angela.trninic Posted April 15, 2013 Report Share Posted April 15, 2013 Licensed and Regulated If the company does not belong to a recognised authority do not trade with them. Unlike some equity brokers, Forex brokers are usually tied to large banks or lending institutions because of the large amounts of capital required (leverage they need to provide). Also, Forex brokers should be registered with the Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTCT) National Futures Association (NFA) there are many other regulatory or licensed providers in various countries. Bottom line: Make sure your broker is backed by a reliable institution!(see: regulatory bodies) Liquidity Try to find out how big the company is, how long it has been operating, who is the money behind the business and liquidity providers. You will have to research this yourself, some people wish to remain anonymous within the industry, however, the company should be registered legally and disclosure should be provided. Quote Link to comment Share on other sites More sharing options...
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