Thread: HotForex Discussion

What new law?
What's the distinction between licensed and registered?

Originally Posted by ;

what new law? What is the difference between licensed and registered?

Check their site, I've also got a newsletter concerning regulation update.
Regarding regiion and regulation I assume there is a substantial difference between both as enrollment is no more than a formal notifiion you're acknowledged by a watchdog and permitted to offer services, while regulation means you are responsible for supplying service in line with this regulator rules and will be fined appropriately in case of violations.
So HF obtained regulation (permit) from South Africa expect their services will enhance also.

From what I know Hotforex is governed by Cysec Cyprous. Probably HF has multiple labs based on the several areas of the clients?
I did not obtained from them any email regarding this, likely because this change do not influence EU clients?
If yes (and could be strange because I did not received any email about this), the change from Cysec regulation (a regulation that honestly I do not like in Any Way, but anyhow a MIFID compliant regulation) to South Africa regulation cannot be considered as a positive entity

Seems strange, cuz when I am broker, I still wish to ship for all customer about my inclusion of license, no matter if it's helpful or not with existed customer. Did you check your junk box?

I guess if this broker has enlarging its operations then it's a fantastic news for us that our broker is worried about their and their customers expansion. Let hope that each trader should find the exact same degree of esteemed services in future by them.

I dont believe its a switch, it may be an additional license/regulation for customers in the southafrican area, the more the marrier. .

Originally Posted by ;

Sounds strange, cuz if I am broker, I wish to send for all client about my addition of permit, no matter if it is helpful or not with enlarged client. Did you check your spam box?

I got their email though I'm not from EU. Anyhow the news are available on their website.
Btw I made a little research on SA financial regulation and it appears quite reliable. Hope they will keep the level of the trading solutions.

There has been signals that Europe will tighten regulation. This could lead to a lousy regulation like CySec in Europe, which untill now is a good spot for bucketshops to sort under, won`t be attractice anymore. Since they need to actually do what they are supposed to do, regulate and balance the relationship between the broker and the client.

If this is to become authentic, we will see alot of brokers running from CySec to offshore regulations. .

Originally Posted by ;

There has been signs that Europe will tighten regulation. This could cause a bad regulation like CySec in Europe, which untill now has been a fantastic spot for bucketshops to form beneath, won`t be as attractice anymore. Since they will need to do what they are supposed to perform, regulate and balance the relationship between the broker and the customer. If that is to be true, we'll see alot of brokers running from CySec to offshore regulations. .

There is no regulator in the world that could eradie shady sophistied methods of forex brokers, because of the bad character of forex (no clearing centre, access limits etc.) Second, I doubt that they will expose themselves in such stupid manner. Better and simpler to accommodate under new rules and restrictions rather than get flagged as a scam broker by changing the regulation. .
My two pennies.

Originally Posted by ;

I dont believe its a change, it could be an added license/regulation for customers in the southafrican area, the more the marrier. .

How many licenses does hotforex have so much? From what I know is FSB and CySec? Any else?