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Regulators trustworthy enough to prevent scams

  • #1
  • First Post: Sep 28, 2015 11:58am Sep 28, 2015 11:58am
All i know now is 3 regulation: FCA, NFA, ASIC, which i can trust when the company ran away.

And i read something like "FCA in the UK (the REAL one from UK not like affliated ones like FCA Cyprus)", how do i distinct those 2 regulation

BTW, i also know BaFin in German and FINMA in Swiss, this 2 regulation is from 2 big country, can we trust it?

If someone know a good broker which have a good regulation, let me know so we can talk about it

Here is the list of regulation

ASIC (Australian Securities and Investment Commission)
IFSC (Belize International Financial Services Commission)
FSC BVI (Financial Services Commission British Virgin Islands)
FSA (Financial Services Authority)
FSA UK (Financial Services Authority United Kingdom)
BaFin (Federal Financial Supervisory Authority)
Danish FSA (Danish Financial Supervisory Authority)
ESMA (European Securities and Markets Authority)
MiFID (The Markets in Financial Instruments Directive)
CDCC (Canadian Derivatives Clearing Corporation)
BCSC (British Columbia Securities Commission)
OSC (Ontario Securities Commission)
CySEC (Cyprus Securities and Exchange Commission)
Securities and Exchange Commission (SEC)
NFA (National Futures Association)
FINRA (Financial Industry Regulatory Authority)
CFTC (Commodities Futures Trading Comission)
FINMA (Swiss Financial Market Supervisory Authority)
Swedish FSA (Swedish Financial Supervisory Authority)
FSA Japan (Financial Services Agency of Japan)
  • #2
  • Sep 29, 2015 4:06am Sep 29, 2015 4:06am
I got my money back from the Alpari debacle. So, yes, I trust the FSA UK.

Second, every FINMA regulated forex broker owns a Swiss banking license and is therefore a Swiss bank. Swiss banks hold about one third of the worldwide private banking business. It seems like most wealthy people trust the Swiss banking system. I trust them too (disclaimer: I'm Swiss).
So, the Swiss brokers might not be the best choice for everyone, but regarding your question, I fully believe that I get my money back (at least 100k) if something goes wrong with them.
..
  • #3
  • Sep 29, 2015 11:15am Sep 29, 2015 11:15am
Quoting Slicktick
I got my money back from the Alpari debacle. So, yes, I trust the FSA UK. Second, every FINMA regulated forex broker owns a Swiss banking license and is therefore a Swiss bank. Swiss banks hold about one third of the worldwide private banking business. It seems like most wealthy people trust the Swiss banking system. I trust them too (disclaimer: I'm Swiss). So, the Swiss brokers might not be the best choice for everyone, but regarding your question, I fully believe that I get my money back (at least 100k) if something goes wrong with them.
If you got your money back from Alpari, can you share your experience and procedure how to get money when the company went down?

Do citizen from the third world have a protection from FCA or only UK and EU citizen have that? Because i read a firm detail on FCA like this
"A ‘passport’ enables an authorised firm to provide financial products or services, set up a base, or run its permitted activities in another country in the European Economic Area (EEA). This includes where a firm regulated in another EEA country passports into the UK."

Thank you
  • #4
  • Sep 29, 2015 12:35pm Sep 29, 2015 12:35pm
Quoting love.l0ve
{quote}Do citizen from the third world have a protection from FCA ...?
Yes, they have.

Quoting love.l0ve
{quote}
Because i read a firm detail on FCA like this "A passport enables an authorised firm to provide financial products or services, set up a base, or run its permitted activities in another country in the European Economic Area (EEA).
Has nothing to do with your passport, completely irrelevant (it is a EU common market thing).

Edit: there is no FSA UK anymore, it's the FCA UK now. Financial compensation is managed by the FSCS, FCA is just the regulator while the FSCS is a compensation fund paid by the financial services companies in the UK.
  • #5
  • Sep 29, 2015 1:12pm Sep 29, 2015 1:12pm
After IronFX case, i don't trust CySEC anymore, but somehow company in Cyprus got FCA like XM, here's the link and see "passport in": https://register.fca.org.uk/ShPo_Fir...000000MgFHJAA3

