Regulated brokers provide the investor with advice and execution of the transactions in compliance with the applicable regulations. The term regulated is used because these professionals are governed by the rules and regulations imposed by the regulatory bodies like Commodity Futures Trading Commission (CFTC), National Association of Securities Dealers (NASD) and Association of Private Brokers. These organizations impose regulations that ensure the protection of the investors from fraud and their protection against unfair practices. The rules and regulations also ensure the protection of the financial risks that a client faces. Since, these brokers are registered with the regulatory bodies and they follow their rules and regulations, you can rely on them to provide the best advice.
There are various categories of Regulated Brokers which include full-service brokerage firms, self-regulating and broker-back regulated brokers. All these categories have a common goal, which is to serve the customers by providing the best professional services. The importance of regulated brokers has increased in recent times with the growth of the futures trading regulations. With the growth in the number of traders, it has become difficult to keep track and regulate their activities.
Brokerage firms employ experienced and dedicated professionals for dealing with the day traders. They are well aware of the day-trading activities and their techniques. These professionals use their experience to provide sound advice to their clients on any financial issue related to trading. The Regulated Broker Act of India is one of the major authorities that regulate the day-trading market. The purpose of this Act is to protect consumers and investors from fraud and cheating in the trading sector. This Act has helped millions of traders around the world to earn good profit.
This Act specifies the minimum qualifications for the registered brokers. These Qualifications include the degree and the level of practice required for each job. The Broker Act also lays down the maximum amount that can be charged for the service of a registered Forex trader. According to the law, the minimum qualification of a Forex trader should be an undergraduate degree from an accredited university or college. Besides that there are several other Regulations that govern the trading platforms of regulated brokers. These include the registration and licensing of Forex brokers, regulation of the trading platforms and protection of consumers from the fraudulent activities of Forex brokers.
According to the Regulated Broker Act all the registered brokers must have a registered office. Registered offices are required to be maintained at the places where they operate. These offices should be at places where there is regular traffic. These offices must be at places where the public can access without difficulty.
The primary purpose of the Regulations is to protect consumers. This is done by regulating the activities of the Forex traders. The Regulations help the traders avoid fraudulent traders and protect them from being cheated. The Regulated Broker Regulations help traders to manage their funds effectively.
As a trader you need to be aware of the trading regulations. It is very important for you to know about these regulations as a way to avoid being cheated. If you are a beginner in the Forex market then it is advisable to learn more about the trading regulations and how to deal with them. You can also get more information about these regulations from the online website of the Bank of America or any other reputed bank that deals in currency trading.
A trader can get more information about the various types of Regulated Broker Offices and the various types of Regulated Broker Rules and regulations through their respective regulatory authority. You can even check out their respective Broker Referral Websites. There are some good regulatory authorities that provide complete information and regulations related to currency trading. You should subscribe to their service but you should understand the terms and conditions properly before taking a decision to become a subscriber. The Brokers Offices offer the Regulated Broker service but the traders have the responsibility to learn about the various types of Regulated Broker Offices and their respective rules and regulations.