LMFX broker discussion

[moka2]

Look at so called Regulated brokers that have ran away with peoples deposits and nothing has happened..

First of all lets clarify when we say broker are we talking about OTC FX/ CFD or Equity/ Futures
With Equity, most countries have some sort of insurance or a Recovery fund , USA = SIPC, UK = FCSC, etc
With FX and Futures : Only checks and balances Except in UK and may be few of the EU countries

Fraud can happen any place, how does that argument justify using thinly regulated "broker"
Unless those who promote have vested interest!

TO give you a racing example
IF both the Bookmaker and the Pari Mutul board are offering similar odds Why would I bother with a Bookies when the pari mutual system provider has no conflict with if I win or loose! while to survive
the Bookmaker does need t most of the punters to loose
The Pari Mutual board is only interested in punters participating same way a True Exchange is interested in traders "participating"

Any way it is your money if you want to take a risk of using such dodgy brokers it is your risk, but don;t pretend that that is same as choosing a properly regulated and perhaps better Exchange Traded product

 

[Aiman]

First of all lets clarify when we say broker are we talking about OTC FX/ CFD or Equity/ Futures
With Equity, most countries have some sort of insurance or a Recovery fund , USA = SIPC, UK = FCSC, etc
With FX and Futures : Only checks and balances Except in UK and may be few of the EU countries

Fraud can happen any place, how does that argument justify using thinly regulated "broker"
Unless those who promote have vested interest!

TO give you a racing example
IF both the Bookmaker and the Pari Mutul board are offering similar odds Why would I bother with a Bookies when the pari mutual system provider has no conflict with if I win or loose! while to survive
the Bookmaker does need t most of the punters to loose
The Pari Mutual board is only interested in punters participating same way a True Exchange is interested in traders "participating"

Any way it is your money if you want to take a risk of using such dodgy brokers it is your risk, but don;t pretend that that is same as choosing a properly regulated and perhaps better Exchange Traded product

I understand but my point is other than usa regulators.. I don't think regulation is as strcit as everyone makes it to be

There are many brokers that i wont name that are "regulated" and dont pay client withdrawals.. I was a victim of this

 

[moka2]

I understand but my point is other than usa regulators.. I don't think regulation is as strcit as everyone makes it to be

There are many brokers that i wont name that are "regulated" and dont pay client withdrawals.. I was a victim of this

Again what kind of instrument? OTC or Exchange traded? Purely from Client Money protection point of view ,mostly UK is better than US / Australia across all Futures/ OTC FX/ Stock
Purely for stock, All three are equal with SIPC in USA, FSCS in UK and ASG in Australia, If a broker goes burst you can make a claim with the regulator if there is not enough money left with the broker

 

[ph_trader]

Im not regulations guru but i guess im learning from u guys, yes regulators and good ones are really essential especially for individuals with larger investment, not just tens of thousands, maybe hundreds and even millions, on that note i would say yes they do have the option to secure their funds with a good regulatory or a higher grade broker/bank if necessary right? everything starts from nothing, good brokers where newbies at once. but in this industry i learned that testing a broker is way better than simply judging by age, dont get me wrong, even with small investments i am a very cautious trader, even if im not that good of a traders but still its money im investing from a hard earned work/business/trading, so i test them if im positive, play along with smaller accounts till i get my ROI back, and just keep an eye open as time goes by, will it last? will they be better? who knows, but one thing i know if im earning with less hassle then its good. trying to keep it simple

 

[moka2]

Im not regulations guru but i guess im learning from u guys, yes regulators and good ones are really essential especially for individuals with larger investment, not just tens of thousands, maybe hundreds and even millions, on that note i would say yes they do have the option to secure their funds with a good regulatory or a higher grade broker/bank if necessary right? everything starts from nothing, good brokers where newbies at once. but in this industry i learned that testing a broker is way better than simply judging by age, dont get me wrong, even with small investments i am a very cautious trader, even if im not that good of a traders but still its money im investing from a hard earned work/business/trading, so i test them if im positive, play along with smaller accounts till i get my ROI back, and just keep an eye open as time goes by, will it last? will they be better? who knows, but one thing i know if im earning with less hassle then its good. trying to keep it simple

Sorry but what is your point , for small money shall one ignore all the regulatory, Protection etc That I have mentioned?

