List of Growing Forex Brokers
Forex brokers with 5 years of experience or less offer more stability with the advantages from their initial years still remained. Their passing from the first two years proves their promising and competitive edge. At the same time, they normally want to maintain some attractive features for new clients to attract even more clients. Therefore, traders looking for beginner-friendly trading conditions are usually more adept with these kinds of brokers if they are afraid of depositing their money in some freshly launched brokers.
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FCA-licensed forex brokers are generally considered trustworthy, because:
- The company has fulfilled FCA's minimum capital requirement. A dealer's license that allows the company to run a "market maker" business needs EUR730,000. An intermediary license where the company could facilitate STP execution needs EUR125,000. The cheapest is a restricted broker license in which the company cannot hold client funds, as it only needs EUR50,000.
- FCA will monitor the company continuously to ensure the segregation of client funds, monthly report and audit, efficient management including AML and KYC procedures, and proper risk disclosure for clients.
- FCA-licensed forex brokers are prohibited from manipulative trade practices, such as entering into positions against their clients. Brokers also should not make unrealistic promises or offering monetary benefits to encourage clients to take risky trading decisions.
- FCA-licensed forex brokers should not offer extreme leverage. Since mid-2019, FCA requires brokers to limit leverage on CFD trading between 30:1 and 2:1.
Continue Reading at UK FCA vs ASIC, Which Forex Regulator is More Reliable?
A good broker must be able to ensure the safety of the client's funds. Aside from obtaining licenses from trusted authorities, it's also important to have preventive measures that could save traders from doom. One of the easiest examples is negative balance protection, which ensures that traders are never in debt with their broker. In other words, the trader's balance will never be negative. This is why it's an important aspect that every good broker must have.
Some traders may not find this feature that significant, but it's something that many people would be grateful for. The truth is that there have been many cases where traders ended up owing money to their brokers. To prevent a repetition of similar events, the availability of negative balance protection can be very helpful.
Continue Reading at 5 Things to Rate in Forex Brokers Quality
A novice-friendly broker ought to have at the very least these seven (7) characteristics:
- Official licenses from the country in which the broker operates.
- Handy trading platform for mobile and desktop.
- Cheap fees.
- Excellent client services.
- Low deposit requirement and easy withdrawal processes.
- Straightforward registration processes.
- Superb educational resources.
Continue Reading at Is OANDA a Good Broker for Beginners?
Loyalty programs can keep traders staying and actively trading with their broker. Basically, the broker will give their clients rewards in many forms based on the points they accumulated through trading.
Some of the popular methods are cash rewards, gifts, lower spreads, bonuses, commissions, and many more. The idea is to keep the trader satisfied and continue to invest their money in the broker.
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