds
  • #40
  • Feb 6, 2014 2:43pm Feb 6, 2014 2:43pm
Quoting johnpratt261
{quote} So much Spread . For NDD Account 2.7 pip Spread EU . Other broker only from 0.6 pip EU . {quote} What mean garantee ,sonner ? Floating leverage (Alpari) that mean it can automatic change from 1:500 to 1:10 ???? So High risk .
You couldn't be more right, regulation doesn't guarantee safe trading anymore, all we need now is a reliable broker that can handle our funds well. I believe we have these types out there, all we need is to patiently seek for them and if any isn't doing well for us, it would be better we quit them. I would always say that am fortunate enough to have found Profiforex, all whom I have seen trading there have given good report, and am experiencing same thing too. I trust them with my funds, as withdrawals so far have been very smooth. The point is there are many others out there like them!
1 trader viewing now