Forex trading is also known as FX trading is one of the most sought after markets in the financial sector. Since there were immense opportunities coming the FX trading way, the market has gained huge popularity. When someone decides to start their Forex trading journey, one of the most important details to look forward to is which brokerage you are going to be working with.
Regulated and unregulated FX brokers
A broker is an intermediary company between the trader and the Forex market, providing financial services that allow investors to perform trades. Choosing the right broker can be the biggest challenge. Due to the popularity of this type of service, there has been a wave of new broker companies entering the market. Hence detecting the scam in this sea of broker companies has become even harder. To better understand the deal behind the broker companies let’s discuss the difference between unregulated and regulated brokers.
The term itself gives a good explanation, that unregulated brokers are companies that have no 3rd party checking their activities. In simpler words, there is a higher chance of that company eventually being a scam. They can easily take your money and disappear from the face of the earth with no explanations. You might ask why would anyone fall for this and start trading with unregulated companies? Usually, these types of brokers lure you in with impossible good deals, little to no fees, because of how amazing these offers might seem, traders overlook the red flags that the brokerage might have and ultimately can lose all of their money.
As the name suggests, the company that is regulated by a regulatory firm and monitors its actions is a regulated brokerage. Usually, the fees and the terms are up to the market standard which should be a good indicator that this brokerage can be trusted. One of the biggest pieces of advice is to always look for referrals and other proof that the company is trusted. It is better to dedicate time to researching the broker than later to regret it. If you are curious to learn more about financial markets, check out Elite CurrenSea – an award-winning trading and education company that has a deeper understanding of the Forex market, visit https://elitecurrensea.com/trusted-brokers/ to see the list of trusted brokers.
No matter how hard we try, there’s always going to be scamming companies out there willing to steal money. At the end of the day make sure to never turn a blind eye on the brokers’ red flags just because of the enticing deals they might present you.
One of the best websites you may want to visit in order to inspect if the broker is verified or not is forexpeacarmy.com, which is a platform to check what other traders are saying about the regulatory status of particular brokers.