Forex brokers, firms or individuals assist you to perform trades in the world of the forex market. You can form a partnership with any forex broker irrespective of your location in the world and do your forex trades. If it happens you live in the UK and you are a beginner trader, you should know certain key features as far as forex trading is a concern. There are numerous forex brokers UK out there in the forex market and it is a huge challenge to choose the right one to form the partnership with.
If you live in the United Kingdom, it is necessary you choose a forex broker who has a local address and doing his/her operation in the local market. The Financial Conduct Authority (FCA) in In the U.K is responsible for regulating and overseeing all types of companies working in the sector of financial services which also includes forex trading. The main objective of this article is to assist you to understand the benefit of FCA UK brokers in forex trading.
What the Benefits of Trading Forex With FCA UK Broker ?
Unauthorized Brokers
Numerous unauthorized brokers perform their operation in the U.K. forex market. They even offer well-known businesses addresses. There are many beginner traders who get fooled by this because they opt to invest their money in these companies. They fool you by convincing that you can win more trades when you choose to partner and work with them. After you complete a few trades, they will cut their entire communications channel to you. Eventually, you will find it hard to establish any contact with them.
Therefore, before signing up with any forex broker in the United Kingdom, You should check is whether the number he/she registered by the broker is genuine and is found at FCA website. This will assist you to avoid becoming a victim of a scam.
Identify FCA UK Brokers
When you partner with the regulated FCA broker, you can be assured that your money will be secure and safe when the broker will be facing the financial problem. The main reason is that FCA UK brokers are always adequately capitalized and they put customers’ funds in separate accounts. That means your outcome will be more favorable and, you will be in a good position to get more profits in the forex trading.
You Are Important
For FCA regulated broker, you play an essential role in the forex business and, therefore, they will treat you with a lot of respect. FCA broker keeps the communication channel with you openly, they regularly correspond with you on a daily basis, and they try their best to meet customer needs every time. On the other hand, you can’t be confident that a broker who is not regulated will treat you in the same way. UK forex brokers who are not regulated do not treat customers with a real concern as they are not for them. Unregulated brokers are more interested in the customer’s money, and they entice you with unreliable bonuses. CA regulated broker, on the other hand, try hard to keep personal data and your identity secure and safe.
International Issues
Most of the brokers who are based from other countries may decide not to follow the rules of one jurisdiction and enter via the loopholes in other country’s laws. When you partner with those types of brokers, without looking at the background, the regulatory organization such as FCA can make things easy for you. The FCA would be in a perfect position to hand over the documents to the lawyer. This will assist you to minimize any loss you may incur. In addition, it assists to reduce the red tape impact.
Accountability
FCA brokers are bound to follow certain rules and regulation. Though you should not assume that the UK brokers most of time do everything in the right way, you can be assured which the FCA will take action against any erring brokers. Regulated brokers are needed to inform customers clearly about conditions and terms of trading before sign up for forex business.
Forex brokers who operate under regulatory FCA purview are also bound to offer you with the best forex rates either locally or internationally. This is because the UK brokers are in a good position to look at and compare more quotes quickly. This can also make the brokers to decide favourable trading decisions. On top of that, there is no scope for FCA regulated brokers to include any hidden fees to increase customers’ trading costs.
