Foreign exchange account opening and depositing, and withdrawals are generally realized through the Internet, so it is very important to ensure the safety of funds. We need to be more cautious in choosing a platform.
How to distinguish whether the foreign exchange trading platform is compliant? It is best to leave when you encounter these problems!
How to distinguish whether the trading platform is compliant:
(1) Compliance foreign exchange dealers: that is, regulated dealers. The orders that customers trade directly enter the bank and the market. The regulated dealers provide channels for banks and traders. They can only pass through Technical analysis can be profitable in the foreign exchange market.
(2) Non-compliant dealers: They are not regulated by regulatory agencies or false regulatory agencies. Investors are only confronted with dealers, which is the so-called internal trading. Investors lose money and leave them to dealers. The purpose is to put the money in your pocket into your own pocket, and will not be responsible for the investors' funds.
(3) How to distinguish whether a dealer is compliant: ①There is no regulatory agency ②There is a virtual regulatory agency, but there is no regulatory number ③There is no information to display, can not be found, these are non-compliant traders, irregular traders may appear Unable to withdraw money, because it is not regulated and there is no way to complain, even if you make a profit, it is equivalent to a loss.
It is best to leave when you encounter the following problems.
1、Delays in deposits and withdrawals
When depositing: The trader is in a period of high mood and is eager to start trading. If the deposit process takes a long time at this time, the trader is immediately poured into a basin of cold water, and the enthusiasm will soon disappear.
Withdrawal time: The withdrawal time of different brokers may vary due to funding channels or regulatory review, but the withdrawal time promised by the broker to the customer should be stable. If you advertise a quick withdrawal within 24-48 hours, but in fact it is delayed to 1 week, then the customer's heart is immediately panicked: Is there a fraud? !
2、Many platform and transaction problems
Upgrading the trading platform is highly recognized by customers. In addition, long-term platform maintenance, software and hardware bugs, inability to log in to trading accounts, and even DDoS or hacker attacks will cause a lot of trouble to customers. At this time, brokers can still get a lot of understanding in communicating with customers in a timely manner.
However, if the trading platform itself has many problems, such as quotation delays, transaction connection or slow execution speed, etc., then it is obvious that this broker has a problem. Customers are not fools, they will consider that this broker may not pay attention to infrastructure, or may not be able to provide a stable and adequate trading environment.
3、No more detailed features to attract customers
Changes in trading platform functions will undoubtedly cause some customers to leave. Especially when many foreign exchange traders only look for a certain trading platform, especially when a certain function is needed, the change of the platform immediately loses its appeal to them.
Suppose a trader only chooses a certain broker because he wants to trade minor currency pairs and rare currency pairs, such as EUR/CZK. Then, when the broker no longer provides the currency pair trading, the trader will naturally There is a high probability of leaving.
4、Increase in spreads or commission fees increases transaction costs
Fortunately, competition in the foreign exchange market has always been great, and a large number of new brokers are added every year, which keeps the spread of foreign exchange transactions at a very low level. In particular, the spreads of major currency pairs have been showing a downward trend.
However, the spread conditions of some relatively low active currency pairs are not so good. Even a small increase in spreads will result in increased costs for traders, especially for scalping traders. If they find that the spreads of the currency pairs they care about on other platforms are low, and the platform functions are similar, they may be more willing to change platforms.
5、Increased minimum transaction volume requirements
For long-term business development considerations, some brokers may prefer customers with high trading volume, for this reason it will increase the minimum trading volume requirements of customers.
However, for small retail traders, this requirement is not good. There are many customers using small accounts in the market, and they may not be able to meet the increased minimum transaction volume requirements. There is also a disadvantage for brokers to increase the minimum trading volume, that is, traders cannot flexibly set positions, so it is difficult to implement more cautious and conservative fund management strategies.
6、Disable certain deposit and withdrawal channels, which makes traders feel inconvenient
The channels and methods for brokers to deposit and withdraw funds are very important, which affects how much commission and handling fees traders need to pay, as well as the speed and safety of transactions. If the broker offers a variety of convenient deposit and withdrawal methods, it is not a big problem to stop one of them.
However, suppose a broker has only two deposit and withdrawal channels, but it suddenly stops one of them, and traders have only one choice. And not all traders apply a certain fixed channel of deposit and withdrawal, this kind of impossible can be imagined.
6、Frequent harassment by sales and other personnel, persuading customers to deposit funds
When opening a real account with a broker, the trader must provide the broker with contact information. Even if you register for a demo account, you sometimes need contact information. Some brokers will make full use of these contact methods to continuously urge these potential customers to deposit more funds and trade more by phone or email. This is really annoying, but it is not the main reason why traders abandon this broker.
8、Overwhelming fraud warnings on the Internet
The risk of foreign exchange trading is high. Whether it is a broker’s problem or a trader’s problem, we may often see negative comments on many brokers on the Internet. These negative comments are sometimes true and legitimate, and sometimes they are fabricated by competitors.
No matter whether it is true or not, many customers must pay attention to the broker's comments. If there are a lot of fraud warnings, customers will naturally look for evidence to analyze and distinguish between true and false. If they think there is a real problem with the broker they are cooperating with, they will probably get the funds back and replace the platform.
9、Warned by the supervisory authority, the supervisory situation is uncertain
Regulators such as FCA, ASIC, and CySEC will often warn companies that are not authorized to conduct business locally, although this does not necessarily mean that these companies are scams (for example, a legal offshore broker solicits in the United States). Customers, and will not pose a threat to the company's non-US customers), but it is very necessary to conduct an in-depth investigation of the broker.
Whether it is a broker who claims to hold a certain regulatory qualification, but is warned by the regulatory agency as fabricated, or is not regulated at all, traders will feel that their funds are not safe enough.
10、Customer support services are not in place
When a trader needs customer support, it means that there has been a problem. It may be that the transaction has encountered obstacles, or the information may be lost or unclear. In short, the problems that need to find customer service are usually what traders want to solve as soon as possible. And if the customer service is not good, for example, the response is too slow, the answer to the question is perfunctory, or the solution is useless, etc., it will disappoint the trader. If this happens constantly, traders will choose to leave.