Monday, November 24, 2008

Is your broker established and regulated?


It is extremely important to know whether the broker you want to choose, is established and regulated or not. Choosing an established broker can confirm you about his reputation and the amount of expertise he has about the market.

A regulated broker will ensure credibility in your trade. This is because of the fact that every regulated broker has to present his fiscal reports to the regulatory bodies, such as local regulatory bodies like NFA (National Futures Association) or FDF (Swiss Federal Department of Finance) for US traders and brokers.

These reports, if failed to be presented, can give these bodies the right to penalize them to the extent of even expiring their market membership as a broker. Such stringent rules and orders compel all these Forex brokers to maintain see-through fiscal reports. Also, such regulations on brokers facilitate the traders and depositors to trade safely, hence increasing their overall investor security.

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