The Benefits of Being a Regulated Forex Broker
Most of the professional brokers today have a regulated by the government-issued license to operate in the forex market. The regulated Forex broker provides a certain level of sense of confidence and credibility for interested investors. But there are also a relatively small number of unlicensed, unregulated Forex brokers that are very active in the foreign exchange market. These brokers have neither a government license nor a trading license and they are not subject to the supervision by the Commodity Futures Trading Commission (CFTC). Some of these brokers are also called "high frequency" or "super bot" operators because their activities can be extremely fast-paced.
These unlicensed or unregulated Forex traders use their leverage to profit from small price movements in the forex market. The leverage gives them the ability to attain greater gains from small movements in price than retail traders. Leverage is typically applied when there is little or no traditional risk-taking capabilities. Regulated forex brokers, with a government license, is able to exercise greater leverage than the retail traders.
As part of their trading services, these brokers offer a minimum deposit. A minimum deposit is required to open an account with them. The minimum deposit required for most of the regulated brokers is one or sometimes two hundred dollars. This deposit is used to hold the principal asset - the account balance. In order to access the benefits of minimum deposit trades, the traders must maintain a balance above a predetermined limit.
Unscrupulous traders have been known to use the Regulation D rule as an opportunity to earn commissions. With Regulation D, financial companies are required to submit detailed reports on their activities to the regulator. Regulated Forex Brokers is required to inform the traders about the new rules and to follow them strictly. If they do not comply, the traders may be penalized by the regulators.
The Regulated Forex Broker Rules applies to all members of the buying and selling club. These include retail investors and commercial investors such as individual corporate or business corporations. The Regulated Forex Broker Rules was enacted by the SEC (Securities Exchange Commission). They are in place to protect the financial market and the liquidity of the foreign currency exchange market. For this reason, the Regulated Forex Brokers Rule requires members to register under the Commission before beginning to participate in the regulated forex club.
Regulated Forex Brokers has different ways of registering. One of the many Regulated Forex Brokers is the ASIC-regulated broker. An ASIC-regulated broker is one who is a member of the Institute of Securities Acceptance, which is under the authority of the US Department of Treasury. The ASIC-regulated agents are required to submit audited financial statements and to undergo in-depth examinations from time to time. This information will help the Regulated Forex Brokers provide the Regulated Forex Brokers List with updated information on all its member brokers.
Aside from being an ASIC-regulated broker, an accredited investor can also become a member of the Regulated Forex Brokers Club. This club also offers assistance to novice traders. This club requires its members to undergo extensive training in order to learn the nuances of the foreign exchange market. In addition, the club also provides a comprehensive list of all its members, their contact information and all other important information that would facilitate for the investors to make their decision on which broker to hire. Other valuable resources that the aspiring investors can use in order to choose a broker are the Broker List and the Review Site.
The south african forex brokers has been able to gain the trust and confidence of the budding investors due to several advantages that they offer. Among the benefits that the investors get from these brokers are that they provide the traders with expert advice that greatly helps in successful trading. This advice also comes in handy when the trader wishes to expand his business. In addition, the Regulated Forex Brokers plays an important role as they play the crucial role in choosing an ideal forex broker. If you wish to be a member of this prestigious club, you should look for a reliable forex broker by doing thorough research online.
The best forex brokers however are those that cater to both the beginner and advanced traders. There are many companies that specialize in this. The best forex brokers of course cater to every type of investor out there. The top four Forex trading brokers today are Global Forex Trading, TMX, Fap Turbo and Profit Lance. These four offers more personalized service to traders making them more appealing to beginners.
The best forex brokers however come with a wide range of investment choices. These investment options include but are not limited to options, currencies, stock funds, commodities, indices and bonds. All types of investment opportunities can be traded using these brokers. The best brokers however also offer flexibility. This means that newbies who want to get started can trade in less risky but still lucrative currencies.
One thing to note about the best forex brokers is that they have online trading platforms. The online trading platforms are where traders will perform all their transactions. Online brokers therefore give traders more freedom and flexibility than traders in the real world. These online trading platforms are usually referred to as ATM's or Automated Trading Platforms. They are usually part of an integrated system which gives traders added benefits like account management and risk management.
With all these advantages, it is no wonder why the best forex brokers for beginners are attracting more traders. For a beginner, all this equates to increased market exposure and risk management. For a beginner, these benefits alone would be enough to entice them to go out there and start investing in currencies. If you are looking to become a trader yourself, you should know that there are some additional benefits that these best brokers for beginners offer. These benefits would include things like account management, training and mentoring. These things are all offered by a good online forex brokerage firm and would be highly beneficial to you as a new trader.