You’ve decided to try Forex trading, and you cannot wait to make huge profits from it. However, there are certain things you are still doubtful about. In the first place is your broker. Is your chosen Forex broker the best solution for you or not?
First of all, when you go internet searching, you will realize that many fraudulent brokers offer unrealistic things to their potential customers. Although the Forex market is getting more regulated each day, it’s essential to recognize that numerous unscrupulous brokers must be expelled from the online trading business.
So what is essential for you to have in mind while choosing a Forex broker? How can you be 100% sure it’s not a scam? We’ve provided you with some valuable tips you should consider.
Do proper research of preferred Forex brokers.
If you are interested in a professional trading career, it’s crucial to identify reliable and viable brokers from those who are not. To pick a quality one, it’s essential to read the
forex broker review, which will give you all the relevant information about it.
You would want to avoid reputable brokers from shady ones, and reading reviews and doing proper research can help. In one particular review, you’d be able to see what that broker offers you.
Make sure that regulatory agencies regulate the broker.
Since the Forex market is decentralized, it’s easy to fall into the trap of unregulated brokers. So, you must check with your broker if it is regulated by regulatory agencies, like the Commodities Futures Trade Commission – CFTC, and the National Futures Association – NFA.
It’s essential to know that the Forex market in the European Economic Area (EEA) is under unified regulation rules.
The most popular European regulatory agencies
In Europe, some of the most popular regulatory agencies are:
- Swiss Financial Market Supervisory Authority (FINMA) in Switzerland
- Financial Services Authority (FSA); Financial Conduct Authority (FCA), both in the UK
- AFM – the Authority for the Financial Markets in the Netherlands
- Danish Financial Supervisory Authority (Danish FSA) in Denmark
- Central Bank of Ireland (CBI) in Ireland
- Commissione Nazionale per le Società e la Borsa (CONSOB) in Italy
- Federal Financial Supervisory Authority (BaFin) in Germany
- Autorité des Marchés Financiers (AMF) in France
- Swedish Financial Supervisory Authority (Finansinspektionen) in Sweden
- Polish Financial Supervision Authority (KNF) in Poland
- CYSEC – Cyprus Securities and Exchange Commission in Cyprus
- Malta Financial Services Authority (MFSA) in Malta
- National Securities Market Commission in Spain
- Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg
- Banking Finance and Insurance Commission (CBFA) in Belgium
- Securities Market Agency (ATVP) in Slovenia
- Financial Supervision Commission of Bulgaria (FSC) in Bulgaria
- Portuguese Securities Market Commission (CMVM) in Portugal
- Romanian National Securities Commission in Romania
- Capital Market Commission in Greece
- Czech National Bank in the Czech Republic
Keep learning and upgrading your knowledge.
Trading itself can be very hard if you don’t understand it completely. One of the best ways to become a successful trader and avoid scam brokers is to keep learning about Forex every day and be in touch with the latest news, events, and developments in the industry.
Passion and dedication are everything in this business. Be persistent and learn as much as you can to become a real professional Forex trader in the future. Good luck!