Regulated Vs Unregulated Brokers

#1
Hello, I would like this thread to be a debate. Are regulated brokers really better than Unregulated Brokers? If you say Yes, please state your reason. If you say No, State your reason as well. What advantage does regulated brokers have towards unregulated brokers?
 
#2
Not sure if being regulated promises traders for quality services as you never knows when a regulated broker even turned into scam and stop paying its traders. There are many incidents in the past. It is good to choose a broker which have good repute in the market as many unregulated brokers are providing good services to their traders and in the meantime are engaged in a process of getting regulated with the authorities.
 

mohan.sic

Well-Known Member
#3
Not sure if being regulated promises traders for quality services as you never knows when a regulated broker even turned into scam and stop paying its traders. There are many incidents in the past. It is good to choose a broker which have good repute in the market as many unregulated brokers are providing good services to their traders and in the meantime are engaged in a process of getting regulated with the authorities.
billi,

Name few unregulated brokers.
 
#4
Re: Regulated Vs Unregulated Brokerages

I think regulated and unregulated does not make any harm to the market, unless both the sum of points of regulated,unregulated traders becomes equal to the nifty points.
 
#5
In this opinion i think every trader agree with me. Regulated broker are always better then unregulated broker when we talking about big capital security issue.
 

fxgood

Well-Known Member
#6
Without a basic and reasonable regulation without investor compensation funds a broker (genuine one) of course can't have access to tier 1 liquidity through their prime brokers or works as prime of prime, any broker sourcing them self other wise to tier 2 and tier 3 liquidity using margin accounts with other bigger brokers or small non banking liquidity won't offer even decent TOB for slippage free trading for professional traders

So if broker is unregulated and using a margin based account then their choice is limited to offer either a b book ( counter party risk limited to their small net worth's ) or have to offer STP with other tier 1 or tier 2 brokers based on their volumes which again increase cost of trading to their retail clients and in honest sense can't survive very long enough unless equipped with their own trading skills to manage decent volumes and accrued expenses and btw this is not end of story and not full story as well :)
 

Hulu Girl

Active Member
#7
In most cases its just a myth that if a broker is regulated your funds are secure. You have to build trust with a broker over the years. Regulated broker have license number and they are trusted in market.
 
#8
There are many brokers online and I will agree with Hulu Girl that you need to trade to build up your trust, whether Regulated or Not, your trust will be built by the trades done by your trader.
 
#9
There are many brokers online and I will agree with Hulu Girl that you need to trade to build up your trust, whether Regulated or Not, your trust will be built by the trades done by your trader.
Thanks you for agree with me. I always look for a broker who can build strong relation with his trader so that people can trust him.
 
#10
In my opinion being regulated is important however i have noticed many past examples of regulated brokers turning into scam so i think it is good enough to choose a reputed broker to trade with.
 

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