Hi
We all know it is better to use a regulated broker, but we also know some regulators provide more protection than others.
Therefore, without peers reviews, it is difficult to tell if a broker is trustful or not (even some peer reviews are not trustful.)
In this post, I can share some very basic things, and also wonder the answers to some questions.
I hope some experienced traders/brokers here can share some thought and opinions.
- Regulator and compensation scheme
In general, there are few well known regulators:
FCA, UK, http://www.fsa.gov.uk/register/firmSearchForm.do <- from here, you can double check broker's license
It provides compensation scheme (FSCS): http://www.fca.org.uk/firms/being-re...nisations/fscs
ASIC, Australia, http://www.asic.gov.au/
I am not sure if it provide compensation protection
CySec, Cyprus, http://www.cysec.gov.cy/default_en.aspx
I find this list, http://www.cysec.gov.cy/licence_members_1_en.aspx, but I cannot find a solid search engine on CySec website to search license number.
If someone finds it, please share.
It was said CySec provide EUR 20K compensation fund as a protection, but I dont find its details too, so if someone finds its official page, please share.
NFA, US, http://www.nfa.futures.org/
To search registered firms, http://www.nfa.futures.org/basicnet/
I am not sure if there is any compensation fund protection either.
[Question] How to complain
It is said some regulators provide fund protection, so when things go wrong, retail traders can have some safe net.
But it is really unclear to me how things should proceed if really anything goes wrong.
In this post: http://www.forexfactory.com/showthre...=296316&page=4
Takisd shares how one should complain to ASIC.
But does anyone know about other cases? (FCA / CySec / NFA)
It seems to me that it is very likely if we, as a retail trader, submit some complaint to regulators, our complaint will be ignored if it is not done in a right way.
So, even with fund protection, it is meaningless.
I hope some people can share some thoughts, or even some personal experience.
[Question] How to be re-fund by the compensation fund.
I guess that must be through complaint first, and long long time process, and then if things are really bad, and the regulator may re-fund that.
Does anyone hear about any case like this?
[Question] Licensed v.s. Regulated
In this post: http://www.forexfactory.com/showthre...=296316&page=5
JoBlo also shared some thoughts
But what is the difference? And how can we tell the difference?
On the regulator website, it is only provided with license number, is there regulated number?
If so, brokers need to provide both license number and regulated number. Or regulated brokers have different number compared to licensed broker?
This really confuses me.
---
Overall, after some research and studies, I don' find a complete information about "how to complain" to regulator.
Even the licensed / regulated is confusing.
It is always at "we are regulated" stage.
But when things go wrong, how should we do ? (and clearly, direct complaint may be useless.)
(call the police? well, many brokers are over-sea, even if they are regulated, so it is unlikely to really do something on them.)
I hope some experienced traders/brokers can provide some information.
Cheers, Wjack
We all know it is better to use a regulated broker, but we also know some regulators provide more protection than others.
Therefore, without peers reviews, it is difficult to tell if a broker is trustful or not (even some peer reviews are not trustful.)
In this post, I can share some very basic things, and also wonder the answers to some questions.
I hope some experienced traders/brokers here can share some thought and opinions.
- Regulator and compensation scheme
In general, there are few well known regulators:
FCA, UK, http://www.fsa.gov.uk/register/firmSearchForm.do <- from here, you can double check broker's license
It provides compensation scheme (FSCS): http://www.fca.org.uk/firms/being-re...nisations/fscs
ASIC, Australia, http://www.asic.gov.au/
I am not sure if it provide compensation protection
CySec, Cyprus, http://www.cysec.gov.cy/default_en.aspx
I find this list, http://www.cysec.gov.cy/licence_members_1_en.aspx, but I cannot find a solid search engine on CySec website to search license number.
If someone finds it, please share.
It was said CySec provide EUR 20K compensation fund as a protection, but I dont find its details too, so if someone finds its official page, please share.
NFA, US, http://www.nfa.futures.org/
To search registered firms, http://www.nfa.futures.org/basicnet/
I am not sure if there is any compensation fund protection either.
[Question] How to complain
It is said some regulators provide fund protection, so when things go wrong, retail traders can have some safe net.
But it is really unclear to me how things should proceed if really anything goes wrong.
In this post: http://www.forexfactory.com/showthre...=296316&page=4
Disliked{quote} Reporting to ASIC doesn't work if you haven't been through FOS. To get to FOS you need to go through the proper complaints system of the brokerage firm. I am unsure which broker but I will give a general outline of how the complaints system works. - You file a complaint with the complaints department where a complaints manager is set to handle the case. All this must be in writing, and documented. You should allow at least 2 weeks for the complaint to be finished with the complaints manager. If the complaints manager doesn't handle the complaint to your satisfaction: - You file the complaint to the directors/a director of the company in writing. The director also will take 2 weeks to finalize a written response. If you are not satisfied with the response, you gather these 2 written complaints and pass them to the ombudsman. FOS will charge the company to which there is a complaint to open a case. I'm not sure how much it is today, but it used to be a few grand. FOS will then come to a conclusion on the matter. If FOS were to ignore you completely (no correspondence) then you could go to the police or ASIC. The only reason FOS wouldn't listen to your initial claims is if you have not documented completing the complaints proceedure. Australian regulation is not a knee-jerk regulation. There is process, and its a brokers job to indicate the process should you request to file a complaint. After being a broker for a few years, I can tell you that the majority of complaints are problems with the clients side. Latency, mistakes on orders, not knowing what they are investing in are a few of the problems faced daily by complaints managers. If you have screenshot evidence of a broker scamming, all you need to show to the authorities is that you tried to settle the dispute with the brokerage firm. If the brokerage blatantly ignored you, they will rule in your favor.Ignored
But does anyone know about other cases? (FCA / CySec / NFA)
It seems to me that it is very likely if we, as a retail trader, submit some complaint to regulators, our complaint will be ignored if it is not done in a right way.
So, even with fund protection, it is meaningless.
I hope some people can share some thoughts, or even some personal experience.
[Question] How to be re-fund by the compensation fund.
I guess that must be through complaint first, and long long time process, and then if things are really bad, and the regulator may re-fund that.
Does anyone hear about any case like this?
[Question] Licensed v.s. Regulated
In this post: http://www.forexfactory.com/showthre...=296316&page=5
JoBlo also shared some thoughts
Disliked{quote} Not only Licensed....but make sure they are Regulated by the particular authority, just because a broker is registered/licensed with a particular authority, it does not mean that they are necessarily regulated/governed by that authority..Ignored
On the regulator website, it is only provided with license number, is there regulated number?
If so, brokers need to provide both license number and regulated number. Or regulated brokers have different number compared to licensed broker?
This really confuses me.
---
Overall, after some research and studies, I don' find a complete information about "how to complain" to regulator.
Even the licensed / regulated is confusing.
It is always at "we are regulated" stage.
But when things go wrong, how should we do ? (and clearly, direct complaint may be useless.)
(call the police? well, many brokers are over-sea, even if they are regulated, so it is unlikely to really do something on them.)
I hope some experienced traders/brokers can provide some information.
Cheers, Wjack