Choosing A Broker
Following on from my earlier post on selecting a broker, I thought these points were worth reiterating.
Check if your broker is regulated. If they aren’t, that should be a big red flag against using them. The main regulatory bodies are;
United States: National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC)
United Kingdom: Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA)
Australia: Australian Securities and Investment Commission (ASIC)
Switzerland: Swiss Federal Banking Commission (SFBC)
Germany: Bundesanstalt für Finanzdienstleistungsaufsicht (BaFIN)
France: Autorité des Marchés Financiers (AMF)
Canada: Autorité des Marchés Financiers (AMF)
Avoid anyone regulated in Cyprus, Vanuatu, St Vincent, or anywhere else where the “regulation” is not worth the paper it’s written on.
If possible, try to use someone regulated in your home country. At the very least, if something goes wrong you can take it up with a local regulatory body, law enforcement, fraud helpline, politician, or even get your local Watchdog-type TV programme involved. Difficult to do this if you’re thousands of miles away and don’t know anyone.
Don’t choose a broker based on who gives the biggest account bonus or cash back. If they need gimmicks like that to attract custom, they probably aren’t worth trusting your hard earned cash to.