To trade Forex we have to go through an intermediary channel here which is the broker. In addition, in many countries in Asia today Forex has not been recognized by law, the state does not allow open brokers. Therefore, if any complaint happens, it will be difficult for you to intervene from the authorities. So finding a reputable Forex broker to open a trading account is extremely important for you to protect yourself from the trouble encountered later. Today, we will learn about the regulation protection and benefits.
Currently, there are many expansive Forex trading platforms around the world. That is why it is not easy to choose a reputable Forex trading platform that makes it difficult for many Traders, especially newcomers. So, which criteria are used to evaluate the best Forex market today? Which Forex trading broker should we choose? Come with me to find the answer.
Regulation protection and benefits for traders and brokers
In fact, it is difficult to set specific criteria because this depends not only on the trading broker but also on the trading purposes of each Trader.
- Many Traders prefer brokers with low spreads to surf,
- Some traders choose ECN Forex brokers only charge commision for trading
- Or, many traders prefer high leverage brokers, or withdraw money as quickly as possible
Therefore, if you want to evaluate a reputable Forex broker, it no longer depends on the trading style of each Trader. Here are some criteria you can apply when studying about Forex trading broker:
- Legal standards of prestigious financial institutions (NFA, ASIC, FCA, CySEC, FSC ..)
- broker has at least 10 years of operation history
- Prestigious Forex broker must have a beautiful and professional Website
- Reasonable transaction fee (commision) / price difference (Spread)
- Good customer care
- Convenient and fast deposit and withdrawal, payment gateway
- Wide spread, low price on news time
- Diverse trading platform, popular and easy to use
Leading Legal Institutions in Monitoring the Performance of Forex brokers
This is one of the important criteria to evaluate a reputable Forex broker. According to the law, when established, the Forex broker must have a place of protection, take legal responsibility, so that when there is any dispute between the Forex broker and the trader. Especially when the broker runs away, holds money, it is these legal agencies that will stand out to resolve the dispute. Therefore, if the Forex broker is licensed by reputable organizations operating in the market for a long time, it will be difficult to “do it” and is the best guarantee for you to choose the broker.
Listed below are some of the legal institutions of the Forex trading platform
- NFA (National Futures Association) of America
- ASIC (Australian Securities and Investments Commission) of Australia
- Financial Conduct Authority (FCA) of the UK
- CySEC (Cyprus Securities and Exchange Commission) of Cyprus
- FSC (Financial Services) British Virgin Islands
Experience in Forex Trading
The Forex market is potentially risky for those who do not have the knowledge. Before entering the market, you need to cultivate yourself a sufficiently large amount of knowledge to minimize unnecessary risks and losses. You need to find yourself a guide, guide you, support you, help you understand the nature of the market.
In conclusion, it is very important to trade with a regulated forex broker because of the regulation protection and benefits.