Potential mass exodus from Spreadbetters.

This is a discussion on Potential mass exodus from Spreadbetters. within the First Steps forums, part of the Reception category; Originally Posted by Brumby I would caution that the issues probably cut both ways. An entity not subject to regulations ...

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Old Apr 12, 2018, 11:25am   #106
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Originally Posted by Brumby View Post
I would caution that the issues probably cut both ways. An entity not subject to regulations mean it is unregulated and comes with all the baggage. Be careful with what you wish for.
True that.
Anyone who's interested in binaries and SB should do it knowingly that it's unregulated and carries all the risks that the regulation was set in place to protect against.
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Old Apr 13, 2018, 8:07am   #107
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Originally Posted by swissy View Post
Unless you are resident in Australia and part of the tax system it would be highly unlikely that an Aussie broker will open an account....even if you are with the same broker in U.K., Different regulatory and tax systems.
Yep....
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Old Apr 13, 2018, 8:09am   #108
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Originally Posted by Xavier berthod View Post
Spoke with an account manager from my broker, they will find a way to keep the leverage up to 400:1 using Cayman Island, Vanuatu , Man Island, ... regulation. up to the client to get the leverage he wants based on what regulation he wants.
Hahahahahaha......I feel so assured and safe.....

Vanatu.....home of bungy jumping .....

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Old Apr 13, 2018, 8:13am   #109
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Originally Posted by bradley79 View Post
I've seen some companies that have found a loophole in the system:
ESMA only applies to brokerage firms.
Some EU brokers started opening subsidiary firms registered as gambling services (ESMA regulations do not apply for them). So, they will continue offering binaries and spread betting as a service from a third party firm (their subsidiary).
So, yeah. They found a loophole in the regulation.
Sure companies will find loopholes to offer big leverage ....but the client will not be protected if the company goes broke .....thatís the point

I can go out tomorrow and get 500:1 from a company in Timbuktu.....but I will never see my profits or deposits ever again

Itís about staying with companies that will pay you out

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Old Apr 13, 2018, 8:46am   #110
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Originally Posted by NVP View Post
Sure companies will find loopholes to offer big leverage ....but the client will not be protected if the company goes broke .....thatís the point

I can go out tomorrow and get 500:1 from a company in Timbuktu.....but I will never see my profits or deposits ever again

Itís about staying with companies that will pay you out

N
I absolutely agree. Don't get me wrong. I am not defending such practices in any way shape or form.
After all, we're all in it to make a profit and such scam brokers should be shamed, publicly ridiculed and prosecuted to the fullest extent of the law.
P.S never forget that a good broker can go bad and vise versa.
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