Thread: Forex not Regulated!

Hi everyone,

I read a thread tha forex trading is not regulated!

I could not understand that. I mean what about the numerous brokers registered with NAFA and ohter official government in america and other countries?

In what sense fore is not regulated, if that is accurate?

Originally Posted by ;

Hello everybody,

I read a thread here tha forex trading is not regulated!

I couldn't understand that. I mean what about the brokers registered with NAFA and ohter official authorities in other nations and the US?

In what sense fore is not regulated, if that is true?

That's right, nobody will regain your missing in case your brokers shutdown, it's a game, large risk and huge returns.

Thanks walker,
But I could not understand what you exactly mean. Refco, for example, was in a problem; yet, traders were reimbursed back!

Still, can a broker only disappear in the atmosphere while registered with authorites?

Originally Posted by ;

Thanks walker,
But I couldn't know what you just mean. Refco, for example, was in a trouble; nonetheless, traders were reimbursed back!

Still, can a broker just disappear in the atmosphere while enrolled with authorites?

I never heard RefcoFX have reimbursed back folks money. The situation become worse since FXCM give up to take over RefcoFX.

I purposely chose FX since it is unregulated. I'll be the first to admit I am not a man. I have wanted to be a trader for YEARS until the NASD developed their patten day trader principle which pretty much screws anybody who would like to be a day trader unless they can come up with 25k (oh, and they have to maintain it also). I'll also be the first to admit I don't have a FRACTION of that kind of money.

Here's a link from IB that explains the principle more....

Http://www.interactivebrokers.com/en...?ib_entity=llc

FX being unregulated does not apply to the rule!

Anyway I have learned to adore fx (partly out of my dislike to the NASD). FX provides you leverage a stock broker could (and could!) Never offer a client (to to 400:1). FX transactions 24/5 and I think my broker GFT (and likely all) will let you exchange with unsettled funds....no waiting T 3!

Originally Posted by ;

Hi everyone,

I read a thread tha FX trading isn't regulated!

I couldn't understand that. I mean what about the numerous brokers registered with NAFA and ohter official authorities in the US and other nations?

In what sense fore isn't regulated, if that's accurate?

Well, it is possible to say that the FX market is regulated and not controlled in precisely the exact same time....Brokers market manufacturers are controlled so that they don't scam traders, take their cash and fly off....But on the flip side, the market itself operates within the counter. . .There is no exchange, there's absolutely not any exchange rules, there is no SEC, there is nothing to protect anyone against plays made by the big guys. . .In the stock market by way of instance, the exchange can stop the trading on a certain inventory when it sees certain activities, this might never happen in the FX market since there is not any trade in the first place...

in summary, this is a jungle with no type of protection, you are alone with your market manufacturer or your broker, cheating is permitted, sneaking not....There are some people staying out of this jungle (CFTC, NFA etc.. .) Who assure you that your companion will not steal your money and run off...


Thanks,

Nader

I am sorry, maybe I misunderstood the news on Refco.
Today, Why can a registered broker go off with its prospective murder?
When a broker runs off with its customers' cash, then why enrolling with NFA and others?

It is clearly stated in the NFA booklet that your Foreign Exchange funds aren't guaranteed.
Here's a lovely quote from page 7:

Retail off-exchange Foreign Exchange trades aren't guaranteed by a clearing
organization. Furthermore, funds that you have deposited to
trade Foreign Exchange contracts aren't insured and don't obtain a priority
in bankruptcy. Even customer funds deposited by a dealer in
an FDIC-insured bank account aren't protected in the event the dealer
goes bankrupt.

Originally Posted by ;

Thanks walker,
However, I couldn't know what you exactly mean. Refco, for instance, was in a problem; yet, traders were refunded back!

However, can a broker just disappear in the air while registered with authorites?

They could visit the officers of government, and inform them with sadness: OK I am bankrupt, derecognize my license please. Then the cash evaporated, and no monetary laws can prosecute them by. -- i guess

Even in the event that you trade on the OTC interbank you would not have your funds ensured. Granted you'd have FDIC insurance in case a sponsoring bank folded, but the party on the other end of your trade could wind up at any point and you might eliminate money.

Forex in any form is a risky investment, but the returns are so excellent. Be glad you even have the chance to engage...