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Forex Trading in the UK can be quite lucrative especially if you use the right strategies. This begins by choosing a broker prudently. While making the choice, some of the factors you ought to look at the reputation and past performance of the broker. You should also keenly examine the commission rates to determine whether they are worth your while. However, the ultimate consideration should be regulation. If you go into business with a broker that is not regulated, then you are taking a huge business risk.

So, who is a Regulated broker?

This is an individual or a brokerage firm that is recognized and regulated by the relevant regulatory bodies. Dealing with a broker who is well-regulated, means that you will be protected fraudulent activities in the financial market. Moreover, regulatory bodies are actively involved in making sure that consumers are not ill-informed as while venturing in Forex Trading.

In the UK the body that regulates Forex trading including bitcoin is the Financial Conduct Authority. This body is tasked with the responsibility of safeguarding all the players in the financial market industry. They set policies, guidelines, and standards that all the parties have to adhere to. Periodically, the Financial Conduct Authority carries out an audit to ensure that the Forex brokers https://fxdailyreport.com/fca-uk-forex-brokers-regulated/ are operating within the required legal threshold.

What are the benefits of Forex Trading with FCA UK regulated brokers?

• Credibility

The FCA policy demands that all the regulated brokers are required to submit their financial reports to the relevant authorities such as the FSA. These reports are scrutinized to ensure that the brokers remain credible. So, if you are working with a regulated broker you are definitely protected. In addition, if any disputes arise between you as the investor and the broker they can be settled in a fair manner.

• Your money is safe

Some of the important rules set by the FCA stipulate that a brokerage firm’s money should be separated from the investor’s funds. Therefore, the funds should be held in separate accounts always. In case a brokerage firm gets into a financial crisis it cannot use the client’s money to solve its own financial issues.

In case of bankruptcy, the investor funds cannot be used to pay the brokerages firms creditors. The priority is to compensate the investor first. As a Forex Trader, you will be more comfortable and secure knowing that your money is in the hands of a regulated broker.

• Safeguards the value of the security to promote safety for investors

Just because a broker has obtained the required from the FCA does not mean that the body will not keep an eye on his firm. The fiscal reports are one of the methods used by the FCA to ensure continued adherence to its policies by the broker. What does this mean for the trader? Brokers need to trade in a way that seeks to increase the investor’s security. In fact, it is not expected to decrease.

If the FSA realizes that a broker is decreasing the security, it can take the necessary action against the brokerage firm. Moreover, such misconduct can warrant the FCA to revoke a broker’s membership.

• Increases the chances of a Forex Trader profitability

As a trader, you have a better of making a profit by dealing with a Forex broker who is regulated by the FCA. This is because this body follows up and monitors the broker to ensure that they are providing the recommended tools to help you trade easily, these tools include software and relevant information.

It is the responsibility of the brokerage firm to provide proper training to the trader. The FCA inspects the quality of training that the broker is offering the clients. Besides that, it also provides support to these firms so that they can serve you as expected. This, in turn, makes it easy for a trader to not only participate with the utmost ease but also do it in a profitable manner.

• Transparency

Transparency is extremely important in Forex Trading https://bestforexbroker.online/what-is-forex-trading-and-how... . A brokerage firm is expected to always provide accurate information to the investor. This is because such information helps an investor to make informed decisions pertaining to the business transactions. The FCA gives a Forex Trader the platform to complain in case he feels that has been misled by the broker. However, the broker has to be regulated for the FCA to intervene.

If you want to have a smooth sailing Forex Trading experience, it is imperative that you use an FCA regulated brokerage firm. This will give you the protection you need to thrive in Forex Trading.
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