Best Forex Broker Uk
When it comes to selecting a Forex broker there are many criteria on which you can base your decision including the brokers trading platform, currency spreads and the levels of leverage available. These can make the decision as to which broker to choose difficult. However the most important factor in your selection process is to ensure that the broker you select is a regulated Forex broker. Best Forex Broker Uk
What it means to be a regulated Forex broker
Regulated Forex brokers have membership of a regulated financial authority. This requires that their company activities are monitored and that they adhere to a strict set of criteria set out by the regulatory body in order to run their business.
In order to become regulated a Currency Brokerage firm will need to meet and maintain a minimum set of requirements on an ongoing basis. These requirements include maintaining sufficient financial assets to ensure the continued operation of the company and also following strict operational standards and procedures as defined by the authority.
Part of this regulation requires them to maintain transparency in their financial documentation. They will also be required to submit detailed financial reports and can be fined or have their membership terminated if they fail to do so. Failure to comply with guidelines set out for this documentation can also lead to similar penalties.
Why you should look for a regulated Forex broker
Regulated Forex brokers have to adhere to a set of guidelines which are designed to help both protect and maintain a level of service to the client. They are also accountable for their actions to the authorities of which they are members.
A key point here is that client deposits are held separately from company funds. Regulation dictates that client deposits cannot be used to fund the broker’s operational activities which help to ensure the safety of your money. This also offers protection to the client in the event that the broker goes bankrupt as funds held in the client account cannot be used to pay back creditors.
Regulations also apply to areas such as the personal information held of clients, quality assurance standards maintained by the broker, monitoring of fraud and customer service and support. Best Forex Broker Uk
How to check that a Forex Broker is regulated
You can easily find out if a Forex Broker is regulated As a results of previous problems in the market place, most regulated Forex brokers will now detail their regulatory status on their website. They will also list any applicable membership of other financial authorities.
The actual body that a broker is regulated with by will vary on the country of jurisdiction of the Forex broker. Countries with dedicated regulatory agencies include the USA, UK, Euro zone, Japan, Australia and Switzerland.
Examples of regulatory authorities include the National Futures Association (NFA) or Commodity Futures Trading Commission or (CFTC) for US brokers, the Financial Services Authority (FSA) for UK based brokers and MiFID and CySEC for Euro zone brokers. You can check the full regulatory standards on the regulatory authorities’ website.
A broker is not required to have membership of multiple regulatory bodies as each of these bodies will help to protect against fraud and manipulative trade practices. It is however important that the broker that you select is a member of at least one.
So when you come to choosing your broker take time to make sure that your Forex broker is regulated. At the very least you will ensure you receive service based on a regulated set of standards and if the worst happens and your broker suffers financial difficulties, your deposited funds will be protected. Best Forex Broker Uk