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A good Forex broker will supply you with clients that were successful and can attest to the specific broker's qualifications and success history. Put yourself in that position, would you testify to someone's strengths if they did a poor job for you? Client history testimony should be present in any prospective Forex broker and plentiful to indicate a solid background with trading. You can tentatively assess a lot from a Forex broker with a list of clients that will speak up for the brokerage firm or individual broker. It should be noted that all word of mouth testimony should be taken with a grain of salt and dissected to collect the pertinent information. Testimony should be used in your research to find a Forex broker but should not be the deciding factor.
Another good morsel to test the reliability of any potential Forex broker is the amount of information, literature and lessons that they are willing to give to you. Most Forex brokers are of a high reputation and a solid background however, there are many out there that don't have a good history or no history and it is wise to steer clear of these brokers. You are trying to find a trusted financial advisor and settling for second best, just won't do. The more a potential Forex broker is willing to do for you in the area of helping you understand the Forex trading system, the better quality trader they will be for you.
A good avenue to travel down when seeking a good Forex broker is to ask your acquaintances about Forex brokers and how they met. This can not only give you prospective referrals to great Forex brokers but will also equip you with ideas and resources that you may not have located. If you get a referral from friends, be sure to still research that specific broker and his qualifications before committing to any formal agreement.
Saturday, July 12, 2008
Regulated Forex Brokers
Are you considering a career as a regulated Forex broker? Forex brokers work in the ever changing field of foreign currency, making millions for their customers. They also earn quite a bit of money in commissions for themselves, betting on which countries exchange rates are going to rise or fall in the future.
Who Regulates Forex Brokers?
Since Forex brokers work throughout the world in numerous different countries and cities, no single agency regulates all Forex brokers. Instead, brokers are regulated through the local brokerage regulation agency in their respective home countries. Hence, U.S. Forex brokers are regulated by the Securities Exchange Commission (SEC), the Federal Reserve System, the Federal Deposit Insurance Corporation, or the Office of the Comptroller of that currency.
Forex brokers located in Japan are regulated through the Financial Services Agency, while Forex brokers in Iraq are regulated by the Iraq Securities Commission.
What Rules Cover Forex Traders?
Trading on foreign exchanges is very different than trading on the NYSE or the Nasdaq. The rules for Forex trading are made by the National Futures Association. The majority of trades involve the major currencies: The American, Australian, and Canadian dollars; The Euro, British Pound, the Japanese Yen, and so on.
National Futures Association
Regulations such as these are set forth in the National Futures Association Retail Off Exchange Foreign Currency Rules. Included in these rules is information about assessments as well as dues, requirements for managing a Forex account, obligations of assignees, and an assortment of additional situations that arise throughout the course of trading.
The online website of the National Futures Association carries a wealth of information for the starting Forex broker as well as Forex Investor. There you will learn rules that govern Forex traders; Forex investor alerts; Forex requirements for reporting, notices to Forex members, notice of judgments interpreting the rules, as well as other resources for individuals who wish to learn more about Forex.
The website also furnishes links to resources for electronic filings needed to establish and maintain a Forex brokerage: promotional materials, exemptions, Forex reporting, complaints, and the annual questionnaire.
Be Wary of Unregulated Brokers
An increasingly pervasive problem that investors need to aware of is Forex fraud. The Commodity Futures Trading Commission approximates that customers have lost over $395 million dollars in fraudulent Forex schemes.
Who Regulates Forex Brokers?
Since Forex brokers work throughout the world in numerous different countries and cities, no single agency regulates all Forex brokers. Instead, brokers are regulated through the local brokerage regulation agency in their respective home countries. Hence, U.S. Forex brokers are regulated by the Securities Exchange Commission (SEC), the Federal Reserve System, the Federal Deposit Insurance Corporation, or the Office of the Comptroller of that currency.
Forex brokers located in Japan are regulated through the Financial Services Agency, while Forex brokers in Iraq are regulated by the Iraq Securities Commission.
What Rules Cover Forex Traders?
Trading on foreign exchanges is very different than trading on the NYSE or the Nasdaq. The rules for Forex trading are made by the National Futures Association. The majority of trades involve the major currencies: The American, Australian, and Canadian dollars; The Euro, British Pound, the Japanese Yen, and so on.
National Futures Association
Regulations such as these are set forth in the National Futures Association Retail Off Exchange Foreign Currency Rules. Included in these rules is information about assessments as well as dues, requirements for managing a Forex account, obligations of assignees, and an assortment of additional situations that arise throughout the course of trading.
The online website of the National Futures Association carries a wealth of information for the starting Forex broker as well as Forex Investor. There you will learn rules that govern Forex traders; Forex investor alerts; Forex requirements for reporting, notices to Forex members, notice of judgments interpreting the rules, as well as other resources for individuals who wish to learn more about Forex.
The website also furnishes links to resources for electronic filings needed to establish and maintain a Forex brokerage: promotional materials, exemptions, Forex reporting, complaints, and the annual questionnaire.
Be Wary of Unregulated Brokers
An increasingly pervasive problem that investors need to aware of is Forex fraud. The Commodity Futures Trading Commission approximates that customers have lost over $395 million dollars in fraudulent Forex schemes.
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