Regulated Broker

Discussion in 'Forex Brokers' started by Arleigh, Nov 8, 2017.

  1. Arleigh

    Arleigh Newbie

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    Hi, I would like to if how would I know if the broker is regulated?
     
  2. OlyviaDanielsen

    OlyviaDanielsen Trader

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    As a trader we should always look for a regulated and trusted broker, that's why searching carefully and wisely in a broker is mandatory for us as a trader we can avoid fraud. Basically, You will know if the broker is regulated if it is registered or under licensed in CySEC (Cyprus Security) and the second major CySEC ruling is the mandatory participation in the Investor Compensation Fund (ICF), and that will provide a safe and secure trading environment and also that can provide all the knowledge and tools that the trader needs in a trading.
     
    Last edited by a moderator: Nov 8, 2017
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  3. Gustaf

    Gustaf Trader

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    most of the time a regulated broker provide or show its regulation on its own website.
     
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  4. Enivid

    Enivid Administrator Staff Member

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    Regulated brokers should present their license/registration information on their websites. When you find their license or registration number - proceed to the respective regulator's website and find the company's profile there using that number. Then, make sure the data matches. For example, the license should cover Forex trading services and the website (domain name) should usually be mentioned somewhere in the profile (under something like 'Doing business as').
     
  5. jellyeb

    jellyeb Active Trader

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    Which license puts a broker in the top list of professional choice? FCA or NFA?
     
  6. Enivid

    Enivid Administrator Staff Member

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    Both are solid regulatory agencies. Their rules regarding the trading restrictions are very different though. So, a trader should study the specific conditions that would affect his trading and choose accordingly.
     
  7. jellyeb

    jellyeb Active Trader

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    Ok, thanks for the information? But is it possible for offshore broker to receive US license? What benefits could it give for regular traders like use which live outside the US?
     
  8. Enivid

    Enivid Administrator Staff Member

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    An offshore broker can establish a US company, which will become a member of NFA and satisfy all the current requirements for RFEDs.

    Dealing with a company that is properly supervised and capitalized is a big benefit. It reduces the risk of both intentional fraud and unintentional financial troubles in the company.
     
  9. jellyeb

    jellyeb Active Trader

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    Oh ok thanks for your feedback. But what is RFED can't find information about it..
     
  10. Enivid

    Enivid Administrator Staff Member

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    RFED is a Registered Foreign Exchange Dealer.
     
  11. Bradley79

    Bradley79 Newbie

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    As a trader, some of my rules:
    1. Always look for a regulated broker
    2. If the broker claims he is regulated - check the regulator's registry to verify.
    3. Make sure the broker is regulated by a big, stable authority like - just to name a few - FCA, ACPR, BaFin or CySec (contrary to popular belief Cyprus [CySec] is now a part of the EU and all EU regulations apply).
    4. Take note if the broker is regulated or just registered/licensed. There is a difference.
    If a broker is licensed - this essentially means he is not regulated by said regulator. Meaning he can provide his services in the said regulator's country but all issues that you may have with the broker and sent to the licence provider will be forwarded to the actual regulator. And if the regulator is some off-shore island (Island of Man, Seychelles, Vanuatu etc) I'd stay away but that's just my opinion.
     
  12. JohnyIve

    JohnyIve Trader

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    Yep, totally agree with you
     

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