Generic trade broker reviews
Who is regulated in the US forex industry? Why does any of this matter for my forex trading? Why simply choosing a regulated broker does not offer you enough protection. The CFTC has the ultimate regulatory authority over the futures markets, which includes the forex markets. All generic trade broker reviews forex brokers dealing with retail clients are covered by the CFTC regulations. The Generic trade broker reviews is a self-regulated organization for the futures and forex industry and serves as a watchdog for the industry.
The NFA has the power to issue fines and to suspend operations of their members. They also provide dispute resolutions services to arbitrate disputes between investors and NFA members. The OCC is an independent bureau of the U. Department of the Treasury. The OCC is responsible for regulating futures and forex trading for national banks and foreign banks. All banks dealing in forex transactions with retail clients are subject to these OCC regulations.
The two sets of regulations are almost the same. For brokers who deal primarily with forex trading, the RFED is usually the counterparty generic trade broker reviews your forex trade. In forex trading, if you win and make money, the counterparty loses that money. If the counterparty makes money, it is because you lost money. RFED's want you to lose your money so that they can make money.
For retail forex trading, your forex broker is often an RFED. Technically, a counterparty is not a broker, but a dealer. However, "forex broker" is a widely used term used by retail traders that also refers to dealers, so this site will keep with that convention.
Just be aware that you are generally trading against your "broker", which is a conflict of interest. Note that brokers who use straight through processing to offset your trade with other counterparties are not in as direct a conflict.
A CPO pulls together money from many investors and trade the combined funds together as a pool. A large forex hedge fund generic trade broker reviews be an example of a CPO. As well, smaller managed forex accounts can also be CPOs. A CTA provides certain forex trading advice to customers. The following are not CTAs:. An IB solicits business from customers to trade forex, but does not handle any of the money or get involved in executing the transactions.
An IB typically drives forex customers to a retail foreign exchange dealer your broker. The IB is usually paid a share of the money which that dealer makes from the customer.
It matters because the forex brokers and other industry players with the most regulatory oversight are less likely to scam you. Those that are less regulated or not regulated are much more likely to scam you.
Here are some related points:. Members who solicit customers must provide risk disclosures prescribed by the CFTC that cover the following:. Additional disclosures are advised if forex trading is not advisable for a potential customer based on generic trade broker reviews goals, financial resources or forex trading inexperience.
For communications and promotional materials for the public, written procedures must be created and enforced generic trade broker reviews align with the following:. Adjusting or canceling the price of an order after it is executed is generally not permitted, with two exceptions: Price slippage happens when the price of an instrument changes between the time an order is placed by a customer, and is received by the FDM.
This is permissible if either:. In some cases it may be more than this. Simply put, many forex brokers have violated US forex generic trade broker reviews. In many cases, forex brokers have repeatedly violated those regulations. In many cases, the regulatory violations appear have been deliberate, with the intent to break the rules to take more money from their customers.
On the other hand, there are several forex brokers who have generic trade broker reviews been subject to any regulatory action over all the years they have been dealing in forex. This would appear to generic trade broker reviews an effort to run an honest business with fair treatment to customers.
Take a look at our US forex broker reviews to see which brokers have been subject to regulatory action and fines. Skip to main content. On this page we will cover: The following are the organizations that generic trade broker reviews retail forex trading: How this generic trade broker reviews together: See the following for a visual representation of the US forex regulatory relationships: The following are not CTAs: This includes most trading recommendations where everybody is receiving the same advice generic trade broker reviews Introducing Broker IB: Here are some related points: Unregulated Commodity Pool Operators: Managed funds are one of the key types of scams that we elaborate on in more detail.
THe most important thing for you to remember if that if you are going to participate in a managed fund, make sure it is a fund that is registered with the regulators.
That way you will benefit from regulatory protection, and have a better means to recover funds in the event that the fund engages in fraud. Unregulated Commodity Trading Advisors: Most of it is bad advice. By giving the advice in a generic fashion, such generic trade broker reviews is not subject to regulation. This area is full of scam artists.
Generic trade broker reviews should be very mindful of your sources of trading advice. Above all, never give trading authority to a third party unless they are a regulated commodity trading advisor. This will give you better protection in the event of a fraud.
The NFA is one of the most effective financial regulators on the generic trade broker reviews. They keep a close watch over their members, and they go after them pretty hard in the event of wrongdoing. They are not allowed to engage in any fraudulent activity or to deceive their customers. They must let you know what you are getting into. Members who solicit customers must provide risk disclosures prescribed by the CFTC that cover the following: Your dealer is the counterparty to generic trade broker reviews trades, which is a direct conflict of interest The electronic trading platform is not an exchange, but merely a connection generic trade broker reviews your dealer The money you deposit with your dealer has no regulatory protection.
In case of bankruptcy, the funds you deposited with your broker are considered unsecured creditor's claims Your dealer generic trade broker reviews the prices that are available to you. The prices offered to you may be different from the prices offered to a different customer An introducing broker may receive compensation from your business with the dealer in ways you are not aware of The risk disclosure must also inform the customer of the number of retail forex accounts and the percent that are profitable.
For communications and promotional materials for the public, written procedures must be created and enforced that align with the following: The materials must not be fraudulent generic trade broker reviews deceitful, use high pressure sales tactics or imply that forex trading is appropriate for all customers No representation can be made that deposited funds are segregated or have special protection under bankruptcy laws If claims are made that trading is commission free, the actual means of compensation must be prominently disclosed No claim may be made for guaranteed fills or no slippage unless this can be proven to be the case, and that the customer contract aligns with this fact Any mentions of potential profit must be accompanied by equally prominent disclosures of the risk of loss Claims of hypothetical performance that could be achieved by a customer using a member's systems must by accompanied by specified risk disclosures as well as a comparison to performance of actual customers over a similar timeframe Price Adjustments: The FDM only uses automated straight-through processing to enter into offsetting positions with another counterparty The price of the offsetting position was adjusted or canceled by the other counterparty The adjustment and notification to the customer take place within 15 minutes of the original order execution All customers affected by the adjustment or cancelation made by the other counterparty receive the adjustment, regardless of whether the adjustment is favorable or not Price slippage happens when the price of an instrument changes between the time an order is placed by a customer, and is received by the FDM.
