About Forex brokers

  • Regulation of the foreign exchange market in the U.S. is considered one of the toughest, but at the same time the most reliable in the world. Its mechanism is built on the principle of maximum protection of clients from fraudulent actions, although some features of the regulation are still a topic of active discussion. Today we will look at how regulation functions in the United States. The two most authoritative financial regulators in the United States are responsible for regulating the currency market: the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). The CFTC was created in 1974 with the original function of regulating the futures market. In 2010, the U.S. Congress passed the Dodd-Franc Act of 2010 to reform the futures market...

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  • Regulation in the EU

    Some brokers are proud to announce that they provide their services within the framework of the European regulation. For many traders it is a kind of quality sign - Europe is Europe. It's time to understand how exactly the EU regulation is implemented. The legal basis of regulation in the EU It should be noted at once that in the European Union, unlike other countries, there is no single regulator. Nevertheless, this does not mean that no one controls brokers in Europe. Each member country of the EU has its own organization whose function is to regulate the activity on the financial markets and each of the regulators has its own rules and requirements...

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  • Currently, the government of the Republic of Belarus has achieved that their foreign exchange market regulation, according to many market participants and financial experts, is one of the most loyal and attractive among the countries of Western Europe and the EAEU. So what does the regulation in Belarus look like? Legal framework in Belarus On June 4, 2015 the President of the Republic of Belarus signed a decree № 231 "On the implementation of activities in the OTC market", which is a defining document for the regulation of the foreign exchange market in Belarus. This decree came into effect on March 7, 2016. According to it, the National Bank of the Republic of Belarus is entrusted with the functions of the regulator. Control over compliance with legal norms, collection, accounting,...

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  • Regulation in Russia

    Currency market regulation in Russia is still the subject of heated debate in the financial sector: its mechanism has both supporters and opponents. The CRUFM, the CFTC and similar organizations that used to be a household name have fallen into oblivion. Today, we are going to find out who and how regulates the market in Russia today. The legal framework for Russian regulation As of 2012, the monthly monetary turnover of the Russian foreign exchange market segment exceeded $300 billion, which forced the government to pay the closest attention to it. As a result, on December 29, 2014, the President of the Russian Federation signed Federal Law N 460-FZ "On Amendments to Certain Legislative Acts of the Russian...

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  • As the great Russian poet Fyodor Tyutchev said: "You can't understand Russia with your mind, you can't measure it with a common measure", and one cannot disagree with this. Even the international currency market, coming to Russia, has acquired its own peculiar features, which must be taken into account when trading. So what makes the Russian market different? Russian and "Russian" brokers First of all, it is necessary to pay attention to one of the most important moments which most traders do not know. All brokers in Russia can be divided into two categories: - Russian brokers, licensed by the Central Bank of Russia; - brokers rendering their services to Russian clients and working in Russian. It would seem that there is no difference, however, in fact...

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  • Dealers in Russia

    Since 2015, the Bank of Russia began to regulate the foreign exchange market Forex in Russia. in Russia - the stages of formation From October 01, 2015 came into force the law "On", the main provisions of which began to be implemented from January 1, 2016 (Article 4.1. Federal Law of 22.04.1996 № 39-FZ "On the securities market"). The Central Bank of Russia was very serious about creating protective barriers for clients in the Forex market and imposed great demands on companies wishing to enter this legal field. The market available at that time was not ready for the regulator's requirements and throughout 2016 the dealers were engaged in obtaining a license from the Bank of Russia and creating...

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  • Why do novice brokers choose MT4? The MetaTrader4 trading platform is incredibly popular, despite its advanced age. It appeared in 2005, but even now, 11 years later, 80% traders and brokers are still working on it. It is not surprising that many beginning brokers choose it as their main trading platform. It is a reliable, efficient and cost-effective solution for those who are starting out with limited investment capital and cannot afford several trading platforms at once. However, in this case, the cost of an additional platform is not cancelled, but postponed to a later date, because you will still have to switch to MT5. Why can't I do without MT5 anyway? К...

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  • The Forex market in the Russian Federation began its work on May 15, 2017, when the first -dealers began to accept their clients. For the most part, the formal, but quite important stage was the registration of a framework agreement, which defines the relationship between the company and the trader. What is a framework agreement in the Forex market in the Russian Federation and what is it for? Clause 6, Article 4.1 of the Federal Law on the Securities Market requires a framework agreement between a trader and individuals who are not individual entrepreneurs, which defines the general terms and conditions of the binding interrelations between the parties. The details of the terms of this agreement are made within the frameworks of separate agreements, which are concluded by means of quotation of the -dealer and submission by the -dealer of the data...

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  • Today I will consider the problem of trader's psychology when choosing a broker. We will talk about how to avoid all the marketing traps and increase the deposit or at least save it. What do traders face when choosing a broker? So, when a trader decides to earn at the market, he needs an intermediary, which gives him access to this very market, i.e. a broker. It is a difficult task both for a beginner and an experienced trader, because the abundance of well-thought-out promises of easy enrichment, which press on the most subconscious emotions, is off the scale. Here the experienced trader has a small advantage - he doesn't hurry to believe the promises, but carries out a certain verification. But about this later....

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  • Today's traders are hard to please. They are sophisticated traders, pampered with technology and demanding of trading conditions. They want perfect execution, high resiliency, attractive spreads and transparent pricing. That is why it is so important for a broker to build a competent scheme of work with clients' orders and choose reliable liquidity providers. In this context, DMA liquidity gives a broker an advantage, which will help him to outbid the competition and gain the trust of his clients. What is DMA liquidity? The main advantage of the DMA technology (Direct Market Access) is the direct market access: all orders are routed directly to the liquidity providers, without the intervention of a broker. DMA orders are sent directly to the exchange, bypassing the brokerage company, increasing the speed of...

