Selecting a Forex Broker - Forex Trading Strategy Q&A | Forex
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How to select a Forex broker? There is nothing you can do if a broker goes out of business and takes your money with it, however there are safeguards that you can have to minimise that chance dramatically. First of all I would say always select a broker in your home country, particularly if you live in a trusted country such as the US, UK, Europe, Australia or New Zealand, because those developed first world countries have advanced regulatory systems in place. These countries have regulated bodies that check if brokers are playing by the rules, and if they’re not playing by the rules they will get investigated and punished, which of course protects the client The second reason to choose a broker in a developed country is because they offer protection. What I mean by this for example is, in the UK each client is protected up to the value of £50,000 in case anything goes wrong with their investment or bank account, which applies to brokerages as well. This gives an extra layer of protection and peace of mind. Going with a broker that’s not regulated and within a country that you don’t trust, and that don’t offer the same protection means there’s a very good chance they will take your money, or if they go out of business, you have no protection over your investment. In summary You should pick a broker that’s regulated from a country that you trust, preferably your home country if you can. Also you should check the reviews, there’s lots of websites that review brokers which will also help you by getting feedback off people who have already traded at that brokerage.
Comments
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hello , thanks for sharing i really like your videos , and i want to ask you about the Chypre regulations , what do you think about Chypre regulation ?
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Hi Jarratt!
Can i ask what broker do u have? Or can u name some good brokers? I need i new broker but it is hard to find! -
Nadex is the way to go!!
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How to Select a Forex Broker
This is a very popular question that I’m asked frequently, and in this post I will explain the best way to choose a Forex Broker.
There is nothing you can do if a broker goes out of business and takes your money with it, however there are safeguards that you can have to minimise that chance dramatically.
First of all I would say always select a broker in your home country, particularly if you live in a trusted country such as the US, UK, Europe, Australia or New Zealand, because those developed first world countries have advanced regulatory systems in place.
These countries have regulated bodies that check if brokers are playing by the rules, and if they’re not playing by the rules they will get investigated and punished, which of course protects the client
The second reason to choose a broker in a developed country is because they offer protection. What I mean by this for example is, in the UK each client is protected up to the value of £50,000 in case anything goes wrong with their investment or bank account, which applies to brokerages as well. This gives an extra layer of protection and peace of mind.
Going with a broker that’s not regulated and within a country that you don’t trust, and that don’t offer the same protection means there’s a very good chance they will take your money, or if they go out of business, you have no protection over your investment.
In summary
You should pick a broker that’s regulated from a country that you trust, preferably your home country if you can. Also you should check the reviews, there’s lots of websites that review brokers which will also help you by getting feedback off people who have already traded at that brokerage. -
Thank jarratt