Clearly such statements are written by individuals who, although may have read a lot of financial services literature in their lives, have never had exposure to the way a forex and CFD broker is established and the way the financial backbone of such business functions.
Let’s take it in simple terms. A forex and CFD trading broker who holds a trading license, operates as an ECN trading broker, provides traders with direct market access (DMA) – transacts all client funds directly to banks or other liquidity providers to establish equity. The forex and CFD broker has contracts in place with these institutions so all market transactions (trades) can be executed by the clients (traders). Its worth mentioning that the aforementioned organisations certainly have financial licenses in order to execute market transactions. This is where the clients’ money (Your money) are kept. Those funds are insured and in some cases re-insured. IMGFX is a ECN trading broker and strictly follows this operational methodology.
When you understand the above simple logic, it becomes evident that your money are just as safe with a trusted offshore forex and CFD broker as with any licensed broker. Even compared to those holding licenses from the most renowned financial regulators.