More than five trillion American Dollars are traded on the forex market on the daily basis, making it one of the most liquid markets in the world. This is, of course, good news for everyone who is interested in trying their luck trading here. Plus thanks to modern technologies almost anyone can start trading forex, nowadays.
However, before anyone decides to follow this path of great opportunity, they should always think safety first. And by safety, we do not mean the protection of investments against losses resulting from unsuccessful trades, but rather the legislative protection of investment funds from the point of view of their possible unfortunate entrustment to "bad" hands.
Although it is very difficult to determine the exact percentage, it is estimated that less than 10% of brokerage firms are regulated by one of the recognized regulators. In a literal sense, this means that the vast majority of brokerage companies are not sufficiently supervised today, which of course brings with it certain risks. One of them being that such companies may not always behave completely correctly and in the interests of their own clients.
Undoubtedly, one of the biggest risks that traders can face when trading an unregulated broker is embezzlement. Although it may seem that most brokers are sufficiently regulated and traders have certain guarantees as a result, the truth is often quite the opposite.
Many dubious, but also smaller, brokerage firms are seemingly regulated by a regulator, but these regulations often do not protect users from embezzlement or unfair commercial practices at all, as they are issued in places where neither international law nor various conventions are being enforced.
CFTC – US supervisory authority overseeing futures trading in commodity markets
NFA – US regulator for futures markets and derivatives
CySec – Cyprus regulatory authority
FCA – An organization involved in the regulation of financial services and financial institutions in the United Kingdom
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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67.90 % of retail investors lose their capital when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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The content on this website is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions. L.F. Investment Limited has taken reasonable measures to ensure the accuracy of the information on the website, however, does not guarantee its accuracy, and will not accept liability for any loss or damage which may arise directly or indirectly from the content or your inability to access the website, for any delay in or failure of the transmission or the receipt of any instruction or notifications sent through this website.
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