How Do You Compare Forex Brokers? – Regulations You Should Know

Comparing forex brokers is a crucial step in shortlisting on the final platform of your choice. While every platform has some pros and cons – pitting them against the other options will help you in a proper cost-benefit analysis.

For instance, the meta trader 4 download option is popular with online traders these days. Why is that? This is because the platform offers better safety features, no deposit and withdrawal fees, fast execution, and brokerages than others.

Through this blog, readers and online traders will get to know specifically more about these regulations and some brokerages that are a great filter when comparing forex brokers. Read on.

Regulations and Licenses

This is the make-or-break step when you compare online trading platforms in today’s day and age. As technology advances, so are frauds, and trading on a licensed and secure platform will save you from these worries.

Here are some of the primary licenses that the majority of these online trading platforms like MetaTrader 4 download have:

ASIC

ASIC stands for Australian Securities and Investments, a government organisation that monitors online trading platforms. This is an independent commission under the Australian government, which is given the role of the national corporate regulator.

The organisation regulates the companies and financial services to enforce laws for more information the protection of investors, consumers, and creditors.

FCA

Next up, you have the FCA or Financial Conduct Authority in the UK, which manages the operators for about 51,000 financial services firms and the money markets. Although the FCA operates independently of the British government, it is financed by the fees charged to the finance industry members.

FSCA

FSCA, or the Financial Sector Conduct Authority, comes under the jurisdiction of South Africa. It is a financial institution market conduct regulator and the next in line to the Financial Services Board of the country.

The main motive of this organisation is to better the integrity and efficiency of financial markets, ensure there is a level playing ground for all the financial institutions, and inform the public of all things finance.

CYSEC

The CYSEC, or -Cyprus Securities and Exchange Commission, In the simplest of sense, it is the financial agency of Cyprus.

It is supervised by a seven-member board beginning with the chairman and vice-chairpersons, who are aimed at better management of financial institutions.

Since CYSEC is an EU member state, all the regulations and operations are followed concerning the European MiFID financial harmonisation law.

IFSC

The Financial Services Commission of Belize is the regulatory body for all the primary financial services apart from banks. This government agency regulates all financial market participants, different exchanges, and the setup and enforcement of financial regulations in the country.

Brokerages

Brokerage refers to the commission or the fee charged by a broker. Since the blog discusses online trading platforms, here are some typical brokerages offered to clients that you can check to compare your options.

• No commission account spreads from EUR/USD
• Commission account spread from EUR/USD
• Commission (per 100K traded side trip)
• Minimum deposit
• Volume Commission Rebates
• No inactivity fees
• Funding methods
• No deposits/ withdrawals fees

Wrapping Up

There is a world of ways to compare online trading platforms, and you must do so!  Apart from the categories mentioned above, you can also check the online reviews and the number of clients to understand whether the platform is recognised. All in all, you must invest your time in researching the broker page before you invest money there.