• DAILY UPDATES
  • MARKETS
    • Forex
    • CFDs
    • Spot Metals
    • Indices
  • ANALYSIS
    • Fundamental Analysis
    • Technical Analysis
  • ARTICLES
No Result
View All Result
FTD Limited
  • DAILY UPDATES
  • MARKETS
    • Forex
    • CFDs
    • Spot Metals
    • Indices
  • ANALYSIS
    • Fundamental Analysis
    • Technical Analysis
  • ARTICLES
No Result
View All Result
FTD Limited
No Result
View All Result

Regulated Entities

October 13, 2020
in ARTICLES
Reading Time: 5min read
A A
Regulated and Licensed Forex Brokerage Company
0
SHARES
51
VIEWS
tweetpostshare

Working with a regulated brokerage company by a reputable authority will give traders confidence and security as it is an inevitable requirement to be monitored under a legitimate regulatory body.

One of the main criterias not to overlook while choosing a brokerage company among numerous entities is picking one regulated by a reputable authority. Regulated entities are required to comply with the financial services industry standards, rules, laws, regulations, that have been established by the international authorities with the purpose to provide secure trading, offering safety, reliability, and security for traders.

Forex Regulations are established in order to protect the interests of customers and to ensure fair and honest operations at FX brokers. Trading with Forex Brokers that are authorized and licensed by the most respected regulatory bodies such as, FCA, ASIC, CySEC, BVI & others, means that they have to meet strict financial standards and implement fair trading practices. Also,  the safety of your capital has the highest priority for regulated forex brokers, for these reasons they keep customers’ capital segregated from the company’s capital, work only with top-respected banks, and provide maximum transparency.

There are a lot of factors that need to be taken into consideration before choosing a brokerage company, such as commission rates, spreads, leverage options, etc. Nevertheless, you should not skip the most important aspect: is the broker regulated or not? Considering the fact that unregulated brokerages are extremely risky places for traders to invest in since in case of encountering problems, the traders might find themselves in a position where they will have very little recourse and may experience major financial losses.

Why Trading with a Regulated Broker is Important?

1.Safety of Capital

Fully regulated FX brokers are compelled by the law to keep customers’ funds in separate accounts at top tier banks. The segregated accounts that many regulated and reliable Forex brokerages offer are segregated accounts, meaning separate accounts for the clients and the company funds. Many regulators require opening of segregated accounts, in order to ensure that the customers’ money are not used for operational purposes, also verifying that the broker will fulfill withdrawal requests anytime.

2.Business Ethics

The rules and regulations are laid down to ensure that all regulated and licensed FX brokers handle and behave ethically towards their customers. In addition, they must provide quality services to their customers, meaning  fair pricing, quick and safe executions of orders, and transparency.

3.Leverage Limit

Another way to protect customers by regulated entities is by limiting the maximum leverage level provided. No one can argue the fact that leverage can be helpful since it lets you invest in higher volumes with min. amount of margin provided, making it possible to trade with higher volumes, but we always say it is a doubled-edged sword. Providing extremely high leverage, especially for beginners, can be tremendously dangerous for the traders, putting them at risk of losing more than the initial capital.

4.Protection from Fraud

Regulated and licensed brokers should not act in any manner that can affect their customers negatively. If any illegal practices are completed, it can directly attract penalties for the broker from the entity it’s regulated by or even a permanent ban from the industry, depending on the sort of action. If a licensed broker does not meet the rules and requirements set by its regulator, the regulatory bodies can take legal action, which can end up in the invalidation of the license.

5.Protection from Fraud

Regulated and licensed brokers should not act in any manner that can affect their customers negatively. If any illegal practices are completed, it can directly attract penalties for the broker from the entity it’s regulated by or even a permanent ban from the industry, depending on the sort of action. If a licensed broker does not meet the rules and requirements set by its regulator, the regulatory bodies can take legal action, which can end up in the invalidation of the license.

6.Anti-Money Laundering

In addition to all the personal benefits of working with a regulated entity, it also brings with it a legal benefit. Before opening an account for the individuals applying, regulated entities request documentation, such as photo ID or any kind of proof of address, in order to verify the personality. This kind of action, in its own ways, helps to prevent such crime that distress the governments around the world.

Under Which Regulatory Authority is FTD Limited Regulated?

FTD Limited is incorporated under the laws of the British Virgin Islands as a BVI BUSINESS COMPANY with registration number 1944994, licensed and regulated by the BVI Financial Services Commission (FSC) under Investment Business Licence number SIBA/L/19/1123.

Financial Services Commission is the Territory’s single regulatory authority responsible for the regulation, supervision and inspection of all financial services in and from within the BVI. The FSC was established in 2001 pursuant to the Financial Services Commission Act, 2001.

