Demo Account Guide
Demo Account Guide
R
HOME / TYPE OF BROKER

Scroll for more details

Broker Regulation Specifications

Additional FAQ

FCA-licensed forex brokers are generally considered trustworthy, because:

  1. 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.
  2. 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.
  3. 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.
  4. 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?

Yes, it might be.

You may receive a phone call asking for more deposits or more frequent trade. This is possible as your contact information is accessible to the company.

Thus, your data may facilitate the broker to contact you by email or cell phone, urging you to be more speculative and increasing your risks in the market.

Continue Reading at Broker Red Flags: Signs You Should Leave Your Broker

The easiest way to check a broker's registration is to look at the bottom of their website or click the "About Us" button. Regulated brokers are required to include their regulatory information as well as proper risk disclaimers on their websites, so it should be easy to find.

The next step is to double-check the authority that regulates the broker. You just need to visit the website of the governing body and search for the broker's registration number.

Continue Reading at How to Ensure Your Broker is Trustworthy

  1. Alfa Forex owns dual licenses from Central Bank of Russia as well as CySEC. Therefore, they have sufficient legal background and compliant with the rules of client protection.
  2. FINAM facilitates trading for several asset classes, including forex, shares, bonds, options, and futures, aside from banking.
  3. VTB Forex proclaimed itself as the leader of forex market in Russia. The broker facilitates trading on 24 currency pairs (including rubles) through Metatrader5 with minimum transaction of 0.5 lot and maximum leverage 1:40.

Continue Reading at Best Forex Brokers in Russia