This is permissible if either: Why simply choosing a regulated broker does not offer you enough protection Simply put, many forex brokers have violated US forex regulations. What kind of forex broker do you want to deal with?
And with sure trader. You Can bypass the PDT rule and have unlimited trades. Of which i have been trading with for the past several years and like this broker more than any other broker that i have tried over the past 7 years.
They have very competitive comission rates that generic trade broker reviews be negotiated for each individual trader and i really love the das trader 2. Its perfect for any hardcore trader.
Its very simplistic, doesn't have a bunch of bells and whistles, But thats what i like about it. Its got what you generic trade broker reviews. A lot of that other crap like etrade pro has a bunch of generic trade broker reviews features to make it look cool but i find it all pointless.
Speedtrader has excellent executions and usually also has a pretty good shorting list of popular stocks that people would want to short. Overall im very please with my experience speedtrader and don't see myself switching anytime soon. Customer service is excellent as you can always go to there website and use the live chat support and someone will be there with you very shortly to help!
I added Speedtrader on Fous reccomendation. I trade otc and pinks. I like having the option and they fill orders fast, also the price is right. I'm disappointed to see you recommend SureTrader just to get some affiliate bonus.
Newbies should know that company will eat away at any chance of profits. Above 1k shares and you are charged 0. Imagine buy 50k shares at. These high trade generic trade broker reviews plus the fact you have to pay monthly for generic features like L2 quotes.
So yah theres going to be some fee's involved with that. Its up to you if it is worth it to have full day trading capabilities to help you make money.
I used WTC capital the time. But they are long ago out of business prop firm. Only losers trade 5 cents stocks I typically trade stocks.
Cameron, I generic trade broker reviews appreciate the response and I apologize if I've offended you. The point I am trying to make is a lot of newbies follow people like you and your partners on profit.
I get that you have to pay a premium to get around the PDT, but those fees can become substantial and catch someone off guard. Increasing the share price might lower the risk of trading a trash stock but the price is still substantial. Obviously the higher the share price the higher the fees. Not to mention the generic trade broker reviews fee just for the privilege of tools such as L2 quotesetc. Again, I mean no disrespect and certainly don't mean generic trade broker reviews offend.
Obviously you are a talented trader and personally I think you are better than the hard sell newsletter approach of your partners over generic trade broker reviews profit. I'd also like to commend you for being honest and not deleting my comments even though they were somewhat negative. Not to take a few hundred dollars out here and there. Start taking money out when your taking thousands out to buy cars or go on vacation.
Brian, you are misinformed. You missed the small print under the per trade commission fees for Suretrader, which reads: The up to 10, shares is perfect for the stocks that Fous or Sykes play. That is my negotiation and all others that I know of who have inquired.
Not sure if you have a SureTrader acct, but if you do, hit them up via chat and you can get that negotiated deal also. I need air conditioning repair Cypress Tx air conditoner http: Best toy for Christmas I wanted to add a few notes of my sincere opinion in the hope that it helps for the success of others who will pass this way as readers or new traders to be clear on a few important items. I personally use Nonko Trader. Its similar to sure trader just a lot less fees.
And costumer service is pretty sweet. Let me know if you want more details at rosslinton yahoo. What do you recommend for me that won't subject me generic trade broker reviews the PDT rule? I just wanted to add my two cents and say that I too have been facing the problem with the PDT ruling and despite not having 25k to trade with I've been reluctant to stick generic trade broker reviews hard earned cash into an offshore broker which is free from a lot of regulation constraints.
After doing a lot of research I'm inclined to generic trade broker reviews that speedtrader but this generic trade broker reviews doesn't help small account traders.
Now this might not suit everyone but what I ended up doing was to daytrade on the UK, Canadian and Australian exchanges instead generic trade broker reviews aren't governed by the PDT ruling while managing the generic trade broker reviews swing trade in the US markets. At the time, I couldn't afford interactive brokers 10k account minimum and so I went on the hunt for a broker I could use and found an introducing broker to interactive brokers.
The broker I found is called Cap Trader and instead of a 10k account minimum I could setup with them for 2k and have basically the same benefits. Access to stocks on exchanges along with the ability to short 35, stocks. I'm not sure what the shorting capabilities of speedtrader are but I do know that interactive brokers is one of the main brokers used even though their support is pretty poor. This should be especially helpful for non us traders as most of the US brokers now have strict bars on opening non us accounts and CapTrader is based in Germany and gives you interactive brokers access with a much smaller account opening minimum.
So as long as you've got 2k and are willing to entertain trading on other exchanges, not just the US you are good to generic trade broker reviews. Fous- I will be purchasing your training bundle, but had some quick questions. Do you used speed trader, thinkorswim, and tc all at the same time? Generic trade broker reviews is each system designed todo? Finally, will all this be discussed in the training bundles?
What a douche answer, there's tons of successful people that trade penny stocks, and some still trade 5c stocks. I actually enjoyed the article and I'm making my mind up about a broker, but you're the only one tainting the blog. May 22, This is My Broker. And I Recommend you Trade with Them! In all fairness I realize that this post is more about SpeedTrader which is far less shady. Congratulations, on all those hefty commissions form Suretrader then