EuropeFX Academy Will Help You To make the right Choice
While it is clear that you should have a broker, not everyone knows which type is best. EuropeFX Academy will help you understand it. There are both regulated and unregulated brokers that facilitate trades on the market. For example, EuropeFX is a regulated broker, whereas other online traders may not be. Learning more about the differences between the two approaches to trading can help you decide if a regulated broker is right for you.
Responsibilities of a Regulated Broker
Regulated brokers must comply with the terms and responsibilities associated with government-enacted legislation. This typically means that these types of brokerages, including EuropeFX, are held to high standards. Regulated brokers are also held to high legal standards. This means that if something goes wrong with the firm and your investment, you have a legal recourse available to you. Investors should note that the rules brokers must comply with were set out by the government with the investor’s best interest in mind. Brokerages that opt to be regulated often do so at a slight financial loss to them, prioritizing their clients’ needs over their own.
Can Unregulated Brokers Work?
First-time investors may be drawn to unregulated brokers, as they often offer lower fees and minimum investments. However, this is often to your detriment. Unregulated brokers are not bound by the same strict rules as those who are regulated, which means there is very little oversight to their industry. As a result, they could lose thousands of dollars in a bad investment, and you may have very few options available to recoup your funds. There are some instances where dealing with an unregulated broker may be to your advantage. If you and your regulated broker have an interest in an investment with a foreign country, you may be forced to interact with an unregulated broker to ensure that the deal gets closed. However, it is always advisable to seek out regulated options, such as EuropeFX, before turning to unregulated sources.
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