The Forex market is the world’s largest and most liquid market, with daily transaction volumes reaching 6.6 trillion dollars and a market value of $2.4 quadrillion. If you use a regulated Forex broker with reasonable spreads, you’ll be able to delve into a world of possibilities to grab opportunities and generate profits safely.
The foreign currency market is still the world’s largest financial market, with roughly $5 trillion daily trading volume. This market is undeniably unique because of its geographical dispersion, connectivity, and flexibility. Traders can access the Forex market 24 hours a day, seven days a week, except on weekends, employ various leverages to improve profit, and take advantage of a range of other benefits offered by the FX market. However, there are still numerous dangers to be aware of. As a result, it is critical to invest in a reputable and regulated foreign exchange broker.
When choosing a broker, however, you should consider not only the spreads or commissions you’ll be paying but also if the Forex broker is officially licensed. Choosing the appropriate broker can mean the difference between keeping or losing your trading assets. A regulated broker is one whose actions are monitored and overseen by a local regulatory authority to prevent the broker from engaging in illicit practices or taking excessive risks.
Are you thinking of entering the forex market but not sure where to start? You’ve come to the right place. Whether you have a modest investment and are searching for forex account brokers, or you want to begin trading with the help of professional brokers who can teach you everything you need to know about trading, you must first understand the importance of using a registered forex broker. This article will discuss the benefits of using forex brokers regulated by reputable institutions to trade currencies.
- Regulation By a Registered Authority
Monetary Authority of Singapore (MAS) is a top-tier financial regulator whose primary purpose in regulating Forex brokers is to keep traders secure and provide them with peace of mind.
In the case of a broker’s bankruptcy or liquidation, MAS-regulated brokers must ensure that the money of retail customers is maintained safely.
There have been safeguards put in place to ensure the broker’s monetary sustainability and health, as well as to ensure that no customer funds are utilized for the firm’s commercial activities.
When looking for a Forex broker in Singapore, make sure they have a Capital Market Services (CMS) license from the Monetary Authority of Singapore (MAS).
It assures that the broker adheres to a set of stringent MAS standards that protect traders and investors.
- Your Trading Funds are kept Separate, Safe, and Secure
As a client, you don’t want your trading and investment funds to be jeopardized. One of the prerequisites of being a regulated and registered Forex broker is to have separated financial accounts that isolate the assets of your clients from your business finances.
This ensures that if a broker encounters difficulties, clients will be able to withdraw their cash and will not lose their money. Whenever investors desire, they will be able to withdraw their funds without danger.
As part of the regulatory standards, regulated brokers will be required to keep separate accounting for segregated money. This allows for a better understanding of where funds are located, enabling the fast repatriation of clients’ funds in the case of a liquidation event.
- High levels of trustworthiness and adherence to rules
Personnel of MAS-regulated Forex brokers must be qualified in the money markets, and brokers must furnish a list of their staff and qualifications before beginning their business in Singapore.
Brokers will also be required to publish information on their range of trading products, such as Forex, futures, stocks, and options, that they offer to clients.
Regulated brokers are also required to follow adequate bookkeeping and accounting processes to guarantee that their business operations do not interfere with the mobility of their clients’ funds because of the rigorous guidelines.
This means that not only is the money of clients safe and secure, but the organization is also solid and practical in terms of operations. Customers will have more confidence because of this since they will receive effective order execution as well as a seamless trading experience.
- Transparent & Dependable Trading Procedures
Your broker’s transparency is critical. This includes performing transparent deals and providing detailed disclosure of charges and trading spreads.
This also entails being open with the MAS about their trading activity, such as the margins and leverage accessible to clients.
Transparent operations also include the broker’s commercial practices. One that is regulated will make sure that their promises and offers are truthful and, more significantly, do not mislead potential clients and traders.
- Excellent Customer Service
While all brokers should strive to give the best possible customer service and support, regulated brokers are more incentivized to guarantee that their clients are happy with the service they are receiving.
MAS assists customers in resolving issues with regulated brokers and provides a channel for customer feedback. As a result, regulated brokers strive to deliver exceptional customer service to their clients. This covers important components of the Forex trading experience, such as:
- Getting your trading account up and running, as well as funding it
- Troubleshooting any technical trading issues, you may have on the platform
- Providing you with vital trade information, such as spreads and available trading platforms
Forex trading is a fast-paced environment, and a lack of dependable customer service can cost you money and effort.
You may be assured of a better and easier trading experience if you choose a regulated broker that offers 24-hour customer service during trading days.
There is no doubt that working with a licensed broker rather than an uncontrolled broker benefits investors. To assist investors in determining a broker’s regulatory compliance, most regulatory authorities maintain an online database that investors can use to determine whether that agency genuinely regulates a broker.