Do brokers receive their customers from IBs and Affiliates? I thought most traders elected to go that route rather than going to the broker directly. Is this wrong?
Do brokers receive their customers from IBs and Affiliates? I thought most traders elected to go that route rather than going to the broker directly. Is this wrong?
I believe you're right that most clients select broker through IBs and there is not anything wrong with this type of connection in its pure form. The main problem is that most of the IBs are not regulated or monitored at all. Which enables a few of these to use a few questionable tactics and quite aggressive marketing egies with guarantees for immediate success and quick money. That info on the other hand attracts newbies who wind up blowing off their accounts very quickly and that partially explains the negative numbers. So, long story short -- I think IBs should remain around but their activity ought to be monitored/restricted somehow or form.Originally Posted by ;
That makes sense. I am based in the United States and my IB told me they're regulated so I assume they are closely tracked by the regulator. It seems other jurisdictions could do the exact same and need introducing brokers to become regulated.
As a related note I have only had positive experiences dealing with my IB.
It is interesting that CySEC of regulators wants to prohibit binary possibilities, because CySEC does not have a standing of a rather strict regulator, unlike the FCA, which recently determined that not only won't they prohibit binary possibilities,https://www.forexbrokerz.com/news/In...binary-options The new law will come into effect on 3rd January 2018.
I guess banning everything is the easiest way to prevent extra work. Best way would of course to controlOriginally Posted by ;
Looks like CySec is becoming serious, good to see they are moving in that direction, After Brexit, we shall all need a solid EU established regulatory body. VERY VERY good that clients can still decide on their own leverage....sure 1:50 is ok for newbies, but good that we can raise it to a high rate....it will kill trading otherwise (!)Originally Posted by ;
CySEC used to get a standing that was somewhat wobbly but they have been working hard to change that. Recently they moved as far as to https://smnweekly.com/2017/04/13/cys...s-advertising/, which banned such commercials.
I believe that it's a good thing that they're hard at work, because they and the FCA are both major European broker regulators, and people have to be able to trust them.