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HOW TO CHECK FOREX REGULATION?

Many forex traders don’t know whether the broker they are trading at is reliable or not. They just trade like that. They are always in a constant fear that one day the broker will take all their money. The only way to make sure the broker is safe is to check its regulation. So how can we check the regulations of the broker? Let me give you some examples:

FCA regulation from the United Kingdom

Many traders trust this organization. Of course they do. FCA is one of the biggest forex regulators in the world. To check whether your broker is regulated by FCA, just simply do the following steps:

  • Go to https://register.fca.org.uk/
  • Type your broker’s name in the SEARCH box
  • If your broker is regulated by FCA, its regulation information will appear. If not, there will be no result.

CySEC regulation from Cyprus

CySEC is also a regulation that many brokers apply for. It is good enough to keep traders safe and happy. To check whether your broker is regulated by CySEC, just simply do the following steps:

  • Go to http://www.cysec.gov.cy/en-GB/entities/investment-firms/cypriot/
  • Type your broker’s name in the SEARCH box
  • If your broker is regulated by CySEC, its regulation information will appear. If not, there will be no result.

ASIC regulation from Australia

For Asian traders, a name that they can trust is the ASIC of Australia. This is a prestigious organization in Pacific Asia. To check whether your broker is regulated by ASIC, just simply do the following steps:

  • Go to https://connectonline.asic.gov.au/RegistrySearch/faces/landing/SearchRegisters.jspx?
  • Type your broker’s name in the SEARCH box
  • If your broker is regulated by ASIC, its regulation information will appear. If not, there will be no result.

Something to keep in mind

Always remember to check what the regulation can do to the broker. Sometimes you may not expect what the broker can and can’t do. Or sometimes, a broker can copy the name of another regulated company. Double check the information carefully when you look for the regulation of the broker.

5 steps to check the quality of a broker

  1. Go to the broker’s homepage and check their regulation as well as the country where they’re from.
  2. Check their website’s traffic to see where their customers come from the most. If there are only a small number of small countries like Indonesia or Malaysia, that broker is not very trustworthy.
  3. See if the big review sites like BRKV Forex or ForexFactory ever mention that broker. If not, they are not the one you should be working with.
  4. Read the reviews of that broker in the last 2 or 3 years. See how they handle problems. See what customers think about that broker.
  5. Open a real account to see if they have good trading conditions. This last step may take you 2 or 3 months to test everything. Some problems only show up when you trade a real account.