Choosing a right forex broker is one of the important strategies for any retail forex or bitcoin broker. There are many things to consider while choosing a trusted broker like commission rates, historical performance, spreads, leverage options, etc. But first and foremost thing to check is whether the forex broker is regulated or not.
Regulated broker means that broker/firm is regulated by local regulatory bodies – the “watchdogs” for the financial market. A Regulatory body aims to prevent fraudulent activities, excessive risk in the financial market and also increasing consumers’ awareness.
When UK forex and bitcoin brokers are regulated by FCA (Financial Conduct Authority), it means that all their trading operations are performed accordance with the policy, industrial standards and guidelines set by the FCA as local regulatory body and they are subjected to periodic audit from regulatory authorities. They are closely watched and controlled by the regulatory body. When regulated forex broker fails to follow the standards and guidelines set by the regulatory authority, and they are liable for legal action from regulatory authorities.
Benefits of Forex and Bitcoin Trading with FCA U.K. Brokers
Transparent Trading Operation
By dealing with a regulated forex broker uk, the trader can experience transparent trading operation. This is because regulated they are compelled to operate with complete transparency and related fiscal reports have to be produced to regulatory authorities periodically. Failing to do, brokers’ membership can be terminated, and same will be informed to traders too. Traders can check their current or prospective forex or bitcoin broker’s historical/current records from the regulatory authority.
Safety To Investors’ Money
As per FCA UK rules, regulated forex broker cannot mix up their clients’ fund with the firms’ funds. This means that they need to maintain a separate account to hold their clients’ fund, and at any point, it cannot be used to cover up their own needs. Also, if a broker goes bankrupt, clients’ fund cannot be used repay the creditor and can be used only to compensate clients’. In this way, investors’ money is safe with a regulated broker, even if anything wrong happened to him.
While a non-regulated broker may offer what look like great deals to potential traders, a trader can feel more secure in their investment by choosing a regulated broker and the benefits of regulation.
To be qualified as a regulated broker in the UK , the broker must meet and adhere to established standards and limitations. The FCA UK reviews the broker’s practices from time to time to ensure continued adherence to these standards.
We have all seen how quickly financial instability can pull the rug out from under a financial sector and how rapid changes in market conditions can fatally damage even the most stable company. Therefore to protect traders under these conditions, most regulated brokers maintain segregated accounts: meaning that the broker is not able to use the funds in the traders’ accounts for any reason.
Forex and Bitcoin Brokers Guarantee Credibility
Forex and Bitcoin brokers that are regulated ensure credibility because every regulated broker must provide fiscal reports to regulatory bodies like FSA in the United Kingdom. Other countries have comparable regulatory bodies. The investor has increased security from trading with a broker that is regulated because disputes can then be more effectively resolved.
Protects the Value of Security For the Benefit of Investor
Maintaining transparent fiscal reports is a requirement to remain regulated Forex or Bitcoin brokers. Also, brokerage firms need to trade in ways that increase overall investor security, not decrease it. If the FSA UK find that a brokerage firm is decreasing investor security, they have the power and authority to penalize them and even to strip them of their market membership as a Forex or Bitcoin broker.
Makes Investor’s Trading Experience Easy and Profitable
Trading with an FSA regulated Forex or Bitcoin broker that is right for you is essential to making money online as a Forex trader. Also, FSA usually evaluates whether the brokers provide the right software platform to meet investors trading needs. They also monitor whether brokers provides investors with the proper training to make profits from the Forex market, and provides them with expert support if anyone has questions and difficulties.
As a trader, you should look out for FSA UK regulated Forex brokers because some may have hidden costs that can add up if you’re not aware of them. That is why it is essential to read their websites carefully before deciding upon the firm that will handle your trades. See recommended brokers that are FCA UK broker regulated https://fxdailyreport.com/trusted-forex-brokers-fca-uk/.Even if the firm is regulated; the chances are that you may not receive your funds back if you failed to read and consider all of the terms and conditions of the service before signing up with them.