New traders wishing to open their first account in forex trading that overseen by Forex Regulatory Bodies are the most vulnerable to fall prey to scam broker most easily. Today, many unlicensed brokers are looking for a way to get money from new traders.
They have found ingenious ways as their traps to lure their victims. This is why new traders need to understand how to check if they get an account offer is from a regulated forex broker.
The jurisdictions of the location of most of the forex brokerage around the world are covered by the most important forex market regulator. In reality, it is impossible to have a forex broker in every country.
Ensure a Regulated Forex Broker
Today, many fx regulators insist that the broker’s license number is listed prominently by Forex Regulatory Bodies on their websites. This should be done prominently and not on some obscure part of the website that you might have missed.
For example, forex brokers regulated by ASIC are classified as Australian Financial Service Companies. Those brokers must have an Australian Financial Service License number (AFSL number). Some forex regulator website has built-in search engines to help users to search for the status of a broker.
The name of the broker can be typed and if that broker is licensed and regulated by Forex Regulatory Bodies, its position and detail will be displayed. In this case of position, an active license may be owned by a broker, or its operating license may be withdrawn or suspended.
Some regulators provide regular alerts about scam broker activity. There are forex regulatory agencies that also maintain an updated blacklist of brokers. Name of brokers who have been withdrawn or suspended or have cases with the regulator that have been proven are listed in this blacklist.
Securing Forex Investment by using a Forex Regulatory Bodies
Unfortunately, most retail traders do not use forex regulatory agency website as their first place to go when they want to start trading. If only something goes wrong along the way, they check regulators.
So, it not just about trading forex, but before you even enter the market, it is about securing your investment. The traders’ funds are kept in trust as they trade on the market by an entity called the best forex broker.
So, before traders deposit money with their account, they need to know with whom do they are dealing. If a trader has not carried out the required checks with the broker and feels that they has been short on money by the broker, there are several ways to seek redress.
A formal complaint must be filed with the regulatory body covering the jurisdiction of the location of the broker. If the broker is licensed and regulated by a regulatory body, there will be an investigation. If the broker is found responsible, enforcement action will be taken.
Various types of enforcement actions are carried out by forex regulatory bodies. In 2004,the FXCM denounced by the CFTC with restitutory fees and a total fine of $14 million for unfair market practices against their clients. Price manipulations and stop hunting are some of which.
Starting in 2017, FXCM has been permanently banned and shut down from operating in the United States after the company made the same mistake. So, for the traders, it is possible to get back their stolen money.
You will not experience such bad things when trading if you choose the right like didimax forex broker partner to reach your success in trade. Didimax is a great broker with world-class resources and support and has low spread trade.
Didimax is the winner of Best Forex broker Education Indonesia this year by Finance Review UK and Global Banking. What are you waiting for, trade with us, and become successful trading by understanding Forex Regulatory Bodies and use the best strategy to trade.
