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How to pick the right forex broker to be your trading partner

Be selective who you trade with

Encountering and managing risk is part and parcel of trading. Risk comes from the market but can also come from trading with wrong brokers. Place your money with the wrong company and it can disappear pretty quickly.  There is no reason to expose oneself to un-necessary risk when there are regulated forex brokers to choose from.

 

Understand (un-necessary) risks associated with unregulated brokers

  1. Unregulated brokers may be errant players that have unsound practices such as co-mingling customers’ trading funds with those that belong to the company (financial systems are not perfect – even regulated brokers may have errant practices e.g. MF Global)
  2. Players that are not under oversight from any regulator may be fraudulent.

 

Do the following before building a relationship with broker

  1. Ask: Is broker regulated in any country?
  2. Ask: Does that country have strong laws governing finance and trading?
  3. Collect the registered name and registration number of broker.
  4. Ask: Who is the regulator?
  5. Check whether broker has a valid registration with regulator.

 

How to check if there is a valid registration

For example AXITRADER is regulated by the Australian Securities and Investments Commission (ASIC). Look up Axitrader’s registration number from its website.

Find out where your broker is regulated and take note of the registered company number. Usually found on the footer of their website.

Find out where your broker is regulated and take note of the registered company number. Usually found on the footer of their website.

Check ASIC’s register for the company using the registration.

Check on the regulator's website to determine if the broker is accredited.

Check on the regulator’s website to determine if the broker is accredited.

 

Some observations we would like to share

Singapore and Australia are two countries in Singapore that have reputable regulators. Regulated forex brokers in Singapore are listed in our website here and updated yearly.

AxiTrader is an Australian broker regulated by ASIC that has a large footprint in the region. If you would like to sign up with AxiTrader, use this link:

 

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Last time, many things that I wanted were just dreams, now I see them as possibilities. I’m looking forward to own pent-house suite in Manhattan overlooking Central Park because forex trading with Tflow® makes it possible. Find me on Google+

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