The Role of a Regulated Forex Broker

Forex (FX) market is the most liquid market in the world. It’s decentralized and there is no central agency to administer. Trading with a regulated broker is a necessity, traders can’t underestimate the relevance of a FX broker being regulated by a certified authority. There are many independent and government bodies to supervise the functioning of the FX market. These agencies provide brokers the license and act as watchdogs. The primary obligation of the regulatory bodies is to entrust the economic strength of brokers and the integrity towards traders. The leading regulatory bodies include Commodity Futures Trading Commission (CFTC), Europe-Financial Services Authority (FSA UK), US-National Futures Association (NFA), Cyprus Securities and Exchange Commission (CySEC) and Financial Services Authority (FSA).

The Role of a Regulated Forex Broker



Forex (FX) market is the most liquid market in the world. It’s decentralized and there is no central agency to administer. Trading with a regulated broker is a necessity, traders can’t underestimate the relevance of a FX broker being regulated by a certified authority. There are many independent and government bodies to supervise the functioning of the FX market. These agencies provide brokers the license and act as watchdogs. The primary obligation of the regulatory bodies is to entrust the economic strength of brokers and the integrity towards traders. The leading regulatory bodies include Commodity Futures Trading Commission (CFTC), Europe-Financial Services Authority (FSA UK), US-National Futures Association (NFA), Cyprus Securities and Exchange Commission (CySEC) and Financial Services Authority (FSA).



Legal Protection

If you want to trade financial instruments, it’s important for you to opt a regulated FX broker. But why? The best reason is to safeguard yourself through legal oversight. Regulated brokers are subject to definite terms of operation. They have to comply with the rules and regulations set by financial regulatory authorities. These brokers should offer you high-quality products and fair market prices to uphold their status. A regulated FX broker not only follows FX guidelines but also provides safety, security and reliability. There are a few brokers who provide high bonuses to gain the attention of new customers. Such bonuses have no meaning if you can’t cash your profits.



Reliability

Regulated Forex brokers have several years of industry experience and are trustworthy. As they are administered by the regulatory authority of their country of origin, they don’t employ unethical business practices to enhance their profits. They are also subject to recurrent reviews and audits, which enforce them maintain industry standards. You can easily and quickly withdraw money from your trading account, which is one of the biggest advantages of trading with a regulated broker. Cash withdrawals from your account can be complicated if you trade with unregulated brokers.



Fund Security

Many brokers offer attractive schemes and bonuses to attract the unexploited market. Such brokers are typically unregulated and may not return the investment. Brokers who follow the Forex regulations have to keep sufficient funds to execute and complete contracts. Also, they shouldn’t use their client’s funds to clear their debts. Not all foreign exchange brokers are regulated by an independent or a government agency. Hence, it is important that you check the history of the broker before investing. Make sure the broker you approach has a financial license to trade the FX market. Also, they should have a strong financial history and better customer management capabilities.



FXPRL, a world’s leader in FX trading and liquidity solutions, gives you real-life insights to be a successful trader. If you’re willing to trade currency pairs, futures, options, bonds, equities, commodities, NDFs or stocks, drop your inquiries at sales@fxprl.com to enable our experts directly consult you. You can also visit our website www.fxprl.com for more details.


By: Pearl Capital Markets

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Source: http://www.articledirectoryusa.com/article/category/finance/currency-trading/the-role-of-a-regulated-forex-broker/

Submitted On Jun 17, 2016. Viewed 132 times.

LAkkappa k
Senior content writer working with Pearl Capital Markets Limited specialised in finance & marketing.

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