If you plan to conduct considerable foreign exchange trading in Canada, you should make sure the company you are working with is reputable, provides excellent service, and can be relied upon. Finding a trustworthy forex broker in Canada is not difficult, but the market is also home to a sizable number of dishonest people. However, if you want to learn more in-depth information, you can read our blog post on how to spot a subpar forex broker and what to do if you end yourself working with one. You will have a greater chance of avoiding the Forex Scam and keeping your money safe if you pay attention to this piece of advise.
Check the license of the broker.
Prior to signing up with a MetaTrader 5 broker, conduct your research and make sure they are legitimate. One of numerous international organizations that regulate forex brokers is the Financial Conduct Authority (FCA), which is the UK’s financial regulatory body. You should look for the online license information for forex brokers in your nation. If the forex broker is not registered with one of these agencies, your money can be at risk. Some requirements that forex brokers must meet in order to be granted a license include the following:
The Financial Conduct Authority (FCA) is the name of the financial regulatory body in the UK. It is responsible for ensuring that the financial services you choose are reliable, honest, and easy to use.
AML/KYC – Also known as “Know Your Customer” (KYC), this regulation requires all financial institutions to confirm the identities of each of their clients.
The General Data Protection Regulations (GDPR) take effect on May 25, 2018. In other words, as of that day, the EU will store and handle all of the data you provide to any financial institution. The ICO website has more information on GDPR.
Avoid Forex brokers who demand a little deposit.
One of your first stages in your analysis should be to look into a forex broker’s minimum deposit requirements. Some brokerages won’t let you start trading before they charge you more than a little deposit. Before making a deposit, several brokerages ask that you be at least 18 years old. For those who are in their 20s and 30s, this can make investing in foreign exchange difficult. Before asking you to trade with a bigger amount, some MetaTrader 5 brokerages allow you to start trading with a lower amount, such $100 or $500.
Be wary of brokers who limit access to accounts.
When you first begin trading, you should unquestionably only do so with a seasoned Canadian forex broker. For a beginner, this is acceptable, but as you develop your skills, you might want to share your profits with more seasoned traders so they can diversify their own trading portfolios. In this case, account access becomes important. Fraud alert: Exercise great caution when choosing a forex broker who won’t allow you to view their brokerage accounts. Forex brokers who won’t allow you to access their accounts are probably going to. Make sure the broker is reputable and won’t ask you to make a deposit or give them a percentage of your profits in return for allowing you access to their accounts.
Review the broker’s history.
Examine the broker’s past to discover whether any regulatory actions have been brought against them as well. Having this information will help you determine whether they are a sensible investment and won’t cause further problems. It is always preferable to be safe than sorry when investing. To make sure the broker you are working with has never been the target of regulatory action, check out the reviews on this website.
