Understanding FCA Regulation and Its Importance for Forex Brokers
Unlike other forms of trading, forex trading isn’t as difficult and with little time spent on training a person could start to trade in this financial market. There are always different kinds of people. There are those who stay away from taking any risks and then there are those who take risks to benefit from them in future. However, taking risks doesn’t mean you should not closely examine your opportunities. When you are interested in trading in forex market you have to get in touch with a broker. This is where you have to be very careful in order to choose the right broker.
A right broker can get you set up to start with successful trades. It’s true that there are many out there who just want to play with your money and with many marketing gimmicks they will make you dish out your money for no benefit. In such a case, it is always highly recommended that you look for an ECN broker. You can also research on the internet to know about the reputation of various brokers. However, FCA regulation remains the most important factor in deciding whether a broker is reliable for future trading or not.
FCA is the name of the authority that regulates the activities of various financial institutions including the forex brokers. It also makes sure to enforce the laws and standards that would keep the financial institutions providing best and most reliable services to their customers. For example, online brokers providing forex trading opportunities to traders are also regulated by FCA and this is why you would see a section on the websites of these brokers stating their regulation by FCA. It is a sign of a reliable broker and you can always trust an FCA regulated broker for submitting funds in your accounts and conducting trades.
As mentioned on the FCA website, the body’s responsibilities not only include the regulation but enforcement, protection and promotion of good competition among the regulated firms. The governance of FCA is in the hand of the board from treasury. The annual reports of the regulations and performance of the body is easily available on the FCA’s official website and can be viewed by any website visitor. Customer satisfaction reports, listings, notifications, authorizations, regulatory decisions etc. are all mentioned on the website for people who are interested in knowing about how this institution works and protects the rights of the people.
Online forex brokers and other financial service bodies have to make sure that they are providing services that are on par with their promises. The forex brokers allow their traders to trade online and through their downloadable applications. Each forex broker has its own set of softwares and applications that traders have to use to conduct the trades. These softwares have to be safe and provide credible service to the traders. In addition to that, many of the features of these trading platforms demand automation and that’s where traders need most security. FCA ensures that manual, semi-automatic and automatic trades are all secure and done honestly.
