The market for forex exchange is one of the largest and one that is quite popular financial market all over the world, with a transaction daily of over $5 trillion. It is currently one of the best income sources for millions of traders throughout the world. And with brokers such as cfd trading South Africa, you rest assured that, you are safe.
Whenever you consider getting involved in the forex trading, there are several decisions which are important to make and one of them would be the online broker that you are going to use. The brokerage company is going to be working on your behalf by having to carry out your trades as well as hold your online money for trading facilitation.
When you consider that, you need to pick a broker that you can readily depend on and at the same time, trust with your money, so that you can make the highest possible returns on your investment.
When you choose a forex broker, there are various things that you have to consider such as spreads, commission rates, and historical leverage and performance options. But one of the most important aspect that you have to bear in mind is whether your broker of choice is regulated or not. The following are the benefits that you will enjoy when you use a regulated forex broker:
Trading operations which are transparent
Traders who use regulated broker are able to experience honest and transparent trading operations. It is due to the fact that the regulated brokers are required by law to serve their clients with a lot of transparency, without the need to manipulate the market to be in their favor.
They also require submitting financial report periodically to the regulatory body which if they don’t; it might result in the termination of their membership and the traders to be informed about the same.
That is the reason as to why there is a need to check the potential broker’s license validity and its historical records with the regulatory authority to avoid to work with a broker who is falsely regulated.
Safety of the funds of the trader
Forex brokers that are regulated are normally required by law to avoid mixing the funds of their investors with that of the firm. That denotes that, the broker is required to have a separate account for keeping the money of its clients. At no given time should such funds be used in financing personal needs.
Apart from that, if a brokerage firm becomes bankrupt, it is impossible in using the funds for the clients in repaying the creditors. The money had to be used only in compensating the clients. That makes your money safe because the trader is going to be safe, irrespective of what happens with the broker.
Recourse in case there is a dispute
In case an issue arises, forex brokers who are fake are hard to be contacted. Regulations makes it possible for the broker to have a working telephone number, support desk, email and an actual person that will help you whenever you require assistance.