Time to think about where your deposited money is placed | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

Swap Deposited Into Debit/Credit Account While Trade is Open 1 reply

Withdrawing funds deposited by credit card 16 replies

Dear Full time/Part time Traders – Thanks for your time and help 7 replies

Automatically moving stops and limits once a trade has been placed 2 replies

extra order placed 3 replies

Attachments: Time to think about where your deposited money is placed
Exit Attachments

Time to think about where your deposited money is placed

  • #1
  • First Post: Jul 31, 2016 6:26am Jul 31, 2016 6:26am
There are to come strains and challenges for the banking system across Europe. Some countries will be worse off than others. Part of the due dilligence before depositing money with a broker, is to consider the solidity of the banks they are using.

Regulation is more important than ever. Specifically look into the terms and amount covered by compensation schemes.

Below are results of ECB stress tests of banks:
Attached Image (click to enlarge)
Click to Enlarge Name: banker.jpg Size: 117 KB
Do not let the cost of being wrong, exceed the prize of beeing right
  • #2
  • Jul 31, 2016 12:38pm Jul 31, 2016 12:38pm
As per stat Imagine Cysec regulations from Cyprus
Never Gamble Forex
  • #3
  • Jul 31, 2016 12:59pm Jul 31, 2016 12:59pm
Where is Australia? Owh, UK is good?! So I think both FCA and ASIC regulated brokers would fine then.
fooled by randomness in art
Meditation All Time Return: 8.9%
  • #4
  • Jul 31, 2016 1:05pm Jul 31, 2016 1:05pm
There has been huge concerns over the amount of "rotten" loans with the Italian banks. It is according to this survey at around 17%, that is a huge number. Still way off the two worst countries in Europe.

1 out of 2 loans are considered as bad loans with Greek and Cypriotic banks.

If the shit hit the fan, the sheer amount of possible bad loans with banks from these countries are alarming.

Quoting yesyoucan
As per stat Imagine Cysec regulations from Cyprus
Well, to make it even worse, practically no regulation just worsen the picture.
Do not let the cost of being wrong, exceed the prize of beeing right
  • #5
  • Jul 31, 2016 1:10pm Jul 31, 2016 1:10pm
Quoting RoelsMajor
Where is Australia? Owh, UK is good?! So I think both FCA and ASIC regulated brokers would fine then.
I don`t know about the Australian banks. I can only assume that their financial sector are well regulated and that is promoting responsible behaviour from it.
Do not let the cost of being wrong, exceed the prize of beeing right
  • #6
  • Jul 31, 2016 9:54pm Jul 31, 2016 9:54pm
As per Graphical chart Only FCA UK found okay, if considering Bank positions. I see Russia No where in chart. Russian brokers are worst . Not everyone able to trade with CFTC regulated US brokers but they're extremely safe.

anyway one may try with Seychelles regulated brokers with low capital since some of brokers covered under Investor protection scheme.

ASIC is okay for Australians only.

CYsec and other regulations are paper regulations only.

​Decima were talking about banks situation , we referred to safety with fx brokers whose capital maintained with banks of those countries.
Never Gamble Forex
  • #7
  • Jul 31, 2016 10:37pm Jul 31, 2016 10:37pm
Quoting yesyoucan
As per Graphical chart Only FCA UK found okay, if considering Bank positions. I see Russia No where in chart. Russian brokers are worst . Not everyone able to trade with CFTC regulated US brokers but they're extremely safe. anyway one may try with Seychelles regulated brokers with low capital since some of brokers covered under Investor protection scheme. ASIC is okay for Australians only. CYsec and other regulations are paper regulations only. ​Decima were talking about banks situation , we referred to safety with fx brokers whose capital...
So, you're saying Exness is a bad broker?
  • #8
  • Aug 1, 2016 12:08am Aug 1, 2016 12:08am
Quoting yesyoucan
As per Graphical chart Only FCA UK found okay, if considering Bank positions. I see Russia No where in chart. Russian brokers are worst . Not everyone able to trade with CFTC regulated US brokers but they're extremely safe. anyway one may try with Seychelles regulated brokers with low capital since some of brokers covered under Investor protection scheme. ASIC is okay for Australians only. CYsec and other regulations are paper regulations only. ​Decima were talking about banks situation , we referred to safety with fx brokers whose capital...
Russia is not covered by the European Banking Authority, so they are not in the survey.

I would never put my money and trust a Seychelles regulation...

According to regulations, brokers should keep investors money separated from their company`s money. This is a security measurement clients should benefit from, to keep their money safer. In the big picture you should also be aware of the banking situation of the brokers.

If the brokers bank goes bust, you should be aware of what terms or compensation schemes you fall under. Will your deposited money be counted as a bank customer or investor? Wich rules will come into play for you accordingly.

The safest place is Norway, solid banks with govermental guarantee of deposited money of up to 2 millions NOK. Unfortunately, no retail brokerages operates from here.

The best alternative, when considering regulation and also solidity of banks are the UK. Here you get the best from both. No coincidence that this is the financial hub of Europe as wel...
Do not let the cost of being wrong, exceed the prize of beeing right
  • #9
  • Aug 1, 2016 8:28am Aug 1, 2016 8:28am
Quoting RoelsMajor
Where is Australia? Owh, UK is good?! So I think both FCA and ASIC regulated brokers would fine then.
Definitely no need to worry about Australian bank's exposure to European debt. Not an issue at all.
Do you trade forex on an ECN account? DM me for $4.60/RT at Vantage FX.
  • #10
  • Aug 1, 2016 2:19pm Aug 1, 2016 2:19pm
Greek Banks buying anything toxic from big banks (like Deutsche/Paribas) and the state (aka the people) paying the american and the european crisis those loans are not from houses of there customers.... Ahhh banking system
  • #11
  • Last Post: Aug 2, 2016 12:17am Aug 2, 2016 12:17am
Quoting Ecb
{quote} Definitely no need to worry about Australian bank's exposure to European debt. Not an issue at all.
You're correct that Australian bank exposure to Europe is negligible, and Forex brokers with segregated accounts in any of the Big 4 (such as Vantage FX at National Australia Bank) are safe.

From last year's RBA Financial Stability Review:

Quote
International geopolitical events, such as those in Greece and Russia, have been prominent in recent months. Australian-owned banks' direct exposures to Greece and emerging Europe (including Russia) are a negligible share of their global consolidated assets (Table attached); foreign banks operating in Australia have little exposure to these countries as well. As a consequence, these events do not present a direct risk to the Australian banking system. There could be indirect effects, however, if the economic and financial challenges in Greece and...
Attached Image (click to enlarge)
Click to Enlarge Name: ausbank.png Size: 26 KB
Australian Forex Broker - Try a Vantage FX RAW ECN Account Today.
0 traders viewing now