Benefits of Trading with a Regulated Broker
With high demand for best brokerage firms, regulated brokers started to offer new services and innovate but scam rate goes high too.
That’s why we have reviewed over hundred foreign exchange brokers around the world and evaluated their offers, fees, commissions, portfolio, payment (Withdraw & Deposit), customer support, trading fees, Education, online trading platform, Signals and Research, Account Opening, and many more factors.
Regulated brokers offer peace of mind when you are conducting real-money transactions, trading activity, and sharing sensitive personal information online. The regulatory authorities that license brokers ensure compliance at all times.
Regulated brokers provide recourse in the event of mismanagement, malfeasance, or improper conduct on the part of the broker. They provide protection to clients through the regulatory authority in question. There are 5 primary reasons why you should always trade FX with a regulated broker, including the following:
- Evidence of a Fully Regulated, Licensed and Operational FX Brokerage – your decision to trade Forex online is an important one. It is imperative that you work only with a legal business entity, and one that is subject to the rules and regulations of a government agency or official watchdog authority. The only way to ensure that a company’s fully licensed and regulated to offer real money trading is regulation.
- Recourse in the Event of a Dispute – fly-by-night Forex brokers are difficult, if not impossible to contact. With regulation, there is always a telephone number, email, customer support desk, and real person waiting to assist you. Any claims that you need to file against the broker are infinitely easier when a broker is regulated. As such, any refunds that you are due, money that needs to be paid out etc. can be done through regulated brokers.
- Reputable Trading Platform – Forex trading is predicated on the quality of the trading platform in question. Regulated brokers must run fully licensed software for their traders. Regulation ensures that the software platform meets all requirements.
- The Investor Compensation Fund – the ICF is perhaps the best kept secret of all regulated Forex brokerages. Thanks to CySEC, the Investor Compensation Fund (ICF) is the ideal investor protection mechanism for clients at FX brokerages. The Investor Compensation Fund is a member fund, established along the lines of Article 59 (1) and (2) of LAW 144 (1) 2007.
- It is designed to safeguard the claims of clients against the ICF members through compensation, if preconditions have been met. It is not necessary for clients to be separate citizens, since foreign clients living in Cyprus are also covered. The maximum amount of compensation in the ICF is €20,000 – irrespective of how many accounts are held, or the currency that is used.
- Segregated Accounts – segregated accounts ensure that if a Forex company goes insolvent, the client will not lose his/her investment in the company. This is ironclad with regulated brokerages.