Regulated forex brokers are always better than none regulated ones. Why is that? To be regulated, forex brokers must meet a certain number of standards made by regulators. Those regulators are trusted and well-known financial organizations all over the world. Each country will have one or more regulations. If a broker acquire a regulation of a country, traders there can trade safely because they are protected by that regulation. Therefore, knowing that your brokers are regulated forex brokers is very important.
Regulations of a suitable forex broker
It is believed that United state of America is famous for its best services and highest product quality, which attracts many investors or businessmen from all over the world, including forex traders as well as brokers. As a result, it could be understanding that most traders prefer the regulations in US, rather than in UK, AU,…
In fact, the regulations in US UK are significant and regulated brokers in this area are great, too. It is also hard to obtain any licenses of US UK and this makes brokers more qualified and skillful once they acquire these regulations. For this reason, their service quality, techniques, financial health and management systems must be excellent.
Choose your regulated forex brokers
Although the regulations in US UK are great, it is not necessary for all brokers to acquire these licenses as this is not their targeted market. Instead, they could focus on their most suitable countries and just by serving those, they could become the large forex brokers like Exness. After years joining in Asia, the second biggest forex market in the world, Exness has become the largest retail forex broker with nearly $400 billion of trading volume last month which 99% of this came from Asia. Apparently, they don’t have to acquire US UK licenses.
Due to the difficult conditions to obtain US UK licenses, regulated brokers from this area, of course, have their spreads and commissions much more higher than any other brokers in the world. Thus, it is highly recommended for Asian and African traders that they should not necessarily work with brokers in US UK. (For more information about the disadvantages of US regulations, please read here).
In short, regulations are significant. If your country has regulations, it should be the brokers who could acquire these regulations that you work with. Yet, if your country doesn’t have any, it is no use in working with brokers though they have many licenses. As you are not guaranteed or protected in this case, you ought to trade with brokers which have at least 1 regulations from whether US, UK,… These are all reliable regulations.
Your regulated forex brokers should be in the top largest ones
“Why should it be the largest forex broker?” It may be said that the largest shops or cinemas, which have crowded customers and spacious places, often provide better service quality and more qualified products. The same with forex brokerage, the largest brokers mean the best services and quality, which are really attractive to any forex traders. It is only after many years striving and dedicating that a broker can become bigger and larger. They have gradually gained the trusts from customers and consolidated their position as well as the reputation.
Therefore, the largest brokers could assure the best for traders. Nevertheless, it is still necessary to spend 1-2 weeks checking if a broker is credible or not. It takes more than months to know if there are any problems with a broker as they rarely occur at the beginning. Beside testing by yourself, collecting information and reviews from other traders is a good way to rate a broker. Of course, it should be in the top largest forex brokers.
However, not many large forex brokers are all suitable for you. It may depend on your finance, strategies or purposes that you could make your final decisions.
– A gambler trades with his luck. He often bets all-in when he believes his forecast. He definitely chooses the broker with high leverage.
– A scalper prefers the instant and regular trading. He would like the broker which has low spreads/commissions and high quality executions.
– A long-term trader wants a stable and permanent benefit. He is likely to keep the positions for months. He likes the brokers which are trustworthy and have low swap.
– Some countries have some problems with the payment system. Thus, a wise trader would work with a broker whose policy is flexible for deposit/ withdrawal by local payment systems.
Below are some brief advices:
Register 3 accounts at 3 largest forex broker. Deposit $100 at each then have a test by yourself. Start trading for 1 month. Obtain the profits and compare among the brokers, the one which provides the most profit is the most suitable.
Below is top 5 biggest forex brokers
- Exness.com: $400 Billions/month
- Forex.com: $300 Billions/Month
- XM.com $290 Billions/Month.
- Saxobank: $265 Billion/Month
- Hotforex.com $209 Billions/month.
Your regulated forex brokers should have offices in your country
It would be safe and convenient if the largest forex brokers have offices in your country, which is also the most suitable for you. In fact, before running a business or joining in the market, a broker has researched things carefully. It provides competitive services, products and conditions to possess its targeted market. Once it becomes more famous, it would be easy to open more offices in the country that it is serving.
Asia, however, is one of the most difficult regions to open offices in forex business. A broker has to register the company, licenses and follow the law of the country in which it is working. As a result, it is safer to work with regulated and legal forex brokers. Traders are protected from scams, cheats and risks. Nevertheless, it is not true that a broker who doesn’t have office in your country is not reliable. As it may qualify the trusted regulations from US, UK, AU, JP, Hong Kong, Singapore, you could still work with it safely and conveniently.
Payment system of Your regulated forex brokers
A suitable forex broker should have fast and unlimited payment system. These 2 standards can suggest which broker is more flexible with the payment policy. Good payment system brings the most satisfaction for those who usually have to deposit/ withdraw. Payment system can also indicate the financial health of a broker. Some brokers don’t have enough available money for traders to perform the transactions, deposit and withdrawal. Sometimes, your money is kept for too long that it could be lost. Thus, remember not to trade with these brokers when you see the bad signs.
Here are some standards for a good payment system:
- Fast deposit and withdrawal system.
- High minimum withdrawal limitations.
- Low or zero fee for deposit and withdrawal.
- Local payments.
Exness is believed to have the best payment system among the brokers. It has quick and instant transactions. It also allows to obtain the money in a short time and withdraw on the weekends. There are many free and instant local payment systems, too.
Your regulated forex brokers must be rated well and has no scam claimed
In common, a suitable forex broker must be rated well and has no scam or cheat reported after 10 years in operation. It is thought that a broker could face many problems during 10 years and prove its service quality and abilities. The fact is that forex market could be influenced by some big annual economic news and we could see how a broker treats its clients through the rough time. As you can see the table below, this is the damage from the event in 2015 when Swiss Central Bank floated its CHF. The CFH/USD changed over 3000 pips. An enormous number of brokers and traders lost hundred million dollars.
Below is the top regulated forex brokers for traders to choose
- Saxo bank
- IG Group
In conclusion, when choosing brokers to start trading, make sure you choose those regulated forex brokers.
Synthesized by top4forexbrokers.net