Is my broker / money safe - basic due diligence

yellowfloyd

Active member
109 2
CySEC, who are useless? come-on they are in EU

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

Mate, CySEC sucks. I think you're working for any binary options firms. I dealt with CySEC and they are useless. Those companies are registered with CYSEC all are from Israel. They couldn't manage to get a license here in UK or France or Italy. They know they have to cheat with innocent people with some cover, that's why they choose Cyprus and CySEC. Who really care about Cyprus in EU? Stop this Binary Options business.
 

tar

Legendary member
10,443 1,313
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...

True , but sometimes binary bets and spread bets or CFDs are offered in the same account e.g : IG , so in that case if IG went bust your money is protected by the FSCS up to a limit , however as i understand if you have a dispute with IG regarding a binary bet you cant complain to the financial ombudsman .
 

Magos

Established member
911 24
reply

Not working for a binary option provider in Cyprus sorry to disappoint you!

Mate, CySEC sucks. I think you're working for any binary options firms. I dealt with CySEC and they are useless. Those companies are registered with CYSEC all are from Israel. They couldn't manage to get a license here in UK or France or Italy. They know they have to cheat with innocent people with some cover, that's why they choose Cyprus and CySEC. Who really care about Cyprus in EU? Stop this Binary Options business.
 
L

Liquid validity

0 0
True , but sometimes binary bets and spread bets or CFDs are offered in the same account e.g : IG , so in that case if IG went bust your money is protected by the FSCS up to a limit , however as i understand if you have a dispute with IG regarding a binary bet you cant complain to the financial ombudsman .

Agree, I've already mentioned passive satellite FCA regulation of binaries with brokers already registered for other products:
http://www.trade2win.com/boards/new...y-safe-basic-due-diligence-3.html#post2189568
 

fxgermany

Junior member
21 0
I actually wanted to use FXdirekt as an example of regulation gone wrong and to some extend I still think this is the case because German BaFin waited way to long to close them down.

However, I stopped following this case when they finally did in December 2012, but it seems BaFin picked up pace afterwards and were quite fast to open insolvency proceedings and to declare an event of default, which allowed the compensation scheme to act. Investors have been compensated by now, but only if the held their funds in a currency of an EU member state - people who held their funds in e.g. USD didn't get a dime. It's always worth reading the fine print, I guess.

http://www.e-d-w.de/en/FXdirekt-Stand.html#teil_2
 

darktone

Veteren member
4,016 1,084
Given the recent fun games of the past 5 or so years, and having (hopefully) a better understanding of how our monetary system works, I dont trust anything! My broker gets the minimum amount of margin i need to trade the size I want. I dont want them to have a penny more than is required should they go MFG.
 
L

Liquid validity

0 0
Given the recent fun games of the past 5 or so years, and having (hopefully) a better understanding of how our monetary system works, I dont trust anything! My broker gets the minimum amount of margin i need to trade the size I want. I dont want them to have a penny more than is required should they go MFG.
Completely agree, that is the best safeguard.
The purpose of this thread was never to suggest regulated
brokers are perfectly safe.

All regulation really means is the broker is more likely
to be financially stable
and you are more likely to get some money back if they collapse.
Its just about increasing the security of your funds, there are no guarantees with anything.

Whereas with an unregulated broker, they are less likely to be financially stable
in terms of operating capital and there is zero chance of getting anything
back
should they fold or disappear.
 

darktone

Veteren member
4,016 1,084
Completely agree, that is the best safeguard.
The purpose of this thread was never to suggest regulated
brokers are perfectly safe.
Comprende. Sorry if my comment came across a bit punchy. Defo wasnt my intention. Not to well atm (manflu), bit spaced.

Cheers
DT
 
L

Liquid validity

0 0
Comprende. Sorry if my comment came across a bit punchy. Defo wasnt my intention. Not to well atm (manflu), bit spaced.

Cheers
DT
I didn't take it that way, no worries.
Far from it, I was just emphasising and fleshing out the initial point
you made, which I entirely agree with.
 

PedroAguiar

Newbie
5 0
Great stuff

Thanks so much for this great information. I'm fairly new to Forex and it was comforting to read your round up facts. I must admit there has been so much bad press of late about brokers that I am afraid sometimes to give anyone my money. So I'm glad you suggested doing the proper due diligence and research. That's really importatn. Thanks again. Pedro
 

pro_fx

Junior member
20 2
Swiss Financial Market Supervisory Authority - SFMSA,
Cyprus Securities and Exchange Commission- CSEC,
Financial Services Provider - FSP.
These were also the other regulatory bodies which are stringent with the brokers quality.
 

tar

Legendary member
10,443 1,313
I could doubt this you know, for one thing regulation doesn't strictly protect the little trader, if it does why cancel hedging. Was hedging really majorly responsible for volatility, then again why sentence us to this poisonous FIFO? I know traders who have filed class actions; all they mostly get is general remarks, disclaimers and most times referring them to the financial departments of the brokers and eventually claims get ignored. Is this what you call compensation?

Being regulated is a must , however not all regulated brokers offers compensation protection for their clients if the broker went bust , it depends on the regulatory body : NFA , FCA ... etc .
 
 
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