Is Your Forex Broker Regulated ?
Forex market is bigger than any other trading market of the world, Forex Trading activities are more than trading activities of any other market and so the brokers of Forex market are also more than the brokers of any other trading market of the world. You can find hundreds of Forex brokers on the Internet. Do you like to select any broker providing brokerage services? Surely not because you will like to check their offers, features, trading platform used by them and terms and conditions etc. Forex Brokers have to face high competition in their field so they try to be competitive.
To face a tough competition, many of the Forex brokers may have different attractive offers, attractive features, excellent trading platform with acceptable terms and conditions and all these will make your decision more difficult and time consuming. So what should be the most important factor that you must look before registering with a Forex Broker? The answer is check if the Broker is regulated or not. A Regulated Forex Broker should be given more consideration. Now with this term, “The Regulated Forex Broker”, few more questions comes to our mind. Who is a Regulated Forex Broker? What the Regulated Forex Broker does? Why more importance should be given to the Regulated Forex Brokers?
As the name itself says that the Regulated Forex Broker is a Broker who is monitored by some superior regulatory authority. The Regulated Forex Brokers also provide brokerage services like all other brokers but with more trust. You should give more importance to the Regulated Forex Brokers because the activities of the Regulated Brokers are monitored by a superior authority. The Regulated Forex Brokers are bound to provide the services committed because in case failing to provide the committed services they will have to answer the superior authority. The Regulated Forex Brokers also need to submit their financial reports to the higher authority and if they fail to do so then the authority can cancel their license.
In a survey, it was found that more than 20% of the traders and investors don’t know whether they trade with a Regulated Broker or not and some of them are not aware about the Regulation of the Brokers. If those traders are asked that their Broker is regulated or not then their questions might be something like below.
Who is the Regulated Forex Broker?
What the Regulated Forex Broker does?
What is the difference between the regulated and non – regulated?
Why to think about it?
It is a disappointing fact but true that many traders and investors don’t care if their Broker is Regulated or not. Registering with the Broker who is not regulated by any authority means that you are risking all your money without any security. So do trading only with the Regulated Forex Brokers. How to find the Regulated Forex Brokers? Follow some steps below to find the Regulated Forex Brokers.
First step is to locate the country of the Forex Broker. A good Broker will provide their full address on their website so you could know their country from their website and if the address is not provided on the website then it is better for you not to trust that Broker.
Second step is to check the regulations of the country located. Forex Regulations differ from country to country. In some countries, the regulations may be more flexible as compared to the other countries. As a trader, you should prefer to select a Broker from that country only where a Regulatory Agency is there to monitor the activities of the Forex Brokers.