How To Find Excellent Foreign Exchange Margin Dealers

Now that the state does not allow domestic enterprises to establish foreign exchange margin trading brokerage business, if you want to conduct foreign exchange margin trading, you must go abroad to look for foreign exchange margin trading brokers to open trading accounts.

The security of your funds abroad has become the most important issue. How to prevent international financial fraud is also a matter of great importance.

In the world, there are three countries or regions that are the most stringent regulation on the safety of clients of foreign exchange dealers, and the most strict rules of trading rules. Therefore, we hope that we must find traders who accept government regulation in these three countries and regions to open accounts.

The four countries or regions are the United States, Britain, and Hongkong, China.

Their government regulators are:

U.S.A

Federal Commodity Futures Trading Commission, referred to as CFTC

Official website address: www.cftc.gov

Federal Futures Association NAF

Official website address: www.naf.futures.org

Britain

Financial Services Authority FSA

Official website address: www.fsa.gov.uk

Hong Kong

Securities and Futures Commission SFC

Official website address: www.hksfc.org.hk

If traders in these countries or regions get permission from the above government agencies, the security of funds is guaranteed.

If it is not clear in other countries, it is not necessarily unsafe, but personally, I do not think it is safe enough.

As a world economic power, the US dollar also has a great impact on the whole world.

Therefore, as a foreign exchange paction, the United States is also a major trading market, and it has the largest foreign exchange margin dealers.

Moreover, the world is relatively well-known, and large scale traders are mostly in the United States.

Coupled with its relatively sound supervision and perfect legal system, it should be a good choice.

Many friends may not understand the regulation of foreign exchange dealers in the United States. Here are some legal instructions on the official website of CFTC and NAF, which are provided by US regulators.

US foreign exchange dealers application and supervision system

1. the signing of cooperation agreements between foreign exchange dealers and banks and the development of international foreign exchange margin trading business must establish Trust Account, which will bear the risk of customer accounts caused by foreign exchange dealers' bankruptcy.

2. a cooperation agreement between foreign exchange dealers and insurance companies shall be signed, and the international exchange margin trading business must be undertaken by the insurance company as a result of the risk of the customer account caused by the failure of the agreement bank.

3. foreign exchange dealers provide asset assessment certificates, detailed business plans and regulatory plans, with agreements signed with banks and insurance companies, and apply to NFA (Futures Association) and CFTC (Commodity Futures Trading Commission).

4.NFA and CFTC require their respective banks and insurance companies to provide information to verify the accuracy and authenticity of the agreement.

5.NFA and CFTC approve the application of foreign exchange dealers, and require foreign exchange dealers and banks to deposit a specified number of risk guarantee deposits in the Central Bank of the United States to retain the final sanctions against foreign exchange dealers and banks.

6. foreign exchange dealers submit regular business reports to NFA and CFTC on a regular basis.

7.NFA and CFTC conduct routine supervision and regular supervision of foreign exchange dealers, agreement banks and contractual insurance companies.

Generally speaking, there are other rules. CTFC will regularly announce all foreign exchange dealers' assets statements and credit ratings, as well as irregularities, customer complaints and handling information.

Through the above laws and regulations, we can know that the US government agencies are relatively strict in guarding customers' capital accounts. First of all, the separation of customer margin and dealer account must be supervised by third parties, that is, a cooperative bank.

Let's look at the first item.

Then there is an insurance company to make credit insurance for this custodian bank. Let's look at second.

According to the American insurance law, the risk of insurance companies is the responsibility of the government.

Other large foreign exchange dealers also insured their employees with federal 14 insurance (employee loyalty insurance). If employees were embezzled or swindled, the insurance company would compensate the customers for their losses.

In addition, the serious violation complaints and final processing results of the dealers will be announced and will be kept on record forever. You can check them on the official website of CFTC.

When you choose a foreign exchange margin trader to open an account, you should pay attention to the following three points, which can guarantee the security of your capital account.

1. dealers must have official records in the US CFTC and NAF, obtain a business license, have official registration ID, and have no bad historical records in their records.

2. the procedures for opening accounts must be complete, and no contract can be signed to save all the entrusted agents.

3. funds must be pferred to the bank account specified in the dealer's contract by yourself. You must not entrust an agent.

This is the basic principle that can protect your capital security.

Now there are many traders who have capital account security in the United States. These companies can not worry about the security of funds without you.

But the safety of funds is not the best dealer, and the safety of funds should be the minimum standard.

Next, let's talk about selecting and screening dealers that are suitable for you.

1. speed and quality of quotation

Due to the pfer of paction data and instructions, the issue of quotation and matching, some companies quote only reference prices. In fact, the quotations we need must be a paction price. The reference price will often not be traded because the market is changing rapidly.

There are also some companies that have small burrs and slow response.

You can see that the dealer has a guaranteed commitment to run, such as FXCM, it has this commitment, as long as you hang up the order, if you run, you will be compensated.

Of course, most companies have done well in this respect, and some have made up for the running point in the quotation section.

It's not going to run on the trading platform.

Ha-ha.

But we need to pay attention to this problem.

2. dealer's customer service, we must find a Chinese service company, otherwise there will be some communication problems. When there are problems on the Internet, you can dial free international calls and use telephone to issue instructions or advice. If your English is not good enough, you'd better find a company with good Chinese customer service.

In addition, the attitude and speed of service can also be used as a screening standard.

3. the stability of the trading platform, basically every company has its own paction software, so the stability of this platform is very important. If the old can not connect to the server, or the server often does not respond, it is a troublesome thing.

There are many reasons for this. It may be the problem of the domestic telecom service department in your country, but it may be connected with the company.

In short, we can experiment with the free simulation paction software provided by these dealers to know if you have network problems.