Looking at how easy it is to trade in the forex market anyone could feel tempted to invest some money in exchanging currencies for profits. However, there are good and bad people in every walk of life. When you want to start trading in the forex market you have to find a broker first and open an account with the broker to start trading. That’s the most important decision of your forex trading career. Choosing a wrong broker could make you repulsive towards forex market forever and picking the right one could make you a great trader one day.
The most important thing to see when you are looking through many online brokers is to see if they are being regulated and audited by the reliable financial auditing firms in your country. Different countries have different institutions taking care of the consumer rights in the finance market. If you are in United Kingdom then you need to make sure that your broker is regulated by FCA. FCA stands for financial conduct authority and this is the body that regulates the financial institutions in the region to ensure that every financial transaction is conducted legally and lawfully.
Of course, FCA cannot monitor every single trade being done through thousands of brokers but it can always respond to the complaints from the traders. Strict regulation and audits ensure that all brokers are doing business legally and providing honest services to their customers. It must also be known here that if a particular financial institution is found guilty of a wrong conduct, the FCA can ban it from doing any financial transactions for a year while investigating further into the matters. It also ensures to send instructions to financial institutions on their conducts, promotions and all other financial activities that affect final consumers.
As mentioned above, the most important step you have to take when you are looking to invest money in the forex market is to find the right broker. Being regulated by FCA is something that makes the online brokers feel confident on their services. This is the reason you will often find information about FCA regulation on the websites of these brokers. If you don’t see that your broker is regulated by FCA it is best that you don’t move on to trade through him. Always find a broker that’s audited and regulated by FCA and meets the necessary standards.
Firms that are serious with their business can go on FCA’s website and become part of their network of institutions that are regulated by them. FCA expects these financial institutions to follow certain instructions, meet certain criteria and also maintain the standards mentioned by the regulating body. Not to forget that FCA is also involved in enforcement of the rules and regulations laid out for the financial firms. You can always go online and search specifically for forex brokers that are regulated by FCA. Only after proper research should you deposit any funds in your online account with your forex broker.