how to choose a reliable Forex broker
batka last edited by
how to choose a reliable Forex broker
Problems with broker regulation depend on where the broker is legally based and which countries it operates in. Since the Forex market is decentralized, there is no single regulatory authority for the entire market. Some countries or regions have stricter regulations.
Many Forex brokers are based in so-called offshore zones, such as the Caribbean Islands or small Pacific Islands. One of the reasons for this location is an attempt to avoid or optimize tax costs, and the second reason is that there are practically no regulatory authorities. Formally, of course, they are there, but in practice they are not.
This means that if a broker cheats and clients suffer any losses because of it, there is little they can do, because it is difficult and very expensive. In addition, these remote locations do not have the human resources to investigate all the problems that arise.
On the other hand, there are Forex brokers that operate in regions where there is strict control and this control becomes even more stringent. These are regions such as the European Union, the United States, the United Kingdom, Cyprus, Australia, Canada, Japan and New Zealand. Brokers that operate under these jurisdictions operate under increased control.
In this case, customers will have an option to contact someone if something goes wrong. However, keep in mind that this does not mean that the broker's work in a strictly regulated area means total security. I traded through Forex brokers located in New Zealand and Cyprus, which canceled my profit and did not allow me to withdraw the Deposit. In a more strictly regulated area, it is less likely that this can happen.
In addition, some of these regulators insist that customer deposits are insured against bankruptcy or loss of funds due to the broker's fault. Usually up to 50,000 units of the base currency are insured, depending on the regulator.
In General, I would recommend that you refrain from working with brokers based in regions with little developed financial market regulation.
jity last edited by
As for the work of brokers, it all depends on the region in which they are registered. Moreover, they are all located in offshore zones. No one wants to pay extra taxes. More interested in what type of withdrawal system they have.
Zurab8 last edited by
Brokers differ in their platforms; they have different obligatory minimum accounts and transaction fees. Before moving to a trading platform, find out how much you would like to invest what commission you are willing to pay and what are your goals
Silva last edited by
There are many Forex brokers in the market of trading services and each has its own zest. Therefore, today we are talking about what it is worth paying attention to first of all and what factors affect only advertising. In general, all brokers are divided into two broad categories: those that attract customers to liquidity providers and receive a percentage of the transaction as profit, and those who trade inside their kitchen.
Nika56 last edited by
The currency market participants include representatives of various levels, such as banks of central and commercial importance, various funds, exchange associations, foreign trade companies, brokers and individuals. Throughout the day around the world, Forex market participants are engaged in transactions using the connected information trading terminal. Thanks to the developed means of communication, it became possible to connect capital around the world into a common system, the main part of which is executed electronically.
Angela last edited by
A broker is an intermediary between an investor and an issuer.
You need to understand that this is an organization that has a license to work in the stock market and which has the right to make transactions with securities for the investor. The presence of a license must be checked independently on the website of the Central Bank of Russia.
In addition, only funds in broker accounts are at risk of loss. Your assets are held in a special depository. And if the broker ceases to operate, you can safely transfer your securities to another.
tadib last edited by
To engage in trading you need to know a lot of features that can affect the course of the transaction. Today, the current currency for trading is cryptocurrency, namely - bitcoin. Bitcoin shows little of a reaction to the publication of the U.S. economy. This is natural, because bitcoin is not the currency of any state and does not play any role in the country's economy. There is nothing super-complex about bitcoin trading. Even newcomers can earn on the purchase - selling bitcoin. What would earn you can use the cryptocurrency exchange BTCBIT - https://btcbit.net/ . This trading platform has a simple interface.