Is my broker / money safe - basic due diligence

L

Liquid validity

0 0
Liquid validity: nice reply here but not sure that you understand regulation in full!

Even if the broker is not regulated it does not imply he is cheating or he is illegal?

Offshore brokers do have responsibilities to the financial authority body where they reside or the bank that issued them license to hold clients funds. If they are not allowed to hold clients funds then they are illegal by default! (lot of these broker schemes exist).

Do you think that registering a broker dealer to hold client funds is an easy process? do you know anything about Anti-Money Laundering and Counter-Terrorism Financing Act, KYC, World Check, Segregation, etc.?

Is being a while since I wrote something on Trade2Win, but I have always been a good friend with Management.

Stops are for buses is catchy, I am glad you like it.

:rolleyes: Thats why they register in places like the BVI - as none of that
applies or is so lax it may as well not exist.

No one is saying a UK or USA registered broker can be unregulated.
Thats the whole point, they advertise a UK address (virtual office P.O box).
Somewhere in the fine print, the company is registered in the BVI or similar,
hence outside of the jurisdiction of the regulation bodies.

Do you know anything about the current state of affairs regarding
the surge in binary options brokers, and the way they operate?
I know plenty about regulation, and the loop holes that allow firms to escape regulation...
 
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Magos

Established member
911 24
BVI has regulation
http://en.wikipedia.org/wiki/British_Virgin_Islands_Financial_Services_Commission
http://www.bvifsc.vg/

Not the most strict but they do! they also issue sanctions:
http://www.bvifsc.vg/en-us/searchresults.aspx?Search=forex

1 Royal Forex Trading Ltd. - Advisory Warning No. 8 of 2010 (December 10, 2010) - Relevance: 1007
Advisory Warning No. 8 of 2010 10 December, 2010 ADVISORY WARNING ROYAL FOREX TRADING LTD Tortola, ...
http://www.bvifsc.vg/News/tabid/160/ArticleType/ArticleView/ArticleID/91/language/en-US/Default.aspx - 1/21/2012 11:59:02 PM
2 Golden Forex - Advisory Warning No. 7 of 2009 - Advisory Warning No. 7 of 2009 (22 May 2009) - Relevance: 1005
ADVISORY WARNING The British Virgin Islands Financial Services Commission (FSC) is issuing this adv...
http://www.bvifsc.vg/News/tabid/160/ArticleType/ArticleView/ArticleID/65/language/en-US/Default.aspx - 1/21/2012 11:59:02 PM
3 Foreign Exchange Currency Trading Frauds. - Advisory Warning No. 9 of 2009 - Advisory Warning No. 9 of 2009 (16 June 2009) - Relevance: 1004
ADVISORY WARNING FOREIGN EXCHANGE CURRENCY TRADING FRAUDS The British Virgin Islands Financial Serv...
http://www.bvifsc.vg/News/tabid/160/ArticleType/ArticleView/ArticleID/67/language/en-US/Default.aspx - 1/21/2012 11:59:02 PM
4 USAFX Online - Advisory Warning No. 7 of 2010 (10 December 2010) - USAFX Online - Advisory Warning No. 7 of 2010 - Relevance: 1001
Advisory Warning No. 7 of 2010 10 December, 2010 ADVISORY WARNING USAFX ONLINE Tortola, British Vir...
http://www.bvifsc.vg/News/tabid/160/ArticleType/ArticleView/ArticleID/90/language/en-US/Default.aspx - 1/21/2012 11:59:02 PM

So on the BVI example you are wrong, you are just referring to illegal brokers! which they are many.

Coming to the Binary Options and to your question "Do you know anything about the current state of affairs regarding the surge in binary options brokers, and the way they operate?" Yes I do.

There is a fine line between Gambling and Trading and you should know that.

If you have any questions on regulation regarding offshore, licensed or any other compliance issues I would be gladly at your service.

Thanks
 
L

Liquid validity

0 0
You clearly don't know what you are talking about...
All your examples are forex.

Binary options brokers require no regulation under any financial services body globally.
Its still classed as gambling, that is how they circumvent financial services regulation.
Which is why there is a global surge in binary brokers:
http://www.fma.gv.at/de/verbraucher...websites-offering-binary-options-trading.html

This thread was primarily sparked by the number of questions popping up
about binary brokers, example:
http://www.trade2win.com/boards/fix...4-binary-options-con-scam-18.html#post2026340
If you give a sh1t, read that thread to see what I mean, there are plenty of other examples as well.
 
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L

Liquid validity

0 0
Come on please read what I wrote above! spend sometime and if you do not understand it please contact me.

http://forexmagnates.com/gaming-or-...gulate-binary-options-as-a-financial-product/

The above is just an example.