About BVI FSC:

BVI FSC, which stands for the British Virgin Islands Financial Services Commission, is one of the most respected regulatory bodies with responsibility for the regulation and supervision of all financial services operating in or from within the British Virgin Islands. The regulator was established in 2001  pursuant to the Financial Services Commission Act, 2001. It is perceived as a member of the classical trio of Offshore Forex – Belize, Seychelles and BVI.

The BVI FSC is responsible for matters, as protecting consumers, detecting financial crime, preventing market abuse, ensuring a proper regulatory environment, overseeing legislation and monitoring its effectiveness, improving public understanding about risks associated with different financial products, communicating with international authorities, and  consulting with the financial industry in respect  of regulations, policies, and practices related to supervision

Final Words:

Regulation plays an important role in ensuring that forex brokers abide by the laws and standards set, as well as ensuring that unethical practices are not followed. As such, to protect your interests, you should ensure that you choose and work with licensed and regulated brokers.

Regulation plays an important role in ensuring that forex brokers abide by the laws and standards set, as well as ensuring that unethical practices are not followed. As such, to protect your interests, you should ensure that you choose and work with licensed and regulated brokers.

Learn more about us

Tags: ForexFOREX BROKERAGE COMPANYLICENSED FOREX COMPANYREGULATED ENTITIESREGULATED FOREX BROKERAGE
TweetShareShareSend
Previous Post

White Label Solutions

Next Post

Technical Analysis: XAUUSD

Related Posts

Currency Intervention
ARTICLES

Currency Intervention

Economic Announcements play a vital role in determining the current economy of the world overall or a particular country.
ARTICLES

Key Economic Announcements

What is Elliott Wave Theory?
ARTICLES

Basics of Elliott Wave Theory

algorithmic trading
ARTICLES

Algorithmic Trading Series – Introduction to Algorithmic Trading

Slippage effect can have negative impact in trading.
ARTICLES

Slippage Effect: What It Is and How to Avoid it?

chart patterns in trading
ARTICLES

Chart Patterns

Next Post
Technical Analysis: XAUUSD

Technical Analysis: XAUUSD

You might also like

Tuesday, November 3, 2020 Headlines

Friday, January 22, 2020 Headlines

eurusd technical analysis

EURUSD is Forming an ABCD Chart Pattern

A Short-Term Technical Outlook for USDJPY After BOJ

A Short-Term Technical Outlook for USDJPY After BOJ

Tuesday, November 3, 2020 Headlines

Thursday, January 21, 2020 Headlines

What to Expect from the Day of Central Banks?

What to Expect from the Day of Central Banks?

Tuesday, November 3, 2020 Headlines

Wednesday, January 20, 2020 Headlines

Recent Posts

  • Friday, January 22, 2020 Headlines
  • EURUSD is Forming an ABCD Chart Pattern
  • A Short-Term Technical Outlook for USDJPY After BOJ
  • Thursday, January 21, 2020 Headlines
  • What to Expect from the Day of Central Banks?
FTD Limited

The content of the site is presented for informational purposes only not to give any investment advice which mainly focuses on financial instruments such as Forex, Spot Metals, CFDs, and Indices.

MENU

  • DAILY UPDATES
  • MARKETS
  • ANALYSIS
  • ARTICLES

Latest Articles

  • Friday, January 22, 2020 Headlines
  • EURUSD is Forming an ABCD Chart Pattern
  • A Short-Term Technical Outlook for USDJPY After BOJ

Subscribe to our newsletter and get notified about the next update.

    © 2020 FTD Limited

    FTD Articles is a website prepared by FTD Limited's research team. FTD Limited is an online brokerage company offering products of Forex, Spot Metals and CFDs.

    The ideas and the information shown here have no responsibility of any of the trading decisions made by the investors or the visitors of this site. Therefore, under no circumstances will FTD Limited nor FTD Articles be held responsible or liable in any way for any claims, damages, losses, costs or liabilities resulting or arising directly or indirectly from the use of website content. We recommend that you seek advice if you have not involved with trading before in order to prevent potential risks that may arise.

    No Result
    View All Result
    • DAILY UPDATES
    • MARKETS
      • Forex
      • CFDs
      • Spot Metals
      • Indices
    • ANALYSIS
      • Fundamental Analysis
      • Technical Analysis
    • ARTICLES

    © 2020 FTD Limited

    FTD Articles is a website prepared by FTD Limited's research team. FTD Limited is an online brokerage company offering products of Forex, Spot Metals and CFDs.

    The ideas and the information shown here have no responsibility of any of the trading decisions made by the investors or the visitors of this site. Therefore, under no circumstances will FTD Limited nor FTD Articles be held responsible or liable in any way for any claims, damages, losses, costs or liabilities resulting or arising directly or indirectly from the use of website content. We recommend that you seek advice if you have not involved with trading before in order to prevent potential risks that may arise.

    Welcome Back!

    Login to your account below

    Forgotten Password?

    Create New Account!

    Fill the forms below to register

    *By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
    All fields are required. Log In

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In
    This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.