Trust - Broker and its regulators?

Recently I been ask by someone which broker I trust and which regulator is better? It then strike me.. Yeah I never did thought about how much I trust a broker or its regulator. The answers to the question was None, I trust no one person or organization that I don't know or don't see. Most offshore broker are just company registered or regulated by another organization located in god know where. All we see is an address and contact number.

Unlike our local banks which we can walk in and talk to someone directly, offshore broker is something of the unknown. The reliability of a broker is only as much as the review of a stranger about their existing or past experience with that organization. Given the fact that we need to deposit money with these unknown organization, it is hard to blindly trust these brokers with your hard earn money. 

Many would argue, but they are regulated by so and so.. My answer would be, aren't bank regulated as well? Some Banks are even backed by a country's government, yet they can crash and burn. So how do we trade if we cant trust our broker. To me this is why there is this term, "Trade only money you are willing to part". 

A lot of people complain about broker cheating their $ or push the price just to hit their stop. I do agree that there are times these would happen, spread are increased price flux from broker to broker. These usually happen during news release. Not that this have happen to me, but this is all the more reason why we do not put all our eggs into one basket, nor do we put our live savings into it.

Having said that, most broker if they are illegitimate are not out to get you. Brokers only make money when you trade. It doesn't care if you lose money or make money. If the put your position into the market, they make their keep through your spread or trade commission. A broker's favorite customer is usually someone who makes little $ but take a lot of entries. This is because every entry you take they are making off your spread. If you crash and burn you stop trading or if your account is too rich you cash out. Hence.. if we trade trade sensibility.. put your stop correctly and be weary of any economy release which would fluctuate price/spread. Never over trade and blame the broker for closing your position. Even the banks comes after you if you default on your loan.. Trade sensibility or don't trade at all. 

Remember.."Trade only money you are willing to part with".. 

-DC