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There are more Forex brokers available on the internet than you think, with each broker providing a whole different set of services. There are so many different offers, promotions and bonuses available across different brokers. Each broker will have different capabilities, terms, conditions and features. Of course, every broker will also have their own unique trading platform. However, although there is quite a diverse supply of Forex brokers on the internet, not all of them are regulated.

Not all traders and investors in the Forex market, actually know what a regulated Forex broker is. Regulated brokers are, to put it simply, regulated by regulatory agencies and/or organizations. Regulatory agencies and organizations serve to protect the general public from fraud, manipulation and abusive trade practices. Regulated Forex brokers are required to keep in touch with the regulatory authorities that they are associated with. It is highly recommended that you do not go to a broker that is not regulated.

Regulatory authorities have their own sets of rules and regulations the Forex brokers that they regulate, are required to follow. In cases of disputes between brokers and individuals, regulatory authorities are obliged to resolve these disputes. Individuals are also able to contact regulatory authorities themselves, in cases of:

- Poor performance

- Trading platform problems

- Bankruptcy

Individuals are able to file complaints and appeals to regulatory authorities too, whenever they wish to do so.

Many traders and investors in the currency market, know that their Forex broker is unregulated. Some don't know, some don't care and some don't even know what a regulated Forex broker is. It is advised that you educate yourself and be one of the few that are aware of regulatory authorities and the purpose they serve.

It's actually fairly easy to find out whether or not your Forex broker is regulated. Firstly, find out what country your broker is registered and based in. All good brokers will have their full address listed on their site and will give out the country that they are registered in. If your broker does not provide this information on its main website, you will need to inquire about this information. However, all good brokers will supply this information without you having to ask for it, so you should consider moving on if your broker does not already.

Remember, the regulatory authorities that are local to the country that your Forex broker is registered and based in, are the ones responsible for regulating your broker. Forex trading regulations differ from country to country and when it comes to regulated brokers, some countries will be more flexible than others. As already implied, different countries will also have different regulatory authorities. For example, in the US, there are two main regulatory authorities: the NFA (National Futures Association) and the CFTC (Commodity Futures Trading Commission). It is easy to make enquiries with the NFA and CFTC. You can easily find out about your broker's membership status, performance, history, regulatory records and financial reports.

In conclusion, it is important to find out whether or not your Forex broker is regulated and it is also easy to do so. Although finding out might not be on your list of priorities, it will be worth your time in the long run, especially if your broker turns out to be a cheat.

How Forex Trading Works is a resourceful website that serves to deliver free, online content relating to Forex trading, to anyone and everyone.

By Matthew Vint