Capital security problem
Supervision by the Securities and Exchange Commission
American Financial Services Authority
National futures association: NFA
australian securities and investment commission asic
The above-mentioned regulators have very strict requirements on the security of capital accounts: first, funds and traders' working capital accounts are kept in banks separately. Therefore, traders can't misappropriate funds, and even if the traders have financial problems, the funds will not be affected. Secondly, there must be an insurance company to provide credit insurance for this custodian bank, and the insurance will compensate for the losses. So in the worst case-the bank goes bankrupt, there are also funds for insurance compensation. Finally, the trader's complaints and handling results will be permanently notified and recorded, which can be viewed on the corresponding website.
Therefore, if you are a foreign exchange dealer supervised by the above-mentioned institutions, you can safely open an account.
Common sense of deposit
Funds can be remitted from the bank to the bank account designated by the dealer and cannot be entrusted to a third party.
It is absolutely not advisable to remit the deposit to a private account. The regular dealer's collection account should be the dealer's account, remember.
Third-party remittance
Because regular dealers are supervised by local regulatory authorities, in order to prevent money laundering and fund transfer, third-party remittances are not accepted.
The funds were not remitted abroad.
On the one hand, since it is a regular foreign dealer, it should only accept the remittance from the investor himself, and it must be directly remitted to the dealer's account; On the other hand, if the agent says that the funds will be remitted to banks in China or Hongkong before the funds are remitted to the accounts of overseas traders, there is a risk that the investors' funds will be misappropriated.
Choose excellent dealers.
Quote quality and transaction cost
The quotation we need must be operable, and it will change rapidly with the rapid change of the market. Slow traders are definitely not allowed to choose. Of course, most of them have done well in this respect. However, this problem still needs attention. The transaction cost, which is what we call "spread", is generally between 3-5 points for the major currency pairs of regular traders. The "spread" is of course as low as possible, but under similar circumstances, the quotation quality of the platform is also one of the important factors to be considered.
Dealer's service
Everyone must find someone with Chinese service, otherwise there will be some communication problems. When there is a network problem, you can make an international call for free and place an order over the phone. Or, if your English is not good enough, you'd better find a dealer or agent with good Chinese service.
Stability of trading platform
Every trader has his own trading platform software, and the stability of the platform is very important. If you can't connect to the server or the server often doesn't respond, it's in trouble. You can apply for a simulated account in the trading software provided by the trader, and you will know how stable the trading platform is.