Regulated Forex Brokers - Your first major decision Currency

Regulated Forex Brokers - Your first major decision Currency

Choosing Forex broker is a difficult decision to make. Most of them have different characteristics, opportunities, weaknesses and strengths. But the first question that should come into your mind should be - "Is it regulated Forex broker?"

Regulated Forex brokers are forced to keep transactions transparent with documented financial reports as you need to submit these reports to regulatory authorities. And when they fail to do so, authorities have the right to penalize or terminate their membership. Regulated Forex broker allows resolution of any dispute increase investor protection.

Your broker will ensure the safety of your money. You can also get a chance to appeal in case of bankruptcy. Moreover, regulated Forex broker company, will also ensure that there are as few problems as a possible trading platform, which offers its merchants.

To learn regulated Forex broker, first you need to know that the broker is registered in. Some countries may have flexible laws for regulated Forex traders. Local regulators must regulate your broker.

For example, the National Association Future (NFA) and Commodity Futures Trading Commission or CFTC should regulate the brokers in the U.S., Switzerland, the brokers must be regulated by the Swiss Federal Ministry of Finance or FDF. These regulators protect the public against fraud, manipulation, and abusive trading practices.

Regulated Forex brokers are responsible to the authorities. They have specific rules to follow. These brokers, most of the information is available online and can easily find out their past performance.

The NFA web site can also help you find out if there were any serious issues on which clients or regulatory authorities with the broker in the past.

You can verify CFTC registration and NFA membership status of your Forex broker firm or individual and check the disciplinary history of the websites or phone numbers. Among the registered firms, look for one with clean regulatory records and solid financial support. Do you stay away from non-regulated firms!

NFA has recently published a booklet called "Retail Off-Exchange foreign exchange market" for educating investors about retail forex trading. You can consult this before choosing your broker.

The NFA also have interactive Forex Online Learning Program explains how the retail Forex contracts are traded, the risks inherent in currency trading and steps individuals should take before opening a Forex account.

Finally, before opening an account even with a regulated Forex broker, make sure that the broker will provide you with the support you need. If the market falls, they have the reserves to cope with it and will be around when you decide to withdraw your money.