A broker is an intermediary who buys and sells assets on behalf of its investors. Talking specifically about ‘Forex’ or Foreign Exchange, a foreign exchange broker (often called an FX broker or a forex broker) buys and sells currencies on behalf of clients and ensures his compensation by charging a commission for the services rendered. Since foreign exchange is a tricky business to get involved in, it requires an active check upon the markets and trends by accurate analytics and statistics of current market conditions thus, calling the need to get in touch with a Regulated Broker.
A regulated broker is a broker who is under the criterion and regulations of regulatory authorities devoted to protecting the interest of investors and other parties involved to provide a safe and secure trading environment for foreign exchange. Simply,
a regulated forex broker is one who can be held accountable for the transactions made by him/her. Regulated brokers are more authentic and have good access to trading platforms. The toolkit of a regulated broker will be equipped with near to most accurate analytics and statistics of current market conditions and relevant strategies to tap more of the market growth.
You might have heard of the scams of AMarkets, LionsFM, WDC Markets, Royaltd24 for their scams around offshore license possession and no License possession. Well, there are 1000 brokers or firms possessing either no license or offshore license or faking their firm or cloning some big names. These all scams are a result of clever brokers and forms but somewhere more or less of a non-active investor!
Now imagine investing your funds with a broker and hoping for a good return, but the next day, unfortunately, you wake up to know your broker fled away! Or your broker went bankrupt and has used your hard-earned amount to pay off his personal debts! Or your broker has been arrested for tampering with the trading platforms or found manipulating the market prices! Scary?
Thankfully you now have an idea about the Regulated Brokers with whom at least you don’t have to worry about the scary nightmares.
But, having complete authenticity about the Regulated brokers is a must!
A regulated broker will possess a license for trading from the regulatory authority concerned. A regulated broker will also be bound to regulations and legal bindings of the government. Thus, it will become easy for an investor to feel secure with his trading and money. Other means could include the official website of a broker or his firm and a complete study and cross-checks about the performance of the broker. A list of regulated Forex brokers will definitely help you find the best one for your need.
With the threat of frauds and misleadings , arises the need to call for a regulated broker.
Why call for a Regulated Broker?
1) Transparency of functions :
All the functions and operations of a regulated broker will be easy to track in fact a broker with good performance will willingly become more and more transparent with his actions and decisions to fetch him more investors.
2) Legal bindings :
A regulated broker falls under the legal regulations of governments which makes it the least possible to attempt fraud and false transactions with investors. With the proportion to sue the broker into the court, the investor feels more secure about their money and the broker will also provide more attention to contribute to better accuracy of his deals.
3 ) No manipulation of funds :
With a pendulum of rules and regulations from regulatory authorities and governments overhead, the brokers who are regulated won’t try to manipulate the funds of investors and ensure safeguarding platforms for investors.
4) Bindings from the regulatory board :
Brokers who are regulated have a necessity to file their financial report with the regulatory authority in periodic terms.
Failing to the boundations of regulatory authority, the membership of the broker is likely to be terminated which forces the regulated broker to present necessary documents to the regulating authorities.
5) Authenticity :
A regulated broker will always ensure an appropriate work environment equipped with support desk, customer care services with easy access over telephone, mail etc. To fetch more investors and retain the existing ones, If they fail to do so they’re likely to lose their investors and potential investors. A good performance along with the effective address and customer service mechanisms is a must of a well-regulated broker.
6) Safety of client’s fund :
A separate broker account is maintained for the client’s money and funds and under no circumstances the broker can use the investor’s money to finance their own needs. Which provides a very safe environment for the investor to be sure about his funds.
7) Fraud protection :
Safety from frauds is ensured through regulatory norms and legal binding over the parties involved along with this the investor is required to be smart enough to keep a check over their broker since a blink of an eye might cause thunderstorms!
8) Access to trading platforms :
The regulated broker is the bridge between the best trading platforms and investors. Thus in order to survive for a longer run, it is necessary that broker should be aware of the trading platforms from head to toe, platforms with more returns and the period of higher returns.
9 ) Easy navigation:
With a regulated broker aside an investor can easily navigate through deals that are more likely to give a good return, gain knowledge from their broker, formulate better strategies to navigate as and when required.
10 ) Accuracy of the platform :
A good regulated broker will ensure the accuracy of platform with his effective toolkit equipped with more to most accurate analysis and statistics of market and trend study of various platform based on their performance.
11 ) Fast updating network :
With an active and smart regulated broker, an investor will always have a bird eye view of the market since he’ll be updated on a regular and fast basis on how the trend is shifting and emerging.
Thus , there various reasons on why one should go with a regulated broker specially if someone is beginning with their investment in Forex in general.