Can a regulated broker steal your money? | Forex Factory

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Can a regulated broker steal your money?

  • #1
  • First Post: Nov 17, 2014 8:14pm Nov 17, 2014 8:14pm
There are thousands of pages about scamming brokers, and people complained about lots of thinks. The most serious problem is the problem in withdrawal.

When we talk about good/bad reliable/unreliable regulated broker, does it include the possibility that a regulated broker can take the money and run?

I think that the purpose of regulation is to avoid this (even in the case of bankruptcy), as the regulating body should guarantee the investments.

Has it ever happened? That a regulated broker steal the money?
  • #2
  • Nov 17, 2014 8:37pm Nov 17, 2014 8:37pm
Quoting etrade
There are thousands of pages about scamming brokers, and people complained about lots of thinks. The most serious problem is the problem in withdrawal. When we talk about good/bad reliable/unreliable regulated broker, does it include the possibility that a regulated broker can take the money and run?
Two possibilities:
1. that a regulated broker can take the money and disappear (i.e. go out of business)
2. that a regulated broker can take the money and still stay in business (AND stay regulated).

Quoting etrade
I think that the purpose of regulation is to avoid this (even in the case of bankruptcy), as the regulating body should guarantee the investments.
It's the not the regulating body's mandate to guarantee investments. Not guaranteeing investments is not something that I support; it's just an unfortunate fact of life. But I do however agree that regulating bodies should NEVER protect stupid and lazy investors.

Quoting etrade
Has it ever happened? That a regulated broker steal the money?
I have no answer to your question, but I thought it might be useful to establish the above context for future discussion.

Subscribed.
I'm not trying to convince anyone. I'm not in the "convincing" business.
  • #3
  • Nov 17, 2014 9:41pm Nov 17, 2014 9:41pm
Depends on the definition on "stealing".

Refco
http://en.wikipedia.org/wiki/Refco

MF Global
http://en.wikipedia.org/wiki/MF_Glob...y_and_collapse

PFG
http://en.wikipedia.org/wiki/Peregrine_Financial_Group
  • #4
  • Nov 17, 2014 10:10pm Nov 17, 2014 10:10pm
stealing? it's a 21st century, no one ever used that sentence anymore. how about account being rob while clients never know being victim. there's no such rule, law or regualation, which determined gather 2 penny from each transaction as stealing, even it happen each day at most their client's account. it's just another art of business. go watch italian job, where cage got inspirational idea for gone in 60 second, later on the Leo turn into a wolf of wall street.

"the regulating body should guarantee the investments.", they had a limitation of guaranteed client's fund.
  • #5
  • Last Post: Nov 17, 2014 11:32pm Nov 17, 2014 11:32pm
Quoting shrike
Depends on the definition on "stealing". Refco http://en.wikipedia.org/wiki/Refco MF Global http://en.wikipedia.org/wiki/MF_Glob...y_and_collapse PFG http://en.wikipedia.org/wiki/Peregrine_Financial_Group
LOL, Funny how MF Global brought out refco after they did some shady stuff and went out of business then they turn around and did some shady shit and also went out of business at the time these was top 5 futures brokers
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