Forex Brokers – Who Is Charge In Regulating?

When you encounted with a new forex broker your first step is to choose the right forex broker. Is not in the beginning but whole searching process might leave you tried at times. There is a lot of enormous competition between forex brokers, and what they could offer you; at times they have also different features, exciting capabilities and outstanding advantages. However, along with the exceptional features you might find a potential weakness in these brokers.

The weakness I am talking about here is whether your forex broker is a regulated. Forex brokers can be bad at times you might even find it difficult to withdraw your profits if your forex broker is not under some kind of authority supervision a must do for a future forex trader.

Here are some regulatory authorities.

1. National Futures Association (NFA)
2. Commodity Futures Trading Commission (CFTC)
3. The Financial Futures Association of Japan (FFAJ)
4. Canadian Investor Protection Fund (CIPF)

The following question you probably want to ask yourself is how these regulatory authorities keep forex brokers straight. Here is a example.

Your forex broker is responsible for your money, whether deposited or profited. A Regulated forex broker is under a watchful eye of the regulator authority. In any situation that something goes wrong with deposit, withdrawal or even with the trading platform, you can complain, sue or file an appeal regarding your forex broker. The regulatory authorities protect forex traders against fraud, scam and illegal trading practices and remember do your homework and research for these brokers.

The Regulated forex broker will not hide the fact that he is regulated and who is the authority. You can easily spot it on the forex broker website – either on the home page or at “about us” section and their regulation number is printed at the site.

The authority of a regulated forex broker is located at the country where the broker is registered in. For example, forex brokers which are regulated by NFA and CFTC are brokers located in USA. While any regulated forex broker registed in Swiss is regulated by FDF.

To wrap this up, trading with regulated forex broker gives you a security and protection you need as a forex trader once you have done your research you gain more confidence.

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