Why are Best Forex Brokers Regulated?
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Over the past decade, forex trading has increased leaps and bounds, witnessing a tremendous increase in retail traders. The forex market is open 24 hours a day, six days a week, an aspect which gives the traders flexibility of trading as they wish and hence resulting in the increasing numbers.
3
Payment methods
Trading platforms
Regulated by
Support
Min.Deposit
Leverage max
Currency Pairs
Classification
Mobile App
Min.Deposit
$100
Spread min.
Variables pips
Leverage max
100
Currency Pairs
40
Trading platforms
Funding Methods
Regulated by
FCA
What you can trade
Forex
Indices
Actions
Cryptocurrencies
Raw Materials
Average spread
EUR/GBP
-
EUR/USD
-
EUR/JPY
0.3
EUR/CHF
0.2
GBP/USD
0.0
GBP/JPY
0.1
GBP/CHF
0.3
USD/JPY
0.0
USD/CHF
0.2
CHF/JPY
0.3
Additional Fee
Continuous rate
Variables
Conversión
Variables pips
Regulation
Yes
FCA
No
CYSEC
No
ASIC
No
CFTC
No
NFA
No
BAFIN
No
CMA
No
SCB
No
DFSA
No
CBFSAI
No
BVIFSC
No
FSCA
No
FSA
No
FFAJ
No
ADGM
No
FRSA
71% of retail investor accounts lose money when trading CFDs with this provider.
Min.Deposit
$100
Spread min.
- pips
Leverage max
400
Currency Pairs
50
Trading platforms
Funding Methods
Regulated by
CYSECASICCBFSAIBVIFSCFSCAFSAFFAJADGMFRSA
What you can trade
Forex
Indices
Actions
Cryptocurrencies
Raw Materials
Etfs
Average spread
EUR/GBP
1
EUR/USD
0.9
EUR/JPY
1
EUR/CHF
1
GBP/USD
1
GBP/JPY
1
GBP/CHF
1
USD/JPY
1
USD/CHF
1
CHF/JPY
1
Additional Fee
Continuous rate
-
Conversión
- pips
Regulation
No
FCA
Yes
CYSEC
Yes
ASIC
No
CFTC
No
NFA
No
BAFIN
No
CMA
No
SCB
No
DFSA
Yes
CBFSAI
Yes
BVIFSC
Yes
FSCA
Yes
FSA
Yes
FFAJ
Yes
ADGM
Yes
FRSA
71% of retail investor accounts lose money when trading CFDs with this provider.
Min.Deposit
$50
Spread min.
- pips
Leverage max
500
Currency Pairs
40
Trading platforms
Funding Methods
What you can trade
Forex
Indices
Actions
Raw Materials
Average spread
EUR/GBP
-
EUR/USD
-
EUR/JPY
-
EUR/CHF
-
GBP/USD
-
GBP/JPY
-
GBP/CHF
-
USD/JPY
-
USD/CHF
-
CHF/JPY
-
Additional Fee
Continuous rate
-
Conversión
- pips
Regulation
No
FCA
No
CYSEC
No
ASIC
No
CFTC
No
NFA
No
BAFIN
No
CMA
No
SCB
No
DFSA
No
CBFSAI
No
BVIFSC
No
FSCA
No
FSA
No
FFAJ
No
ADGM
No
FRSA
71% of retail investor accounts lose money when trading CFDs with this provider.
As retail numbers increase, so does the number of forex brokers. A broker is responsible for handling all the transactions of a trader. For a trader, choosing the best broker is the first step to becoming successful in the forex market.
However, not all brokers are what they promise to be. As the broker numbers increase, cases of scams and frauds also increase. Therefore, the best broker has to be regulated to safeguard the traders’ hard-earned money.
So, why do brokers need to be regulated?
- Credibility
Several agencies are responsible for regulating the forex brokers, which in return adds credibility. As the brokers hold the traders’ money and handle the transactions, a lot is expected from them and hence has to hand over copies of the regular audit report to their regulatory body.
Brokers have to follow to the point the rules put in place by regulators, and if the broker is on the body list of the broker, then all the requirements have been met. Such a broker is reliable, trustworthy, and credible.
- It Shows Transparency
Forex trading involves some huge investments and some sensitive information provided. Therefore, choosing a broker who’s not regulated is exposing you to being scammed as it shows that they have something to hide.
Transparency in any business is very significant as regulated brokers show that they have nothing to hide from their clients. Regulated brokers have the best practices as well as provide secure means of trading for clients.
- Assurance for Compensation
Losing money is not the best feeling one has to feel at some point in life. But the assurance of getting your money back is the best a forex trader can have after losing some money. As much as in forex trading their no guarantee of the money back, a regulated broker gives some peace of mind of getting at least the money back.
Even if a brokerage firm closes, a regulated broker is an assurance of the money not getting lost. Perhaps, it gives hope that a trader’s finances and personal data are in the safe hands.
- The Financial Instruments By the Broker are Monitored
A regulatory body monitors legal, transactions as well as the security of the forex broker. Besides, they also check the financial instruments a broker offers. Therefore, it means that a regulated broker will not provide financial instruments that are not recommended for trading.
All the products a regulated broker offers means that they have been approved; hence, a trader gets better services, which most probably are in line with the trading strategy you employ.
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Conclusion
It’s a no brainer that any forex trader should transact only with a regulated broker. A regulated broker guarantees not only the safety of the money but also the security of personal data.
Moreover, they can be reliable and trustworthy. Therefore, ensure you check the broker’s website for any indications of being regulated. You can also google the license number to crosscheck if it’s genuine before committing with them.