subject: Find Forex Brokers Who Are Best Regulated For Your Trading [print this page] Picking the right Forex broker for your trading can prove difficult. Among the common items compared when choosing a broker such as sign up offers, spreads, leverage and the supplied trading platform, finding a Forex broker best regulated for your currency trading ought to be one of the top undertakings.
A broker which is regulated has joined a regulatory body. This means that the broker has signed up to a set of rules that will govern the way it is able to operate its business. Regulation membership requires that a regulated Forex broker runs their operation by a certain set of agreed guidelines for their financial operations. These rules will vary slightly between regulators but will generally require a brokerage firm to submit regular fiscal reports in order that their financial dealings can be monitored. This forces the broker to maintain accountability for it's financial activities. This instructs Forex brokers to maintain separate accounts for their own financial capital and that of their traders. Regulatory bodies demand that client trading desposits are held in separate deposit accounts. Here, if the brokerage runs into financial issues, the trader benefits from having their deposits safeguarded.
By following this set of financial guidelines as laid out by the regulator the Forex brokers also gives credibility to the soundness of their activities. This is good for Forex traders. By becoming regulated a broker shows to the client that they are serious about operating in the clients" best interests. The broker will need to adhere to a basic standard of operations when interfacing with the client. This allows a path for arbitration if a client and broker are unable to resolve a dispute.
The inability to comply with the required rules will lead to the Forec broker being penalised by the regulating authority. Penalties are most likely to be in the form of a fine but more severe breaches of policy can results in the termination of membership.
When you are selecting a Forex broker it pays to look for membership of a regulatory authority before making your decision. The actual jurisdiction of the Forex broker is of no consequence as the Forex markets are now truly global. However you should ensure that the broker is a member of it"s local regulatory body.
In many countries, specific authorities have been established to regulated the activities of Forex brokers. Look for membership of the following regulatory bodies: ASIC (Australia), OSC (Canada), MiFiD (European), ARIF CFB SFDF (Switzerland) FSA (UK) and NFA CFTC (US).
Forex brokers will usually provide details of their regulatory membership on their website. Instead you can visit the website of the regulator to investigate further about Forex brokers best regulated for your trading.
