If you are planning to trade currencies, then you can find many forex brokers who are looking to provide you services. In order to make trading easier for you, your brokerage firm will act on your behalf by executing your trades and storing your money in an online account. In light of this, you ought to select a broker you can rely on and entrust with your hard-earned money in order to maximise the profits on your investment.
What Is A Regulated Broker?
Simply put, a broker who is licensed would carry out financial operations, which can be easily tracked and supervised by a local regulatory agency. A regulatory body’s main objective is to stop illegal activity and excessive risk in the market while also raising consumer awareness.
When a brokerage firm has a licence and is regulated, it means that all of its trading activities and business operations are carried out in compliance with the rules, regulations, and norms set forth by the regional regulatory authority. The supervisory agencies also conduct routine checks of licenced brokers.
When a regulated broker disobeys the rules and criteria established by its regulator, the agency may take legal action, which may result in the licence being revoked, but such things are rare to happen.
Important Benefits Of Choosing Regulated Brokers
Trader’s Funds Are Safe And Secure
Regulated brokers keep traders’ funds safe, with most brokers using cold wallets to segregate their own funds from that of their clients. This practice is very useful especially when the broker experiences difficulties and won’t lose their money as a result. Segregated funds of clients will help them withdraw their money easily.
A vast majority of regulated brokers maintain separate books for segregated funds. Doing this makes it easy for them to maintain a record of where the funds are, enabling the fast restoration of clients’ money in the case they are in need of urgent funds.
Transparent Trading Operations
Trading activities that are transparent and honest might be experienced by traders who look for a registered broker. This is because licensed brokers are required by law to treat their clients fairly and without engaging in market manipulation. They must also send regular financial reports to the regulating body; failing to do so could lead to the termination of their membership and notification of traders. To prevent working with a broker that is falsely regulated, you must verify the legitimacy of your possible broker’s licence and their past performance with the regulatory body.
All forex brokers should try to deliver the best assistance and service to their customers, but regulated brokers often go an extra mile to ensure that customers are happy and content with the service they are receiving. Hence, regulated brokers strive to give their clients the best customer service possible. This covers important facets of the trading experience, such as –
- Account creation and funding
- Giving you crucial trade information, such as the spreads and trading platforms accessible, and fixing any technical trading issues you could find on the platform
Fast-paced forex trading may result in losses, especially when you don’t have access to dependable customer care.
Regulation is crucial in ensuring that forex brokers follow the established guidelines and norms and refrain from engaging in unethical behaviour. In order to protect your interests, you should be sure to work with brokers who are regulated and licensed.