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
- 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)
- Players that are not under oversight from any regulator may be fraudulent.
Do the following before building a relationship with broker
- Ask: Is broker regulated in any country?
- Ask: Does that country have strong laws governing finance and trading?
- Collect the registered name and registration number of broker.
- Ask: Who is the regulator?
- 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.
Check ASIC’s register for the company using the registration.
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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