 

[ph_trader]

nah, i mean in my situation lets say, I took a risk (investing money i dont mind loosing), so each risk has two outcomes maybe three loose or win maybe break even. I traded earned got my investment back (thats a win win) or traded lost with an amount i dont mind losing (take it and move on) basically i put in to prospective what might happen, safety protection is good dont get me wrong, I am for good regulations in good countries good companies will always be a plus. but I keep an open window for what ifs, everything good started from nothing, more like a leap of faith LOL corny as it may sound but thats how brokers start.

I guess what im trying to say is, this is all a personal prespective, on the other hand if i were to lets say go with a good amount with a very good regulated broker a new broker and all of a sudden **** happens and lost it all with the broker closing up now thats worst case scenario a lose lose situation. and me coming from south east asia no matter how much i have it wont be as easy to get it back.

like alpari UK not sure if people got their money back after the CHF last year, ****** was another known (wont say good) but they continued to accept deposits despite not being able to release any withdrawal for months. and many more, fines here and there. etc.

its more of a scattered thoughts really, about brokers regulations etc. but as traders in the end what matters is do i earn? can i hit my roi? if i do no matter what broker it is with what regulations they might have then as a TRADER its a win win situation.. dont mind my thoughts too much if you find them with no directions, but these are little things that keeps me thinking and it does help when taking certain risks.

 

[moka2]

nah, i mean in my situation lets say, I took a risk (investing money i dont mind loosing), so each risk has two outcomes maybe three loose or win maybe break even. I traded earned got my investment back (thats a win win) or traded lost with an amount i dont mind losing (take it and move on) basically i put in to prospective what might happen, safety protection is good dont get me wrong, I am for good regulations in good countries good companies will always be a plus. but I keep an open window for what ifs, everything good started from nothing, more like a leap of faith LOL corny as it may sound but thats how brokers start.

I guess what im trying to say is, this is all a personal prespective, on the other hand if i were to lets say go with a good amount with a very good regulated broker a new broker and all of a sudden **** happens and lost it all with the broker closing up now thats worst case scenario a lose lose situation. and me coming from south east asia no matter how much i have it wont be as easy to get it back.

like alpari UK not sure if people got their money back after the CHF last year, ****** was another known (wont say good) but they continued to accept deposits despite not being able to release any withdrawal for months. and many more, fines here and there. etc.

its more of a scattered thoughts really, about brokers regulations etc. but as traders in the end what matters is do i earn? can i hit my roi? if i do no matter what broker it is with what regulations they might have then as a TRADER its a win win situation.. dont mind my thoughts too much if you find them with no directions, but these are little things that keeps me thinking and it does help when taking certain risks.

Sorry but to me it seems that you are taking this entire thing about proper markets transparency etc very lightly ! I have lost money in ASIC regulated Fx broker failure ( so not even Malta or Cyprus but supposed to be first world country like AUS! ) that woke me up so in my search this is dam important that my capital is protected please don;t trivialize this aspect by saying this is random thoughts etc By the way you mentioned you are from asia .. Let me ask you a simple question why so many financial houses has regional HQ in Singapore simple becasue good regulations and Rule of Law...

 

[moka2]

Basically the forex broker have some identity which defines the best broker, so i want to know about this broker. What are the good norms of this broker? Any one has experience with this broker?

So I am assuming you are asking about This Broker LMFX

Any broker ( FX CFD/OTC) you wish to consider please ask point blank questions
(if they pass if you get satisfactory answer you can consider it - I suggest you also have a look at the thread on FXCM and my questions to them and the answers)
Q
- Where are they regulated ( Best UK)
- Does that countries authority guarantee client money in case of broker failure?
- Is the broker offering true ECN

(Warning: do not fall for the sales pitch saying/ you funds are in a Top tier bank etc that is half the answer, THAT DOES NOT PROTECT you in case broker goes burst)

Once the answers are positive then you can compare between brokers on spread/ carry charges. platform etc

BY the way you seems to be based in India, if so I doubt if it is legal to trade on Margin FX outside India!

 

[ph_trader]

the thing about india, I mean i have read somewhere that the gov do not allow forex trading, but if you look at the number of indian traders (and i believe they are really good at it) there is a lot.. is there like a bypass to it or something.

 

[moka2]

the thing about india, I mean i have read somewhere that the gov do not allow forex trading, but if you look at the number of indian traders (and i believe they are really good at it) there is a lot.. is there like a bypass to it or something.

Being a good trader and being allowed to trade as per Reserve Bank/ govt rules are two diff things

 

[trade2bpro]

Does this broker provide VPS? If there is, is it free for a certain deposit amount?

 

[ph_trader]

i think they do offer a VPS service

back to indian traders, what i mean is, in india in general i think trading forex outsite the gov jurisdiction is not allowed, but the governemnt do not have the power to contain it.. well thats how i look at it.. thats why people are still able to trade, there is nothing wrong in trading and risking ones own money, but some governments try to keep the situation contained through other means. in my situation i do trade forex and get my profits into my bank account in forms of remittances, small fees, but I dont think its declared as forex trading profits. maybe coz our gov are pretty much immature in this field. though there was one local broker that did not last long, they offered mt4 and god knows what happened after that

 

[moka2]

Trading FX from India

Hello PH
Are you from India or Philippines? diff rules may apply
As far as India is concerns IT IS not allowed, people may do it but they can get detected and the Indian authorities are not that dumb inward remittance has to be explained

 

[progix]

I guess indian traders can trade with online forex brokers however the brokerage business is not allowed so the authorities do keep checks on outward and inward transactions.. IMO

 

[ph_trader]

Hello PH
Are you from India or Philippines? diff rules may apply
As far as India is concerns IT IS not allowed, people may do it but they can get detected and the Indian authorities are not that dumb inward remittance has to be explained

im from the phil, and yes i am aware that india do not allowed off shore trading/forextrading.. but the thing is i also get my forex profit through local banks etc and it does appear like any other remittances, meaning this will include normal money transfers from online money processors, i think skrill can be used as a mod of payment to some online services something simillar to paypal. I get my forex earnings to a local bank and its tagged "remittance" of course fees will aply but its very small, not indicating if its from forex nor if its from skrill. and so on.. thats why i say there are still many many indian traders despite having a law saying its not allowed, im not saying thats its the right thing to do but im saying people do do it

 

[moka2]

im from the phil, and yes i am aware that india do not allowed off shore trading/forextrading.. but the thing is i also get my forex profit through local banks etc and it does appear like any other remittances, meaning this will include normal money transfers from online money processors, i think skrill can be used as a mod of payment to some online services something simillar to paypal. I get my forex earnings to a local bank and its tagged "remittance" of course fees will aply but its very small, not indicating if its from forex nor if its from skrill. and so on.. thats why i say there are still many many indian traders despite having a law saying its not allowed, im not saying thats its the right thing to do but im saying people do do it

It is illegal for Indian residents period! people may get in to trouble one day !
Here is the RBI link

https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=8427&Mode=0

 

[progix]

It is illegal for Indian residents period! people may get in to trouble one day !
Here is the RBI link

https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=8427&Mode=0

I guess you guys are sharing interesting and important discussion however as per my knowledge I think any Indian trader is allowed to trade upto the amount of 15K USD or lower with certain terms and conditions associated with this.

 

[moka2]

I guess you guys are sharing interesting and important discussion however as per my knowledge I think any Indian trader is allowed to trade upto the amount of 15K USD or lower with certain terms and conditions associated with this.

Where do you get this info? any govt website link? if not it is just hear say!

 

[progix]

Its not a gov link but i have gone through this discussion and i think it might be helpful in knowing Indian traders insight.. https://www.quora.com/Why-is-forex-trading-illegal-in-India

 

[moka2]

Its not a gov link but i have gone through this discussion and i think it might be helpful in knowing Indian traders insight.. https://www.quora.com/Why-is-forex-trading-illegal-in-India

First of all this is not official govt link
and secondly it also indicates that
This link clearly shows that it is illegal
Conclusion:
"However if you send money to out of india, to FOREX brokers inorder to trade in any derivatives, Its illegal and liable for imprisonment, fine etc.

Indian residents can trade currency futures on India based exchanges only
I don;t know why you think somehow it is legal for Indian residents!