When searching for a broker, there are many different things you want to look for. One of the main things you want to look for is to see if the broker is "Regulated" or "Non-Regulated." An FCA regulated broker is always the best option to go with because it will give you a piece of mind that your funds are safe.
The question of what are the biggest differences between regulated brokers and non-regulated brokers is a crucial and severe one, and it is also one which not all traders are taking into account. Yes, there has been some research was done which suggests that a significant percentage of all investors do not know whether they are dealing with regulated brokers or non-regulated brokers when they are trading in the Forex market. This is very disturbing since regulation is a process which seeks to maintain and ensure decent, fair and ethical behavior in the business. Whether your broker is regulated or non-regulated is an important matter, one too important to ignore.
At the most basic level, it is a fact that regulated brokers have to operate in a manner that complies with the regulations that are set down by the relevant Forex regulator they have. The non-regulated brokers are not so obliged so they can do as they please. The regulated broker must be licensed and registered in the country where the business has its base. Regulated brokers are bound to meet the standards of quality control specified by the Forex regulating authority for that country and this, in effect, means that standards of quality control will be fulfilled. The non-regulated brokers are not so licensed nor are they so registered, which means that they do not necessarily apply the national standards of quality control to the trades their clients take.
This is the fundamental difference between regulated brokers and non-regulated brokers, the matter of ensured quality control. You might ask about the nature of this quality control. What does it involve and why is it so important? The answer can be given quite simply. Regulated brokers are audited on a regular basis, and their business practices are subject to careful, proper scrutiny. In this way, they are forced to follow the standards and rules which have been specified for them by their national Forex regulatory authority. As an example of this, regulated brokers in the Forex industry are obliged to keep available sufficient funds to complete their clients’ foreign exchange transactions. They must also keep sufficient funds available to return to their client if the business becomes bankrupt. The non-regulated brokers, who are not subject to regular audit and appraisal, are not bound to do any of these things which can leave the client behind with nothing but questions as to where their money went.
So we could say that the fundamental differences between regulated brokers and non-regulated brokers are matters of ensuring the security of the client's funds. We should remember that just because a broker is not licensed or regulated does not mean that it does not follow the industry standards. It simply means that no-one is watching the brokers to ensure that they do comply with the regulations set down by the relevant national body. Therefore, there is more risk involved in dealing with non-regulated brokers than there is in dealing with regulated brokers. This is not the same risk as that which comes with any Forex trading or with any trading of financial instruments. As we saw with our two examples above, a trader who uses regulated brokers should always be sure of having his foreign exchange transactions honored, even if his broker is about to go under. Having this security can give the trader a piece of mind in knowing that no matter what their funds are always safe and secured.
Below you will find our preferred brokers. With these preferred brokers, you will be receiving better spreads than the general public, better minimum deposits, lower commission rates, the same account leverage as the rest of the team which they don’t offer to the general public, better entries and top of the line customer service. All the things listed previously are not provided to the general public and are only available via the links below. FCA is now cracking down on all regulated brokers and making sure their clients are appropriate for the market before being accepted. Please be advised that when filling out the application questions the brokers may have and you put you do not have experience, have never traded or left questions blank you may not be accepted due to FCA regulations. Fill out the applications to the best of your ability, with care and caution.
PLEASE READ ALL OF THE ABOVE INFORMATION BEFORE REGISTERING WITH ANY BROKER!!!
VIBHS MAURITIUS - Leverage 1:1 - 1:400 - FSC Regulated
Demo account - https://www.vibhsfinancials.mu/demo_account/?wsref=776j3v77
VIBHS U.K - Leverage 1:1 - 1:30 - FCA Regulated ( U.S.A CLIENTS NOT ACCEPTED )