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When choosing a Forex broker to trade with on the foreign currency markets there will probably be a number of criteria on which you base your decision. For example the dealing platform offered by the broker, the currency spreads and even the educational materials provided by the broker will probably all factor into your decision. However the most vital requirement that many new traders overlook is to ensure that the account they open is with a regulated Forex broker.

Not every broker on the market is regulated. In fact to become officially regulated a Forex broker must seek to join a regional financial authority. These bodies oversee the activities of member brokers in their region and ensure that they run their operations in line with a set of stipulated guidelines as set out by the regulator in the region.

These regularity guidelines apply to a wide area of the Forex brokers operations. Principally they require that a broker accepts to having its company financial activities monitored. This is achieved by the regular submission of accounts and financial records to the regulator for inspection. If the broker fails to submit the required documentation or adhere to any rule of membership, it risks a hefty fine, or in extreme cases, having its regulated status revoked.

In order to attain regulated status, a Forex Broker is required to meet and maintain a set of minimum standards. These cover not only its financial operations but also the way in which it deals with its trading clients. Other areas where the broker must comply with pre-set rules include the use of personal information client information and maintaining quality standards and fraud protection.

The benefit to clients of the broker maintaining financial transparency comes in the protection that this offers to any trading funds that they have deposited with the broker. With regulated brokers this money is required to be held in secure segregated client accounts.This ring fences these funds which are safeguarded and can therefore be returned to traders if the broker itself runs into financial difficulties.

You can find out if a Forex broker is regulated by visiting their website. Here most brokers will detail any membership details of regulatory authorities that they have gained membership of. Alternatively you can visit the regulators website itself to find a list of all the brokers that come under its jurisdiction. Try out the National Futures Association (NSA) for US-based brokers or the Financial Services Authority (FSA) for UK registered brokers.

Although there are undoubtedly many factors that will determine the choice of Forex broker you trade with, it is important in these uncertain times that you protect your trading capital by trading through a regulated Forex broker. In addition you will be protected from fraud and will gain a good level of service on your account. Without the fear of your trading funds suddenly being lost you will be able to concentrate your time on profiting from your trading.

Protect your trading and gain great service from Easy Forex, a fully regulated Forex broker.

Read more about this broker and how you can begin trading on Forex by opening a fully regulated account with this broker from just $25!

By Vernon L Lees
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