Forex trading is a global phenomenon and can provide investors with the opportunity to make solid returns on invested capital, with each trade. However, the minimum investment requirement in the forex market can be prohibitive, which may force investors to seek out a forex broker who can offer lower minimum deposits or an affiliate program that allows investors to share in other investors’ commissions. The following list of reputable and regulated forex brokers for 2022 is based on research by Traders Union’s experts.
If you are searching for the best forex broker, then you have reached the right place. You have probably already heard about those rogue brokers who scam people. Oftentimes, these scammers use celebrity endorsements and other tactics to lure in customers. While your goal is to find a reputable forex broker, you might end up running into some of these rogue brokers which make it hard to get information about legitimate ones which offer forex trading. In this blog, we are presenting the best regulated forex brokers from Trader Union.
What is Forex Trading
Forex trading is the buying and selling of foreign currencies, which are traded in pairs. For example, you can trade the USD for EUR or USD for GBP. The market where forex trading takes place is called the foreign exchange market or forex market for short.
Regulated vs Unregulated Forex Brokers
The main difference between a regulated and unregulated forex broker is that a regulated firm has to comply with various regulatory requirements issued by their local financial regulator while an unregulated broker is not required to do so.
All of our recommended brokers operate under a global license and are subject to various regulatory requirements, which help ensure client funds are safe and secure.
A reputable broker will always be registered and regulated by a trusted authority. By choosing a regulated forex broker, you can avoid the risk of being scammed by brokers who are just out to get your money but do not really have the capacity to provide you with the financial services you need.
A regulated broker is one that has been vetted by the relevant financial authorities and can be held accountable for their actions.
Because they must meet specific regulatory requirements, you can be sure that a regulated broker will not run away with your money. They also have to adhere to strict rules regarding trading conditions, customer support, and dispute resolution.
Consider Regulation While Choosing a Broker
The first thing a Forex trader should have in mind when choosing a Forex broker to work with is the security of their money.
When choosing a Forex broker, regulation is the first thing to check. It is essential that you trade with a regulated broker so that your money is safe.
A regulated broker must follow certain rules set out by the regulator to ensure client funds are safe. These rules include keeping clients’ funds in segregated accounts, reporting requirements, and regular audits by external auditors.
On top of that, most regulators provide a compensation scheme in case the broker goes bankrupt or runs into serious financial problems. This way traders can get some of their money back if something happens to the broker.
Why You Should Choose Regulated Brokers
Just like with other products, there are Forex brokers who do not operate in a responsible manner, and it is, therefore, important to choose your broker carefully. The most important point to look for when choosing your Forex broker usually relates to the jurisdiction under which they are regulated. The FX industry has been plagued by unregulated scams that target unsuspecting traders looking for opportunities to earn money in the markets. This is especially true as the Internet has made it easy for scammers to reach potential victims all over the world.
For this reason, it is important to find a reputable and regulated broker that will not scam their clients. Forex trading is extremely popular with retail traders due to the ease of access and hedging opportunities it provides to retail investors. Forex brokers can offer a range of leverage amounts depending on the broker, such as 50:1 or 200:1. The ability to select the leverage a trader desire enables better control of risk.
Top 5 Regulated Forex Brokers 2022
Below are the top 5 most popular and regulated currency trading brokers for 2022. This list was created by Traders Union after evaluation from experts. You can also check fbs copy trade review from Traders Union.
- Admiral Markets
- XM Group