Three major concerns of foreign exchange speculation
Before you open an account to speculate in foreign exchange, you should first see the regulatory agency of the foreign exchange dealer, because the domestic foreign exchange margin trading has not been opened. Among the regulators, American NFA (National Futures Association) is the first choice. NFA is the most standardized among many regulators. The leverage of platform regulated by NFA is 50 times. Second, the UK FCA is the world's largest foreign exchange regulator. Many platforms are under his supervision. For the platform you select, you should first check which country's regulatory authority regulates it. If you have an ID number, you can go to the regulatory website of the government of that country.
1. Regulatory agencies
American NFA is the first choice, and NFA is the most standardized among many regulatory agencies. It has a first in first out principle and a low leverage of 50:1. The first in, first out principle does have a significant impact on traders' trading habits, but some smart platforms have cleverly avoided this effect by opening account sub accounts. The upper limit of 50 times leverage only affects those speculators who are overweight or full positions. The British FCA, in fact, is far from the NFA in terms of regulatory standards, and even irresponsible! However, FCA's position in the world of the second term of the FCA has made it one of the oldest in the world. Recently, however, the FCA has provided investors with a protection program to ensure that our interests are not infringed. ASIC in Australia, ASIC is the most stringent regulator, but not necessarily better than NFA.
2. Performance and properties of the platform
Experience tells us that any platform may have problems, but the loss is never caused by the problem of the platform, but you are far fetched in! Now mainstream platforms will compensate customers for their own technical problems, as long as you provide solid evidence, rather than wishful thinking about how the platform is. With regard to floating and fixed point spread, the spread of normal inter-bank transactions is floating, so people's aversion to floating is an irrational understanding.
3. Gold production speed
Users are most concerned about whether the withdrawal is safe and timely after making money in the financial market. In the platform regulated by NFA in the United States and FCA in the United Kingdom, if the withdrawal time of securities companies exceeds one month, users can directly write a complaint to the US NFA or the British FCA, and the compensation will be shocking. Secondly, in order to prevent international money laundering and protect customers' funds, large securities companies only accept the deposit and withdrawal of the account holder. The name of the account holder shall be the same as that of the account holder. Generally, it takes about 20 days from the application for withdrawal to the receipt of money from the bank account, which includes the verification of the application by the securities companies, the verification of the remittance by the National Bank of America, the examination of the inflow of foreign funds by the Central Bank of China, and the time required for the transfer from the Central Bank of China to the bank where the user opens an account. If it is a large brokerage agency with offices in China, the relative speed will be much faster, it will directly save a lot of cumbersome audit links.
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