Most professional forex brokers you see today are regulated by some renowned authorities. Additionally, they have obtained a license to operate in the forex market. When you choose a regulated broker, it brings a certain level of confidence and credibility to the broker’s functioning. So, if you are planning to step into the world of forex but aren’t sure from whom to take help, don’t worry. All you need to check is if the broker is regulated or not. Here are the reasons why it can be beneficial for you to opt for a regulated forex broker.
- Protection: No wonder forex traders want to be protected at all costs. Hence, to ensure the safety of their funds, traders should only prefer regulated brokers as they can provide them with a secure platform to trade. These days, a potential trader is likely to approach a regulated broker so that he can trade with complete peace of mind. The absence of the regulatory status would mean you cannot trust the broker completely with the security of funds. Hence, your assets are exposed to huge risks.
- Credibility: Additionally, a regulatory status ensures the credibility of the forex broker. If the broker was able to meet all the required criteria to obtain the license from a recognised authority, it signifies that the broker will do whatever it takes to adhere to the standard guidelines. Therefore, potential investors view a regulator broker as reliable and trustworthy.
- Transparency: If you don’t want to fall prey to fraudulent forex brokers, you must ensure that the chosen broker does not hide something from you. The broker should maintain transparency at all levels throughout the trading process. Potential traders should always choose those brokers who are transparent in their operations and do not hinder the information access that the clients require.
- Customer Support: Regulated forex brokers are known to offer excellent customer support to their clients. The level of service offered by the brokers undoubtedly attracts more potential investors. Hence, regulated brokers are a top choice of many traders as they are interested in preserving their reputation and goodwill, which they effectively do so by offering high-quality customer service.
- Advanced System: A regulated forex broker is required to keep up with the latest industry happenings and events, which makes him competitive and better than unregulated brokers. Regulated brokers are on top of all the current forex developments to offer the best services to their clients.
Also read: Things to Consider When Choosing a Forex Broker
An unregulated forex broker is not bound to adhere to the consumer protection regulations like protecting customers’ funds, providing clear and transparent information and disclosing how it executes trades. Additionally, they are least bothered about resolving customers’ queries and issues. Although they may promise good trading conditions, tight spreads, and ridiculously high forex leverage, it is recommended to avoid them as the probability of these companies being fraudulent are really high. If you choose an unregulated broker and experience some sort of unfair treatment, such as the inability to withdraw funds or manipulation in trades, you would be in no position to get protection under some law and regulation. Therefore, one must only select a regulated forex broker for trading purposes.