What’s the deal with Roboforex plz? Safe to use or one of the crooks? It’s the ECN account and generous leverage of 1:500 Im interested in.

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[James BarraModerator DayTrading.com Team]

Hi Del,

Check out our review of RoboForex. We scored it 3/5 for ‘Regulation & Trust’:

It’s a legitimate company with over 15 years in the industry and safeguards like negative balance protection (so you can’t lose more than your initial investment) and segregated client accounts (protecting your funds from company misuse).

However, RoboForex is based offshore and registered with the International Financial Services Commission (IFSC) in Belize. This allows it to offer high leverage (dangerous for inexperienced traders) but you may not get access to investor compensation in the event of brokerage insolvency and you should expect limited legal protections and recourse channels in the event of disputes.

That’s why we generally suggest traders use brokers regulated by trusted financial bodies.

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[Del]

Cheers but what are you saying here? Is it safe to use or not?

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[James BarraModerator DayTrading.com Team]

Hi Del,

I’m saying RobForex is a legitimate company but brokers authorized by more respected regulators (eg the FCA in the UK and the ASIC in Australia) are generally safer.

You still risk losing any money you invest but tightly-regulated brokers typically offer stronger safeguards, eg access to investor compensation in the event of broker insolvency and lower leverage limits to protect against huge losses.

 

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[Del]

Ok bro thanks

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