Need help to chose a good and regulated broker

Beginner Questions
1

Hi guys. I’m new in the trading business and would much appreciate if you guys would recommend me one or two good and regulated brokers.

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2

Welcome to the forum, David!

You are right to make regulation a priority when choosing a broker. The right choice also depends on where you live.

Forex is regulated by government bodies in major financial centers around the world. For traders who live in those major trading centers, it makes sense to focus on brokers regulated in their home country.

Traders who don’t live in one of those countries should consider brokers regulated in major financial centers appropriate for their region. For example:

  • In the US, forex is regulated by the CFTC and NFA, and brokers are required to maintain net capital of $20 million.
  • In the UK, forex trading is regulated by the FCA and funds are protected for up to £50,000 per client by the FSCS.
  • In Canada, forex trading is regulated by IIROC and funds are protected for up to $1 million per client by the CIPF.

Yesterday, we explained to another trader why FOREX.com UK could be a good fit, because he lives in Europe.

3

I live in the UK. So the most important thing for me is to check the FCA to see if a broker is regulated or not ?

For the moment i have been using a demo account for about 1 month just to learn.

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4

Yes, once you have focused your search on the well-regulated brokers appropriate for your region, then you choose from among those regulated brokers based on other important factors such as customer service, trading platforms, charting options, educational resources, research and spreads.

You can search the Financial Services Register for information on regulated brokers: https://register.fca.org.uk/

The FCA website also provides general information about their regulations: https://www.fca.org.uk/

You’re welcome to also try a FOREX.com UK demo account. In addition to currencies (Chinese yuan), it will provide you with access to trade commodities (Oil), indices (S&P 500), metals (Gold) and cryptocurrencies (Bitcoin).

5

Before internet brokers began popping up, traditional stockbrokers, like the ones I used to work with in the 1990’s used to charge an execution commission for executing your orders ‘in the market’, usually with market-makers.
There are some reputable online brokers that do still work on this model. Here is a list https://fx-list.com
Therefore I would suggest finding one of the very few brokers who do not want you to lose & only make money on the spread because they hedge every client position immediately on the exchanges on with banks. They actually want you to win and want you to be successful longer term, so you continue to trade allowing them to continue earning commission.