It’s a known fact the forex market is the most liquid market worldwide, whose value is measured in quadrillions and where routine trading volumes could go as high as 6.6 trillion dollars. By choosing a regulated broker that offers competitive spreads, you can access a wide range of opportunities and make profits. Forex is indeed lucrative and exciting, but selecting the right broker might be a little challenging as there are endless options available in the market. Read More
When choosing a forex broker, commissions and spreads should not be your only considerations; you also need to ensure that the broker is properly regulated. The significance of selecting the right broker by reading the forex broker review cannot be underestimated as it governs whether your trading funds would be kept safe or exposed to risks. Therefore, it is vital to choose a regulated broker as his activities are constantly monitored and controlled by a regulator to prevent any fraudulent activities. Here are the top reasons to select a regulated broker for trading currencies:
5 Key Benefits Of Regulated Forex Brokers:
1. Regulated By A Top Authority:
Most forex brokers are regulated by top authorities whose primary objective is to regulate the behavior of forex brokers and to keep forex traders safe and allow them to trade with peace of mind. Regulated brokers are required to keep the traders’ money separate from their business money so that the traders don’t suffer if the broker goes into liquidation. Regulators often take measures to enhance the financial stability of the brokers while ensuring clients’ money is never used for any broker’s business purpose.
2. Keeps Traders’ Funds Safe And Secure:
As a trader, the last thing you would want is to put your investment money at risk. Therefore, to prevent that, it is best that you choose a regulated broker because it is one of the requirements for a licensed broker to keep the client’s funds segregated from that of business funds. This ensures that clients can easily withdraw their money and will not lose their hard-earned cash in any event despite how hard a time the broker is facing. Moreover, the clients always have the opportunity to check where their funds are. Thus, they can request a prompt return in case of liquidation.
3. High Credibility And Adherence To Guidelines:
A regulated broker can only hire those employees in his firm who are fully qualified to operate in the money market. Additionally, they are required to present a list of their employees along with their qualifications to the regulated authority. Additionally, they must provide information regarding the types of trading instruments they offer, including stocks, commodities, forex, indices and more.
In addition to this, because of the strict guidelines, regulated brokers also have to follow adequate accounting and bookkeeping practices to ensure that the business transactions never overlap with the clients’ funds at any movement.
4. Transparent And Honest Trading Operations:
When choosing a broker, it is vital to ensure he maintains transparency in his operations. This means that he should be able to execute transparent trades while offering a comprehensive range of commissions and trading spreads. A regulated broker maintains transparency in the business practices and never misleads potential clients and traders through their claims and offers.
5. Excellent Customer Support:
While all forex brokers strive to provide the best service to their clients, not every one of them can stick to their word. However, regulated brokers are highly motivated and ensure their clients are happy and satisfied with the services being provided to them. Whenever a clash happens between the broker and trader, the regulatory body comes forward to resolve the dispute.
Regulated brokers aspire to offer a superior trading experience to their clients by helping them with the following:
- Setting up and funding of your trading account
- Resolving technical glitches that you might encounter on the trading platform
- Offering you relevant trading information regarding spreads and trading platforms
Since forex trading is fast-paced, you need high-quality customer support at all times to get the best out of your trading activity. If the broker cannot offer you the same, it could cost you significant time and money. Thankfully, by choosing a regulated broker that offers 24*7 customer support, you can avoid this situation and get a smoother and better trading experience.