You've missed the crux of my argument.
The brokers you seem to prefer are unregulated for one reason.
They wouldn't meet the regulatory requirements, and they can't afford the
cost of the whole process.
So why don't they go down the more costly regulated route, and
take the "inferior" regulated brokers business from them.
Simple, they can't afford to.
Bearing that in mind, and as you said, a regulated broker is better.
Why would anyone use one of these outfits?
Nobody in their right mind would trade for income with serious money with that type of broker.
You mentioned telling a forex trader to trade futures.
So you see no distinction between an ECN like interbank broker and
a dodgy Cyprus based russian mafia owned forex broker?
Which leaves the only realistic possibility, they know their customer don't have a
clue, and are basically easy pickings.
That is the only reason you are here to steer mug punters to those brokers.
1. Untrue- you have no basis for this and are going down the same route of simply bashing them for no reason now. Uncalled for. With binary options, it's almost impossible NOT to meet the requirements. It's unbelievable how easy it is because there's no leverage and the marketing materials are all acceptable by the FSA and CYSEC and MIFID so... no idea what you are getting at. Regulation for binary options will begin in full force in 2013 (in Europe and even in Japan later in the year). So again, NO IDEA what you're talking about.
These companies are unregulated today BECAUSE THERE IS NO REASON TO BE REGULATE OUTSIDE THE US AND UK. NO one is regulating Binaries. Even in the US, it's not really 100% understood seeing as how the CFTC refuses to touch the subject and the SEC likely won't deal with it ever. So long as binary options companies don't offer forex via their platforms to US customers, there is NO regulation on it. It's not 100% legal either. But it's NOT regulated. It's a problem in the US. But that's the whole problem, ie NO ALTERNATIVES. But nearly EVERY binary broker WILL be regulated come mid 2013. So again, no clue what you're talking about. You have no basis for this.
2. I don't see why a Cyprus based company, part of MIFID, and probably even passported into the FSA, is an issue. In the end, FXPro (pretty much exactly what you described) is passported into the FSA. So who do you have an issue with? the owners? the clients? or the regulators?
Pissed off that mafiosos can run forex companies? Ask the FSA why they allow it?
Please -people, get off your high horses. Half the forex companies out there are being run by ex-casino operators or mafia peeps. The other half are Wall St. styled thugs that found themselves a license to steal.
Seriously, if you don't want to trade with an unregulated broker - fine. It's probably a good choice. Just don't tell me that the FSA is going to protect me when GFT screws me over. And don't tell me that NADEX is the answer, as they such monkey scrotom. And don't tell me that FXPRO is any different than anyone else regulated or otherwise. Binary options are a product that are desirable by the public and the CYSEC are the only ones going out the regulate it with MIFID to follow suit shortly thereafter. The Japanese are doing it too. But that's basically it. So what am I left with. An FSA run operation that lets the broker do as he pleases and if he fails, well, im insured. But I will lose anyway cause binary options arent a regulated activity. Hmmm - Ill pass
Nadex- worst service on the planet. Again. Ill pass
Unregulated broker that will give me service and pays out W/Ds quickly. hmmm not easy to find, admittedly, but I can name 3-4 that meet the grade. Oh, and guess what - because they know it's going to be a regulated market, they are already doing compliance just like a regulated company.
If you choose to bash - next time do it to someone dumber or less informed than me. I am simply too close to this and know a bit more than you. And as yet, I never promoted a particular broker. I am just saying the unregulated market is a big problem - but manageable. There are in fact brokers out there that do care, do give great service, do not mess with pricing, and do pay out W/Ds.
OMG