The next question is how to Overseas Brokers. At the time this article was written the development world forex trading in Indonesia especially for online forex trading has already passed through several phases.
The first phase, the introduction of Online Forex Trading in Indonesia at this phase of the online forex trading was introduced by local brokerage firm which provides online forex trading.
The second phase, in addition to local brokerage companies are starting to provide online trading facilities, alternative options for trade with foreign brokers started to appear, with the familiar in Indonesia began a variety of good foreign brokers are legal or illegal
The third phase, forex trading with mini contracts removed in Indonesia so as to local brokerage firm there are only Regular/Standard contract. This led to investors who want to trade with a mini contract choose Transact with Foreign brokers
The condition that exists when this article was written was local broking companies only provide trading facilities to Regular contracts/Standard (where 1 lot = 100.00 or 10 times of the mini contract), and foreign brokers good legal and illegal promotion is still active. And since this article is about the legality of a Foreign Broker then we will focus on the topic of the legality of a Foreign brokerage firm.
Things to note are the Forex brokerage companies abroad are mushrooming and looks very aggressive with provides many benefits and often bonuses, among others
Very low minimum deposit
Bonus $ if the margin is a deposit do
FREE commission
Low spreads
The mechanism of transfer of funds that is easy, via Credit Card, BCA, Liberty Reserve, e-Gold
Well all the advantages of the above sounds interesting and very lucrative for prospective investors, but there are some things that are actually worth a watch
The initial deposit is very low, it is generally regulated by supervisory minimum initial deposit that brokers must reach a certain amount, this is done because the forex trading is a high risk investment so that regulators and supervisory bodies generally specify a certain boundaries because forex trading is not suitable for everyone,especially for those who have very limited funds, the goal is to protect clients also
Margin bonus $ ... So if make a deposit margin of $ ....., it is similar to the practice was at the time this article was written are rife in Indonesia, such as cashback or bonus from the bank if deposit some money in fixed deposit/savings with terms should not be withdrawn for a period of time then you can get direct gifts of cash, mobile phones. The Bank could do so because the actual funds used to provide gifts/cashback is through the calculation of interest will be received in the future. But how to forex brokers? The body of the regulator in favour of investors generally govern the way ship brokerage firm practices and prohibit excessive and misleading promotions. Because of the high risk of forex trading, then the promotion in this way is not allowed because it can affect the potential investors that still lay to immediately open a Real Account, but potential investors should understand the first mechanism and risk of forex Trading. Furthermore we have to worry about is if a broker gives you a certain amount of money when you do a certain value of deposit whereas they do not charge a Commission/transaction costs and very low spread, the question is how they can bear these costs?
The mechanism of transfer of funds that is easy, via Credit Card, BCA, Liberty Reserve,e-Gold. Generally the official broker under the regulator allowed only conduct transactions through the payment method that is legal and clearly its existence such as Credit cards and International Wire transfers while alternative payment methods such as Liberty Reserve, e-Gold is not permitted because it is not an official payment methods not alias was regulated. If the bank or Credit Card then under the supervision of Bank Indonesia as the central bank or the FED (US). However, for alternative payment methods that do not have a regulator who oversees their operational practices so that if at any time they close or cheating then there is no control.
Operational Mode
So what if I'm trading with a broker of illegal, so there are different ' real '? This question often arises from traders who were already trading in illegal brokers, there are some modus operandi generally occur at illegal brokers, because they are not under the supervision of an official regulatory agencies then the following things can happen at any time
Pembandaran: opponents of transaction traders is a company brokers itself, if yourprofit then the brokerage firm losses, if your loss then the brokerage firm profit. Nowthe problem is if you keep ongoing brokerage firms profit and loss, no companymade for continuous loss and here have become like bookies, where the transactionoccurs only between you and all brokerage firms, not by the market.
Funds cannot be withdrawn: due to the above conditions then we will find that when the profit, the funds cannot be/difficult/was compounded for withdrawn because the transaction was not transmitted to the market so that the payment of profit must be done from the bag of a brokerage firm. Will generally appear for various reasons thatthe core fund of profit is hard drawn or they just silence the only request or your complaint.
Anomaly/Weirdness on the trading Platform: when good market system suddenlyfreeze, the order for the taking of profit cannot enter, and various other creativity to obstruct You get the profit. But the special moment for the market crowded/hecticespecially when discharge news system disorders was reasonable to happen becauseof the entry of the order transactions that are very much at the same time
The oversight agency listed on pseudo: pseudo regulator set up by the brokerage firm's own interests instead of the interests of the investor's brokerage firm
The above things are real things that happen if you really find out about the difference between Legal and illegal brokers, we ourselves have often listen to ' vent 'victims who lost funds, transaction profit or non-profit funds eliminated could not bewithdrawn by a variety of reasons, all of which failed to clear the solution plus there is no place for a snitch.
We, in this case educational portal on TDAmeritrade.com as Indonesia also often getvarious offers to cooperate with various brokerage firms, usually accompanied byvarious lure of ease and an enticing offer, but after we did a research background,track record and legality, if the results we found that the results are not satisfactorythen we reject all the bids.
Tips
Well now how tips to choose a good foreign brokers,
Please select only registered Brokers in the country who have supervisory/regulatorset up to interest investors not to interest brokers, among others:
United States
Australia
English
Especially for brokers who are registered in the United States under the supervision ofthe NFA (National Futures Association) and CFTC (Commodity and Futures TradeCommission), the reason is due to become a member of NFA brokers must have aminimum net capital fund of $ 20 million and if there is a complaint of investors andbrokers found guilty could be fined brokers with a nominal $ 100,000, surely it will make those who have funds under the value of such fines is safer , because the value of the fine, and of course the ultimate goal is to prevent a broker to do the practices.
Make sure you know the mechanism to conduct the complaint to the supervisory
0 Response to "The Legality Of Foreign Brokers"
Thanks for give comment.