Trading with unregulated brokers

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Trading Education, Free Demo Account!
    Get Your Sing-Up Bonus Now!

  • Binomo
    Binomo

    Good Broker. Only For Experienced Traders!

Brokers to Avoid

The Forex Market currently is the largest offering worldwide with hundreds of opportunities and high potential gains, while investors from around the globe seeking the most convenient platforms with access to trade. Among the market proposals, there is a huge number of brokerage firms while some of the companies are regulated, means hold a license or authorized by the industry regulator and some companies are not regulated by any or are just licensed by offshore.

The whole concept of regulation is the client’s protection, which ensures the safe trading environment and investment itself. The regulated brokers have to comply with various rules and criteria set by the recognized international authority with the purpose to provide secure trading and remain licensed. In addition, authorities protecting clients by the compensation schemes that recover the client’s investment in case of the company insolvency. And of course, the regulatory body overseeing constantly how exactly the broker delivers its operation to the clients thus can detect if the things going wrong and take necessary action.

Thereof, there are a few reasons why the Brokerage House may decide not to be regulated:

  • Either the company saving operational cost since the licensing requires strict capital maintenance, follow of best practices, protective measures and so, which can be very costly.
  • Alternatively, the company might be a deceptive Broker with allegedly professional services seeking the frauds.
  • Most often the new brokers choosing to provide their service under the offshore licenses that brings partition regulation and saves total provisional cost yet does not bring the necessary protective guarantees.

Security of funds is always first in forex trading. Therefore, we always recommend and it is better to choose a Regulated Forex Broker, thus open an account with proper security of investments and follow of protective guidelines. The following list of brokers are Unregulated Brokers Reviews or the Brokers to Avoid companies, which we do not recommend trading with, due to their unlicensed operations.

Trading with unregulated brokers

As we all know, one of the things that we should always look for in the broker is the regulation. Unfortunately, binary options have become a target for many fraudulent schemes and people who are trying to use the system to rob people. Hundreds of binary brokers already operate on the Internet. And we recommend not to deal with most of them. But why? And which broker is, therefore, the right one? Let’s take a look.

Surely you’ve heard or read somewhere that a good broker must be regulated. And since most brokers are not, we cannot trust them and deal with them. However, this issue is not so simple. There are also brokers who are trustworthy, even though they are not regulated. How come?

The regulation is usually a good sign that the broker is trustworthy and will not disappoint you. However, this rule does not work every time. Regulation is not the only sign of how good of a service a broker provides. Which is the reason why some unregulated brokers provide a very good service.

Advantages of trading with a regulated broker

The biggest reason is undoubtedly the opportunity to defend yourself against the bad things under the supervision of regulators. It works like this. Binary brokers who are regulated have to abide the rules from a regulatory authorities such as CySEC. These policies were designed to protect us – traders.

If a broker wants to remain regulated, they shall not break these principles and rules. And if they do, they might be suspended and all clients will be returned their investments.

Disadvantages of trading with a regulated broker

Are there any disadvantages? Of course, otherwise, I would not have asked. ��

  • First – if we decide to trade only with regulated brokers, we will miss on brokers such as 24Option – one of the top rated brokers in the world.
  • Second – are you from or reside in the US? Bad luck. Most regulated brokers do not accept trades from the United States because it coincides with local laws and regulation authorities. Try it. When you are in the US on a holiday, open banc de binary to log in. You will only see this:

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Trading Education, Free Demo Account!
    Get Your Sing-Up Bonus Now!

  • Binomo
    Binomo

    Good Broker. Only For Experienced Traders!

Banc De Binary is voluntarily discontinuing its operations in the United States.

So in theory: regulated brokers could allow traders to trade from the US, but only if they are registered with the CFTC regulatory authority. And that means that they could not trade currencies or commodities.

How is it with unregulated brokers?

When you find a broker that you like and is not regulated – do not throw him into hell. It would be worse if they were not regulated and claimed the opposite. Which, in fact, happens!

It is recommended to google for user reviews on a broker. This can help you. However, look at the reviews on several sites, to increase objectivity.

Begin slowly. Deposit $200 and trade. Then withdraw some amount and see how everything is going. Good luck.

Author

More about the author J. Pro

Unlike Stephen (the other author) I have been thinking mainly about online business lately. I wasn’t very successfull with dropshipping on Amazon and other ways of making money online, and I’d only earn a few hundreds of dollars in years. But then binary options caught my attention with it’s simplicity. Now I’m glad it did because it really is worth it. More posts by this author

Why Should you not go For an Unregulated Broker?

Why Should you not go For an Unregulated Broker?

The forex market is swamped with brokers, some of whom are regulated and some who are not. When it comes to choosing a suitable broker to suit your needs, it can be difficult to know which to select – should you go for one of the many regulated brokers or risk going with an unregulated one? Regulated brokers are those who are registered with the financial regulatory body of their country (for example the FCA in the UK) and who must comply with the rules set down by that body.

Regulated brokers must be able to submit evidence of regular audits, must always submit their accounts on time and must adhere to stringent criteria in order to remain on the regulatory body’s lists. Unregulated brokers, on the other hand, do not have to comply with any rules but can behave in any manner they see fit. Here we look at the drawbacks of choosing an unregulated broker so that you can make an informed decision.

Why are Some Forex Brokers Unregulated?

Any online search will reveal numerous reliable forex brokers who boast their regulatory pedigree on their homepage. Being regulated adds to their credibility and helps potential investors to see that they are a trustworthy operation. Despite this, many brokerages operate without regulation in offshore jurisdictions. One of the major reasons that these brokers choose to forego regulation is that this is one way in which they can cut their operational costs.

Obtaining and maintaining a license costs a lot of money, sometimes in the millions, and this can form a barrier to those who are just setting up as a new brokerage service. Another reason is that many of these brokerages are based in offshore tax havens, which enables them to limit their tax burden. Unregulated firms are also able to offer different product ranges or service customers which they would otherwise be unable to serve. Of course there are some unregulated brokers who do not have legitimate business reasons for failing to obtain a regulation license. These take advantage of investors, engaging in fraud or bad business practices which can cause financial hardship to their clients. Traders who choose to invest with an unregulated trader and who encounter problems will have very little recourse and may suffer from significant financial losses.

What are the Risks of Choosing an Unregulated Forex Broker?

Any investor who takes the chance of trading with an unregulated broker is taking a major risk with their money. Traders are protected from mistreatment and fraud when they choose a properly regulated broker and this is vital in any circumstance where things go wrong.

Investors who choose a regulated broker can benefit from financial compensation in the event that their brokerage firm goes out of business and can have peace of mind in knowing that their broker must comply by all the rules and regulations of their regulatory body and therefore they will be safe from mistreatment. Although being regulated can be no guarantee that your forex broker will treat you well, it does help to reassure investors that their finances and personal information is in safe hands.

How to Avoid Unregulated Forex Brokers

Unfortunately, many investors end up getting scammed by unregulated forex brokers as they either are unaware of the importance of choosing a regulated broker or they did not pay enough attention when making their selection. To ensure that you are choosing a reputable and regulated broker, always take the time to thoroughly check the firm’s website to discover their regulatory body and check that their membership is genuine before committing any funds to an account.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Trading Education, Free Demo Account!
    Get Your Sing-Up Bonus Now!

  • Binomo
    Binomo

    Good Broker. Only For Experienced Traders!

Like this post? Please share to your friends:
Binary Options Guide For Beginners
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: