Apr 26 2018 05:27
Hi Jhon Travor
For traders who are looking for the security of funds, it is necessary to choose a broker that has a good regulatory and track record as a trading partner, as well as choosing a broker that provides insurance for customers' funds.
So if there are things that happen to the broker, such as bankruptcy/bankruptcy, the regulatory body will be responsible for customer funds, in addition to other financial institutions such as insurance companies that work with the broker concerned.
Apr 27 2018 07:29
For top regulations such as FCA and US regulations, I already believe because they are proven to be credible in handling client problems related to this bankrupt broker. But are there any examples of cases of bankrupt brokers whose regulations are in offshore countries? If there is, I also want to know how regulatory agencies handle clients
Apr 29 2018 05:35
I don't really know who was the first to promote offshore countries. What is clear is that every regulation or country has a legal order and regulations for every problem that occurs in the country concerned.
Apr 30 2018 09:33
Hi Jhon Trevor,
If you trade at a broker that is regulated by an internationally credible regulatory body (CFTC, NFA, FCA, FSA, FINMA, MiFID, ASIC, and FMA). Then if the broker goes bankrupt, your remaining funds will be returned by the broker, but the payback period will be not as fast as the withdrawal process because the legal settlement process between the broker and regulatory agencies takes time.
It should be noted that in a bonafide regulated broker, customer funds will be kept in a segregated account. Besides that, the broker also provides a security deposit before getting regulation from the regulatory body.
About the way to request a withdrawal of funds (withdrawal) to the regulatory agency.
Usually, there will be a notification regarding the procedure. The regulatory body will fully assist in completing the withdrawal of customer funds. For example, during the 2015 SNBomb incident, the New Zealand FMA-regulated broker Excel Markets and the Japanese Alpari broker declared bankruptcy, but their customers were still able to withdraw their funds. So for the safety of your funds, we recommend trading at a broker that has been regulated by this internationally credible regulatory body.