If company bankrupt, does FCA protect a client or they throw back the case to CySEC?
  • #6
  • Sep 29, 2015 1:19pm Sep 29, 2015 1:19pm
Quoting love.l0ve
After IronFX case, i don't trust CySEC anymore, but somehow company in Cyprus got FCA like XM, here's the link and see "passport in": https://register.fca.org.uk/ShPo_Fir...000000MgFHJAA3 If company bankrupt, does FCA protect a client or they throw back the case to CySEC?
It goes back to CySEC in that case. Notice the difference between regulated and registered. XM or the other cypus "brokers" are not FCA regulated, they are registered via that EEA passport thing. They are certainly not FSCS insured but I BELIEVE that all EU brokers are insured with at least 20k Euro (but that is just a believe, I don't know for sure).
  • #7
  • Sep 29, 2015 1:34pm Sep 29, 2015 1:34pm
Quoting JensG
{quote} It goes back to CySEC in that case. Notice the difference between regulated and registered. XM or the other cypus "brokers" are not FCA regulated, they are registered via that EEA passport thing. They are certainly not FSCS insured but I BELIEVE that all EU brokers are insured with at least 20k Euro (but that is just a believe, I don't know for sure).
If all the thing you said is true, that is very dangerous. Many trader like me not familiar UK law and other EU country law. They disguise FCA from CySEC but when thing going down, you know what happen next when CySEC handle
  • #8
  • Sep 29, 2015 1:55pm Sep 29, 2015 1:55pm
Quoting love.l0ve
{quote} If all the thing you said is true, that is very dangerous. Many trader like me not familiar UK law and other EU country law. They disguise FCA from CySEC but when thing going down, you know what happen next when CySEC handle
In the end you only have to look for "regulated", it doesn't matter in which countries they are registered, it simply means you can claim help from their regulator but they'll simply forward to the real regulation body.

On a more general note and to answer your initial question at least quiet a bit:
Regulators are always in a little dilemma. They want to be business friendly but they're also interested in preventing fraud or too unstable businesses. So the most logical outcome is that they'll act and tighten their rules AFTER shit the fan (multiple times). You can see that with the ASIC (Australia) currently. Many brokers opened shop there because it was relatively easy to do, now they're tightening up, refusing brokers without ties to Australia and so on. I guess there will be a similar development in Cyprus sooner or later. You mentioned the BaFin - well, there are barely any brokers in Germany so I don't know how experienced they are.
Personally I would go with a UK broker - FSCS insured up to 50k GBP and the FCA UK does a better job than most of its European counter parties (in the end, they have the most experience in the EU, London is still prime destination for brokers, they're advertising on taxis here which was quite a culture shock for me when I moved here from Germany). Switzerlands FINMA is definitely a good solution too but it can be troublesome with a swiss account in some countries, additionally their hurdle could be quite high (how do they say, it's easier to rob a swiss bank than to open an account there).
  • #9
  • Oct 1, 2015 7:39am Oct 1, 2015 7:39am
Quoting JensG
{quote} In the end you only have to look for "regulated", it doesn't matter in which countries they are registered, it simply means you can claim help from their regulator but they'll simply forward to the real regulation body. On a more general note and to answer your initial question at least quiet a bit: Regulators are always in a little dilemma. They want to be business friendly but they're also interested in preventing fraud or too unstable businesses. So the most logical outcome is that they'll act and tighten their rules AFTER shit the fan...
I look up FXCM firm from FCA but see this

Cloned firms

https://register.fca.org.uk/ShPo_Fir...000000MfNCCAA3

Potential Scam

https://register.fca.org.uk/ShPo_Una...000000m4JITAA2

Potential Scam

https://register.fca.org.uk/ShPo_Una...000000m4JIUAA2

i thought FXCM is a big company, they also have NFA regulation

FCA said they can't be able to settle a dispute
  • #10
  • Oct 1, 2015 8:04am Oct 1, 2015 8:04am
Quoting love.l0ve
All i know now is 3 regulation: FCA, NFA, ASIC, which i can trust when the company ran away. And i read something like "FCA in the UK (the REAL one from UK not like affliated ones like FCA Cyprus)", how do i distinct those 2 regulation BTW, i also know BaFin in German and FINMA in Swiss, this 2 regulation is from 2 big country, can we trust it? If someone know a good broker which have a good regulation, let me know so we can talk about it Here is the list of regulation ASIC (Australian Securities and Investment Commission) IFSC (Belize International...
BaFin gives you 100.000 euro protection.

I know only Varengold regulated by BaFin, but they have terrible spreads.

The best capital protection I have ever seen has ActivTrades £500.000!!!
  • #11
  • Oct 1, 2015 9:38am Oct 1, 2015 9:38am
Quoting love.l0ve
{quote} I look up FXCM firm from FCA but see this Cloned firms ...
What are you trying to tell me? There are few "clones". What has this to do with the regulator?

You can find the real FXCM under their registration number 217689 (it's on their website).

https://register.fca.org.uk/ShPo_Fir...000000MfNCCAA3

Plenty of information including the warning of existing clones so you can make sure you're dealing with the real business.
  • #12
  • Last Post: Oct 1, 2015 11:24am Oct 1, 2015 11:24am
Quoting JensG
{quote} What are you trying to tell me? There are few "clones". What has this to do with the regulator? You can find the real FXCM under their registration number 217689 (it's on their website). https://register.fca.org.uk/ShPo_Fir...000000MfNCCAA3 Plenty of information including the warning of existing clones so you can make sure you're dealing with the real business.
After reading step by step FCA term, now i understand, they are trying to warn us the scam site by using FXCM reputation. i thought FXCM create a other site to scam people

Sorry if something i said make you misunderstand, english is not my main language
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