Can a fair and honest broker become bankrupt??
 

Let's imagine that there are some broker that always hold their words, very fair, and honest. Can they become bankrupt??
explain please..

Re: Can a fair and honest broker become bankrupt??
 

In most cases, I think, it would be very impossible to a fair and honest broker to become bankrupt. If a certain broker is like the one that being mentioned, good things will happen to this firm. It will attract more sign ups and clients then. The more sign ups, the better and the more money for this particular broker.

Re: Can a fair and honest broker become bankrupt??
 

Market makers: Yes, if they dont have enough customers coming to their artificially created market. After all their business model is to have a closed in environment. Since they are not passing your order to the real market there may be a chance of them going out of business due to their customers losing their account.

ECN: Not likely, Their business model is to take a small percentage from orders passed on to the real market with buyer side and seller side. It is in their interest to have winning clients. If the clients dont keep winning and buying lots then they cannot continue to get their small percentage.

Re: Can a fair and honest broker become bankrupt??
 

there are very feeble chances as they are already charging brokerages for trading and there pretty good as there are thousands of transaction take place.

Re: Can a fair and honest broker become bankrupt??
 

You are right sir,, i think that the fair broker will be more exist and more famous in the world. All trader will more interest in.

Re: Can a fair and honest broker become bankrupt??
 

There is no relation between being fair and being bankrupt, most of the brokers get bankrupt due to their wrong policies and not because they are fair.

Re: Can a fair and honest broker become bankrupt??
 

i think broker can't bankrupt. they can offer to you 100% bonus i pay for you comission. but they always has profit with postion of trader. they always has spread. this is big imcome of them. as my broker is mayzus. they give your high bonus, high prize with demo contest, when you have friend with your affiliate. they can't bankrupt becuase when you bing more client they have m ore profit.
you can ok about it.

Re: Can a fair and honest broker become bankrupt??
 

I think so..
you are right sir,
There are many broker that collapse and sold their company stock to others businessman.

Re: Can a fair and honest broker become bankrupt??
 

no i dont think so, a good broker will always have good policies to manage and getting bankrupt wont be that easy.

Re: Can a fair and honest broker become bankrupt??
 

chances are there. if market react like the snb announcement that happened on january 2015, it can go bankrupt

Re: Can a fair and honest broker become bankrupt??
 

I am not interested to continue any other business besides Forex. Because, it is enough income source for my trading life. For making more money by Forex I have chosen GCI Financial where I got 20% welcome bonus that makes my trading balance larger. So, I am able to trade in a high lot. Therefore, I am getting 4% interest monthly in my trading account.

Re: Can a fair and honest broker become bankrupt??
 

If they are as honest as you say they will tell their customers about that. If not they are not honest so will show signs and changes which are not good. Either way you will be able to identify such brokers.

Re: Can a fair and honest broker become bankrupt??
 

I think it is hard to tell which broker will go bankrupt as many brokers turned into scam in the past and stopped paying their traders. It is good idea to choose a reputed broker but i guess we should keep the necessary capital with our broker and the profits should be withdrawn regularly.

Re: Can a fair and honest broker become bankrupt??
 

It's rare, so you don't need to worry about this. FreshForex has been operating its business for more than 20 years, and they are regulated, so there is nothing to fear.

Re: Can a fair and honest broker become bankrupt??
 

Yes i guess we already have some bad examples of the past where even good paying brokers turned into scam and stop paying their traders. Not sure if the traders got their money back so far but i guess we should keep withdrawing our profits leaving necessary capital with the broker in order to stay on the safe side.

Re: Can a fair and honest broker become bankrupt??
 

Yes, a fair and honest broker can become bankrupt due to a variety of factors beyond their control, such as financial market volatility, economic downturns, or unforeseen events such as natural disasters or pandemics. Even the most reputable and well-regulated brokers can be affected by market conditions or other factors that impact their financial stability.

However it's very unlikely for such brokers as Hotforex as they have very sound risk management syste, tested by years of market volatility.