Regulated Forex Brokers

Choosing the right forex broker is probably one of the hardest decisions to make. The things we generally look for while choosing the broker are the special offers they have, limitations, potential and historical performances, transparencies in transaction, etc. But the first criteria will be to find out if the broker is regulated or not.

A regulated broker ensures credibility. Because, every regulated broker has to present the fiscal reports to the regulatory bodies, such as local regulatory authorities like NFA (National Futures Association) or FDF (Swiss Federal Department of Finance) for US traders and brokers.

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For other countries, the dedicated regulatory authorities are for ASIC (Australia); OSC (Canada); DFSA (Denmark); BAFIN (Germany); FSA (Japan); GSCGI Polyreg OAR-G ARIF CFB SFDF (Switzerland); FSA (United Kingdom); SEC, CFTC, NFA (United States).

Stringent rules and orders issued by these regulatory authorities compel all registered or regulated forex brokers to maintain transparent fiscal reports.

Such regulations also facilitate the traders and depositors to trade safely that increase the overall investor security. If a particular broker fails to submit any report, these authorities have right to penalize them and can even cancel their market membership as a broker.

Therefore, regulated forex brokers are accountable to the authorities. They have specific rules and regulations to follow. So, you will find, with a regulated forex broker, most of the information is available online and you can easily search for the historical data of past performances.

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All these regulated brokers will be listed in the websites of these authorities.

So it is easy for you to find out if your broker is actually regulated or not.

It is equally important to find out the country of the regulatory authority as some countries may have flexible laws for regulated forex brokers.

When a forex broker is regulated, it allows the investor to dispute any resolution, increasing the investor’s protection.

The brokers must be regulated by their local regulatory authorities. For example, for US based brokers, they must be regulated by the NFA (National Futures Association) and CFTC (Commodity Futures Trading Commission. It doesn’t really matter where your broker is physically located, since the forex market is global, and in true sense, virtual.

Although it is important to look for a regulated forex broker, it is equally important to look for certain basic parameters for making the selection.

They are low transaction costs, availability of various currency pairs, immediate execution of orders, some fundamental and technical analyses tools, a low margin requirement, and for an automated broker, a user-friendly trading platform.

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