How to Choose a Regulated Forex Broker

If you’re thinking about investing some money in foreign currency exchange, you must find yourself a well-regulated Forex broker. Why? Simply because you’re putting your hard-earned money into an extremely volatile industry where just about anything can happen. You don’t want to be one of the people whose investment portfolio was wiped out simply because their broker made a mistake. That’s why you should always seek regulated forex brokers with zar accounts.

Security of investment If you think about it, this is probably the number one reason why we need a regulated broker in the first place: security of investment. A fully regulated Forex trader always keeps client funds in separate accounts in top-tier banks with high-security measures.

The whole process itself is routinely audited by an independent regulatory body. Other measures like providing negative balance protection, diversifying clients’ capital, Investor Compensation Fund, encryption protocols of all of the transactions, and a variety of other features are also being offered by regulated Forex brokers.

Loss control Another reason why forex trading is ideal for regulated brokers is losing control. With unregulated brokers, there’s virtually no way to set up effective loss control. This is because they will be the ones who end up losing money – after all, who’s going to prevent them from making a rookie mistake or even getting duped again? You certainly won’t. In regulated forex trading, you have absolute control over what happens to your capital.

The liquidity factor Last, but certainly not least, would be the liquidity factor. When you trade on the forex market, you must be able to easily identify buyers and sellers. The liquidity issue in regulated forex brokers stems from how these brokers are regulated by government agencies. Government regulators are tasked with protecting the liquidity of the market, as well as making sure that the market remains free from insider trading.

In other words, if a regulated forex broker is offering you a good trading platform, you can be sure that it will be easy for you to work with and that you’ll be able to execute your trades easily and swiftly. To get a feel for the kind of services a broker offers, you should go ahead and register with such a service.

Just make sure you know about the kind of trading platform it provides so that you can find out whether it meets your requirements or not. Also check out the demo account that the broker will provide you with, to get a hands-on feel for the system itself. This demo account will let you do some practice trades so that you can assess whether or not the platform is as reliable as it promises.

Lastly, you need to check out the regulatory body that your broker is registered with. You need to ascertain that the firm has been authorized by the proper government agency to trade in the foreign exchange market. The most common body to register under is the Commodity Futures Trading Commission (CFTC) because it oversees a great deal of the trading on the forex market. You can contact the CFTC by phone to find out more.