Anyway instead of learning or reading what I am writing, you are looking for arguments with your attitude and your inexperience!

:rolleyes: FFS you are talking about FOREX.
Binary options are not covered...
Why don't you try reading...

As for looking for an argument, I pointed out the inaccuracies in your first post.
You started it with the patronising bullsh1t:

Liquid validity: nice reply here but not sure that you understand regulation in full!

Even if the broker is not regulated it does not imply he is cheating or he is illegal?

Offshore brokers do have responsibilities to the financial authority body where they reside or the bank that issued them license to hold clients funds. If they are not allowed to hold clients funds then they are illegal by default! (lot of these broker schemes exist).

Do you think that registering a broker dealer to hold client funds is an easy process? do you know anything about Anti-Money Laundering and Counter-Terrorism Financing Act, KYC, World Check, Segregation, etc.?

Is being a while since I wrote something on Trade2Win, but I have always been a good friend with Management.

Stops are for buses is catchy, I am glad you like it.

Don't like it in return, tough.
 
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L

Liquid validity

0 0
Baby steps then.

Alpari are offering Binary Options: http://www.alpari.com/accounts/binary-options-account

Can they do it without FCA approval?

OK, lets both back up and calm down, fair enough?
I have got quite heated as well, so you aren't totally to blame.
There have been several multinics with vested interests
posting objections to content like this or similar, hence my stance.
Now thats clear, I will explain your above point.

A UK / USA registered firm like Alpari or IGindex do not have to be registered to offer
binaries.
They just happen to be registered as their other products require it.

If someone wants to trade binaries, I would suggest they go down that route.
Ideally they are best left alone:
http://www.forbes.com/sites/investor/2010/07/27/dont-gamble-on-binary-options/

A standalone binary broker offering no other products, does not need to
be regulated by any financial services body as its classed as gambling globally.
 

Magos

Established member
911 24
That cools things down a bit!

Some jurisdictions require Binary Options to be regulated and some not! Cyprus started to fine people for example!

The big problem here is that they hold client funds! if they do not some-sort comply with AML of whoever gives them the bank account then they are committing a fraught (most cases companies say they hold companies funds instead of client funds!).

Binaries are binaries - up and down; are they gambling? this is still subjective (gray area).
 

Magos

Established member
911 24
CySEC, who are useless? come-on they are in EU

Anyway: General question have you ever worked in a broker or binary option provider?
 
L

Liquid validity

0 0
That cools things down a bit!

Some jurisdictions require Binary Options to be regulated and some not! Cyprus started to fine people for example!

The big problem here is that they hold client funds! if they do not some-sort comply with AML of whoever gives them the bank account then they are committing a fraught (most cases companies say they hold companies funds instead of client funds!).

Binaries are binaries - up and down; are they gambling? this is still subjective (gray area).

Yeah no worries, had a few heated run ins with dodgy brokers on here,
hence why I got a bit spirited :LOL:

Currently, as far as I'm aware, binary only regulation is still entirely voluntary.
Although the FCA have recently registered a binary only broker.
Its slowly edging away from no regulation.

However, client funds is another issue entirely.
All these outfits are classed as bookmakers, which they are - not exchange traded.
Even in the UK, it may surprise a lot of people to know that the
FCA client money regulations do not apply to bookmakers:
http://www.fca.org.uk/firms/firm-types/intermediaries/client-money
http://www.bookiebusters.net/features/safe_money.html
Thats in the UK, in other jurisdictions, its even worse...

So basically, unless a binary broker is FCA, or NFA registered, I wouldn't touch them.
 

yellowfloyd

Active member
109 2
Even if the broker is unregulated he can be trustworthy!

Do not forget that all brokers reside somewhere, and as a client you always have the right to send your email or complains to the regulator of where he is residing - this will cause him similar problems to a regulated one.

The financial bodies make sure that all brokers are fair, they just need to know about it.

If the broker is registered with the FCA then you have their protection should things go wrong. If the broker is not regulated then that's a clear indication that they are an illegal operation.
 

Magos

Established member
911 24
when and if you end running your own broker client funds are the biggest milestone (regulated or not)!
Depending on your morality of course.
 
L

Liquid validity

0 0
when and if you end running your own broker client funds are the biggest milestone (regulated or not)!
Depending on your morality of course.

Yes agree entirely.
Thats the problem though.
Most binaries are not actually brokers, but bookmakers.
Until that changes and binaries are classed as a financial services product,
and not a gambling product, this issue will remain.
Unless they are voluntarily registered with the FCA / NFA.
 
 
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