The Forex market basically refers to the largest liquid financial market in the world at the moment. It is a platform in which people, institutions and governments can buy and sell currencies. People, institutions and governments on the forex market basically make money by buying a currency at a low price and in turn selling it to another interested buyer at a higher price than it cost to obtain, hence enjoying the profit that lies in the price difference of buying and selling.
The Forex market is open for five and half days every week, twenty-four hours a day. This is due to the fact that Forex traders can be found throughout the world. This means that you will find a trade going on at any time you choose the five and a half day period.
Who is a Forex trader ?
Forex trading will involve the simultaneous buying of one currency while selling another. It is more or less a currency swap that is done at a time of your choosing. The more times you swap at just the right moment, the richer your coffers will become. While it is entirely possible to buy currency directly from the seller and sell currency directly to the buyer, it is more expedient to use a best forex broker for the job.
This is due to many factors, such as the fact that not everyone who trades in the Forex market actually does that for a living. It is also important to point out that not every Forex trader has the best knowledge and the right tools to take advantage of the market and make a profit at the end of the day. This is the gap that Forex brokers are striving to fill.
Why Forex brokers need to be authorized and regulated
There is a need for a financial conduct authority to regulate and authorize brokers and firms in all capital market trading platforms. This is due to the fact that brokers and other intermediaries have been placed in an extraordinarily high position of trust by the public. This means that it is very easy for unscrupulous people to take advantage of this trust and fleece innocent people of their hard-earned money.
An FCA regulated Forex broker is a broker or a brokerage firm that has passed all the requirements set by the financial conduct authority and is therefore assumed to be able to discharge their duties with integrity. FCA authorization and FCA regulation of Forex brokers helps keep the market sane and safe from willful predators.
The Benefits of Regulated Forex Brokers UK
Getting involved in the Forex market can be a very exciting time in an investor’s life. Even if you have never taken part in this type of trading before, it is a relatively easy thing for you to learn the basics, although there is always going to be something that you will be able to improve on. The Forex market is available five days a week on a 24 hour a day schedule so it makes it one of the most accessible forms of trading that are available. Even with all of this, however, many people don’t realize that the Forex market is not open to the public. In order for you to begin trading, you must go through one of the Regulated Forex Brokers UK that are available.
Choosing a broker is a very important part of making sure that the trades that you are going to make will be successful. Although many of the Regulated Forex Brokers UK are able to give you advice as far as the trades that you make, many times they are just there in order to help you to place the trades on the market. That is because there are a lot of software programs that are available which help individuals to be able to recognize trends and indicators within the Forex market that will identify successful trading patterns. Even so, it is still possible for you to talk to your broker in order to get advice, especially if you’re just starting out.
Even if you use one of the online Forex trading systems, there is still going to be Regulated Forex Brokers UK who are behind it all. These are the people that actually make the trades and have the authority to set up the systems which will allow you to buy and sell within the Forex market. Most people don’t give much thought to this entire process and they just use whatever system is available. Going with one of the Regulated Forex Brokers that are going to be around for the long term, however, can help you to avoid some sticky situations that may happen to you in the future. After all, the last thing that you would want to have happened is for your broker to decide to disappear on you or perhaps claim bankruptcy in the middle of making one of these trades for you.
The Other advantage is that the traders also have safety assurance of their trading capital in case broker issues arises. These issues are such as insolvency or bankruptcy. The FCA regulated FX brokers have a role to safe guard their customers as per the Financial Services Compensation Scheme (FSCS). This scheme (FSCS) aims at providing protection for all its traders from broker-related issues through the provision of a guaranteed compensation of up to £85,000. Traders are liable to full compensation of their capital up to £30,000 as well as a maximum of 98% for the remaining amount for a maximum of £85,000 in the case of broker liquidation. The FCA is beats all its competitors for the provision of such a compensation scheme to its investors. The compensation incentives are not common with the others brokers across the world.