In today’s markets, it’s not un-common to see forex brokers popping up, left right and center. The lure of running a successful forex brokerage means amateurs are opening their own forex business to replicate larger, more successful institutions.
Why is it important to check if a broker is regulated?
The more pertinent question here is why wouldn’t a broker become regulated?
There are several reasons why a new broker would consider not becoming regulated, one of them being to save on operating costs. Regulatory licenses can be extremely costly and can even run into millions of dollars to maintain. Also, brokers are expected to have the appropriate amount of capital to ensure the they can properly operate. Being regulated means that this could become a barrier to entry, while no regulation means brokers can enter the market without appropriate capital requirements being met. The shortfall with this is that client’s funds can fall victim to brokerages that shut down without providing their clients proper compensation.
Often new brokers will operate offshore to offset tax costs. This is not unusual and in fact is a common practice among many brokers. However, when an off-shore brokerage is not regulated, this allows for fraudulent activities to take place without a regulator protecting the client’s funds.
The whole point of regulators is purely for the protection of the broker’s clients. Regulatory oversight helps protect traders from fraud. Brokers will often make use of compensation funds to protect the trader in the case where a brokerage suffers a financial collapse.
Regulators offer clients safety and peace of mind for investors
Tradeview’s top priority is our customers. We strive for customer satisfaction and transparency. Tradeview is regulated by the Cayman Islands Monetary Authority, or CIMA, which you can learn more about here.
Should you require more information on Tradeview, please don’t hesitate to email us
Also, be sure to check out what Tradeview customers have to say about us by reading their Trust Pilot Reviews