The broker selection process is quite crucial to your forex trading and should be executed carefully. When it comes to selecting a forex broker, it could get quite difficult if you don’t know the right set of things you should be looking for. Hence, to make things easier for you, here is everything you need to know about regulated and unregulated brokers and flexible leverage in detail. Read More
Who Is A Regulated CFD Broker?
A regulated CFD broker is registered with a country’s top regulatory body. As they are regulated, they are bound to adhere to the rules of the body, making their operations transparent and accountable.
On the other hand, an unregulated CFD broker is not registered or authorized; hence, they are not compelled to follow any rules and act in any manner they like.
What Are The Risks Of Selecting An Unregulated CFD Broker?
If you choose an unregulated broker to deal with, you are basically putting all your money at risk. There is no guarantee the broker will keep your funds safe or just take all your money and disappear! You cannot judge the true intention of the broker because they are not compelled to follow any guidelines; hence, they may or may not act in your best interests. Therefore, the chances of fraud and mistreatment are high when you trade with an unregulated forex broker. Furthermore, a non-regulated forex broker has no responsibility and accountability to abide by professional ethics and privacy policies, meaning you are sharing your private and financial information on the guarantee of the broker’s character, which yet again has no claim.
What is a CFD?
A contract for difference or commonly referred to as CFD, is a type of contract between the buyer and the seller. According to this contract, the buyer must pay the seller the difference between the asset value during the time of the contract and its current value. The best benefit of CFD trading is that it enables you to trade an asset without owning it. This means you are trading the value of the asset but not the asset. CFD trading involves considering the price movement at the entry and exit points. Thus, it does not take into consideration the actual value of the asset.
What Are The Advantages Of Working With A Regulated Forex Broker?
- Regulated By Top Authorities:
The best thing about regulated cryptocurrency brokers is that they are registered. Thus, they need to maintain a specific level when it comes to performance and standards. Furthermore, they comply with all the guidelines that prevent them from making reckless decisions. Regulated forex brokers are at the top of the broker’s list.
- High Level Of Security:
Your money is at stake; hence, it is normal to seek some kind of security from the CFD broker. And for regulated brokers, this surety and security is an obligation. They are required to maintain a separate account for the trader’s funds and never mingle them with the company’s funds. Additionally, every client is individually tracked to keep their money safe. With a regulated broker, it is also easier to withdraw funds whenever you like, making CFD trading much easier and more convenient for you.
- Impeccable Compliance To Rules:
Being regulated means, the forex and CFD broker has to provide a comprehensive list of their employees, including their qualifications, track record and performance. Additionally, the regulations are strict for brokers to follow a client-friendly approach to record-keeping and accounting.
- Excellent Customer Service:
Regulated brokers are accountable for every action they take, and the clients can withdraw their investments whenever they feel like they have been mistreated. Hence, regulated forex brokers are highly motivated to offer exceptional service and cater to their client’s needs efficiently. They provide excellent support right from the beginning when you set up your trading account to resolve technical issues you might face when trading.
- Possibility Of Recourse:
Often traders see that unregulated broker is nowhere to be found when they face an issue. On the other hand, a regulated broker is obligated to maintain a fully-functional customer support desk. Additionally, you can also contact them through call, email and live chat. All in all, a regulated broker tends to address and resolve your problems efficiently and quickly.