How Can Traders Make Use of Forex Regulatory Bodies to Secure their Forex Investments?

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Unfortunately, many retail forex traders do not make the websites of the forex regulatory bodies their first port of call when they want to start forex trading. They only check on the regulators when something has gone wrong along the way. So it is not just about how to trade forex; it is about securing your investment before you even get into the market. The broker is the entity that keeps traders’ funds in trust as they trade the market. So traders need to know who they are dealing with before they open accounts and deposit money with them.

In case the trader did not do the required check on the broker beforehand and feels that he or she has been shortchanged by the forex broker, there are ways to seek redress.

• An official complaint should be filed with the regulatory body which covers the jurisdiction where the broker is located.
• If the forex broker is regulated and licensed by a forex regulatory body, an investigation will be carried out. If the broker is found liable, enforcement action will be carried out.
• Forex regulatory bodies carry out different kinds of enforcement action.
• In the year 2014, CFTC slammed FXCM with a total of $14 million in fines and restitutory charges for unwholesome market practices against their clients, some of which included stop hunting and price manipulations. As of 2017, FXCM has been shut down and permanently banned from operating in the United States after the company was found guilty of the same charges. So it is possible for traders to get their stolen monies back.
• Some regulatory bodies have been known to work with prosecutors to send personnel of errant brokerages to prison.

Reprinted from Forexbonuses, the copyright all reserved by the original author.