The benchmark for quality work in the FOREX market for financial companies is the great Western brokerage house. Serious investors choose them and, in the first place, for reasons of reliability. In many ways, these preferences are due to psychological reasons. The bankruptcy of the giants of the American and Swiss currency market has led many who operate currencies around the world, a new way of looking at the question of choosing a broker. So what should we look for when we decide to start cooperating with a financial company? Let's start with reliability. Reliable financial intermediary is generally considered as a broker with a long work history, license and is supervised by regulatory authorities, with:
- a system of insurance of the responsibility of the clients,
- a risk management system that works well within the company,
- a legal transparency,
- protection of contractual relationships.
At the same time, the company should still be quite respectable, although each of us understands this term in its own way.
What can the term of work in the market tell us?
In itself, the term of work does not guarantee anything: the large western companies mentioned above existed in the market long enough. You must understand well that it is a Forex broker and what it is for. However, the risk of losing money in a one-day business is much higher than that of a broker who provides access to their customers to the financial markets for more than a year. A long history of work is the refined mechanisms of risk management (otherwise, the company would have already gone bankrupt), qualified personnel, reliable partners, financial reserves, etc. In short, a company with a work history has advantages over newcomers to the market. Documents and regulatory bodies. Unfortunately, as the practice shows, the availability of licenses and the control of regulatory organizations, whether state or industrial, does not guarantee the security of your money either. However, this is a great advantage when choosing a broker.
It's worth paying attention to the licenses
First, the licensing process itself cuts the scams. The company is obliged to reveal to the state its owners, to provide legal documents, financial statements. In addition, the regulatory authorities in one way or another control the operational activities, the financial performance of the company. Second, there is always an organization where a client can appeal with a complaint or a grievance. Therefore, in the United States, brokers in the Forex market are supervised by the CFTC, a government commission in the state of a federal agency. In England, this is the FSA (Financial Services Authority). So, when choosing a broker, it pays to pay attention to the licenses you have, who issues them and for how long. In case of placing considerable funds in the corridor, it is not superfluous to ask what guarantees the security of your funds will provide to a broker.
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