Unlike binary options brokers, for example, all forex brokers are subject to appropriate controls. In the first place, there are the respective state authorities, i.e. those supervisory authorities that are responsible in the broker’s home country. All Forex brokers must be registered with and approved by authorities. Therefore, these brokers are subject to strict laws and requirements, which must be strictly adhered to.
European countries have similar authorities that also cooperate. Thus, a comprehensive protection is guaranteed. In countries outside the EU, corresponding authorities are also responsible. A complete list of these, including the respective seals, can be viewed on the website. If a broker has one of these seals, you can assume with 99.9 percent certainty that these brokers have all the necessary approvals.
This also ensures that the respective broker is subject to comprehensive control. Fraud cases can be largely excluded here, even if a hundred percent security can never be guaranteed. An important seal is the approval is also CFTC, which is used in the U.S., because many brokers have their headquarters here. The CFTC and also the FSA seal are also used by brokers who have acquired a license for the American market. Thus, you can be doubly sure with these providers.
Why is Forex trading so popular?
Forex trading is a global market and can be executed anywhere in the world, so the research required for successful trading is also correspondingly extensive and large. By selectively using these services, many forex traders can save a lot of time on research. Technical analysis is also offered by various advisors.
Many forex traders prefer to use these unique schematic representations, so-called charting programs, which are provided on the forex market. Some forex brokers consider charting programs as one of the most important elements within forex tools. These charting programs can be very different and are either purchased, or offered as a free incentive by Forex brokers. Check out our forex broker comparison to get an overview.
Another reason why targets with a required number of pips can hinder overall performance is that investors are constantly out of step with the market this way. For example, if market conditions are good and investors’ strategies are working, then the targeted number of pips will be met quickly with a good profit as a result, so investors may achieve their goals faster than hoped. In turn, when market conditions are poor, investors are forced to make further attempts and trade more than originally planned in order to force your way back into profit, which in the end can only increase losses as market conditions are already unfavorable.
This leads to traders trading more frequently when market conditions are poor, and trading less when market conditions are good, because they have prematurely met the targets they set. This is not a promising strategy in the long run. Investors should focus primarily on those things over which they can have an impact. The goals should mainly revolve around consistently following the trading rules and sentiment driven strategies are generally not recommended in Forex. No one can control whether the trade will be profitable, but investors can make sure that they follow the rules and strategies that have an impact on the exchange rate and the forex market as a whole.