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  • Bonus promotions from brokers and dealing centers have long been a common attribute of working on the market and are often decisive factors when choosing a company or determining the amount to be credited to a trading account. But very often received bonuses turn against the client and instead of increasing his profit only speed up the process of deposit's nullification. How to understand when bonus from broker is just a marketing tool and really can increase your trading efficiency and when, on the contrary, it is a signal of dishonest company? Where does a broker get the money for bonuses? Bonuses sizes Bonuses - is it a deposit boost or a broker's fraud? Three signs of using a bonus as a trap for...

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  • World currency rates are not a constant. The main news not only of the economy, but also of politics has a significant influence on the quotations. Financial market participants with good analytical skills have a unique opportunity to earn not only from studying the dynamics of charts, but also from competent analysis and use of the received news content. In theory, trading based on the news looks simple and involves low risks. Many recommend it to beginners and there are even special advisors for it. But is it really so? Does the future of traders who staked on this strategy look so bright? Main disadvantages of trading strategies on the news Market participants who decided to earn on trading on the...

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  • Large financial institutions (banks and prime brokers), which form the international currency market, are generally considered to be suppliers of quotations (or liquidity providers). Big players unite in networks for joint trading, from where brokers can transmit the quotes to their clients to the retail market. Quote providers, aggregators, and no manipulation! There is no solely correct quotation supplier, each market participant may become a market maker and organize his own exchange. What you see in the terminal is just a current market slice, indicative quotes, the real availability of liquidity on which is never guaranteed. Quotes that come into the terminal form a book of quotations - the prices of limit orders in conjunction with the volume. The best prices of the market stack are displayed on the...

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  • It is hardly possible to find a trader who has never encountered a broker's requirement to provide documents confirming his identity, place of residence and other personal data. On the one hand, the financial company's desire to identify its clients is understandable and justified - we are not surprised by the need to show a passport for any banking transaction, even the exchange of a more or less large amount in foreign currency. On the other hand, the client verification requirements often become a manipulative tool in the hands of an unscrupulous broker, which allows delaying the moment of client's profit and investment payout or even refusing to withdraw the funds. So what is the notorious procedure of verification at the broker, for what...

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  • In this issue I would like to move away from the work-life advice on how to become richer, more efficient and more fortunate to turn again to the issue of trading. Today I want to share with you my thoughts on the subject of opening accounts by brokers for beginners at . The idea for this article comes from talking about the fact that the Russian regulator considers introducing to the market only professional traders, i.e. those speculators, who have already confirmed their qualification by passing professional exams. Let's think about whether or not a beginner trader really needs such a strong "care". To begin with I suggest thinking about two fundamental questions: "Who is a beginner at?" and "Why does one lose...

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  • Trust management of funds and assets seems to be one of the most attractive ways for private traders to earn money in financial markets. First, it does not require self-trading skills, which means that it is suitable even for beginners or people who have nothing to do with trading at all. Secondly, in this way investor can earn using experience and abilities of more professional participant of the market. And thirdly, transferring money into trust management it is possible to receive profit without giving a single minute of your time to the process of trading. However at the same time asset management is almost the most risky service on the financial markets, and brokerage companies are often wary of it. Is it possible to enjoy all the benefits...

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  • More and more often brokers talk about the technical component of their order execution, in which liquidity aggregators play an important role. What are they, what are their differences, and is it possible to set them up for slippage in favor of the broker, tells ForTrader.org magazine Quotix CEO Evgeny Sorokin. - What is a liquidity aggregator and what are its main functions? - Liquidity aggregators are the systems that integrate quotes from different sources into a single torrent and route the orders to liquidity providers. Brokers use aggregators to narrow the spread, get the best possible order execution and diversify risks associated with liquidity providers. Aggregators have many nuances of implementation, such as: Availability and...

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  • Due to the specifics of my work, I often communicate with the managers of various brokerage companies. There is probably no broker in Russia that is so popular that I do not have an opportunity to discuss the events in the industry with one way or another. So, lately the main issue worrying the companies became active and very frequent bankruptcies of the brokers, which were quite strong and did not cause distrust. Of course, this problem worries traders even more, who pay for it out of their own pockets several times a year. Our staff magazine traders have also left about 2500$ in companies that have already disappeared (acquaintances didn't help at all :)), so in my today's article I...

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  • Maximum reduction of trading costs is a natural desire of any participant of financial markets, and no wonder that for traders the size of spread is one of the most important factors when choosing a brokerage company, and for brokers it is a powerful competitive advantage and a lever of attracting clients. Following such logic one can suppose that the lower the level at which the broker will fix the spread for one or another financial instrument, the more profitable the trade of its clients will be. But in practice it is not always true. Moreover, most big brokerage companies offer along with low fixed spreads floating spreads, the size of which is not limited and not regulated anywhere. И...

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  • Beginning of the article Let's look at the EUR/USD tick chart of the largest liquidity provider, Swiss bank Ducascopy. BID and ASK charts are presented. Current time: 15:00 (MSK), 14.02.2015. The market is relatively calm: no news and no macroeconomic indicators are published during the hour. A 1000 ms wide window has been arbitrarily selected. There are 44 different values inside this window. If you move the window one step forward, the number of ticks will increase to 50. Let's assume that the trade server allows you to conduct operations with a delay of 500 ms (which is an excellent result). Attempting to sell at the initially stated price of 1.12770 could result in more than 35 retracements by the bank, before...

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