If you are ready to get into Forex trading, you will want to choose a forex broker that you can trust and one that is reliable along with a slew of other aspects. Here’s how to choose your Forex broker
When you begin your search you will find there are several fx brokers on the market but you may not realize how to distinguish the good ones from the bad ones.
The first thing you will want to ensure is that your FX broker is secure. The best way to do this is to learn if they have registered with a regulatory authority. If you are in the United States, the broker should be registered as Futures Commission Merchant and has a Commodity Future Trading Commission as well as being a member of the National Futures Association. This will protect traders from illegal trading, manipulation, and fraud.
Foreign exchange controls such things as the ban of using foreign currency within a specific country, ban locals from having any foreign currency, restrict the exchange of currency to exchangers that have been approved by the government, can fix the rates of exchange, and restrict the amount of currency that can be exported or imported.
The controls of Foreign exchange come in different forms of control that are implemented by the government on the sale or purchase of foreign currencies by residents of their country or even by nonresidents. You should learn before giving your money to a broker which regulatory body will be caring for your funds. In the United States, it should be the Commodity Futures Trading Commission and the National Futures Association if you are exchanging foreign currency and using a broker.
In the United States, the broker has to be licensed and registered with the Commodity Futures Trading Commission and the National Futures Association.
In Europe, there are several regulatory bodies that oversee the transactions in forex trading but it is dependent on the country that you are trading in and exchanging with.
In the United Kingdom, the regulatory rules are under the authority of the Financial Services Authority.
In Italy, the one in charge of forex trading is the Commissione Nazionale per le Societ e la Borsa.
In France, brokers must be licensed and monitored via the Autorit de Contrle Prudentiel of the Banque de Franceis.
So now, that you know you need to learn a bit more about the regulations and laws regarding the security of your money and how the brokers need to follow licensing or regulations, you should at least feel a little safer.