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Looking to trade overseas? Make sure your broker is backed by these authorities

by , 04 December 2019
Looking to trade overseas? Make sure your broker is backed by these authorities
Q. “I keep seeing special offers for signing up for Forex and trading brokers. I don't want to make a mistake and choose the wrong one. Do you have a list of requirements to make sure I choose the best broker for me?”

A. I am glad you asked this question.
My social media platforms have also been filled with advertisements from brokers that are offering different ‘Black Friday’ specials or even promise certain returns.
It’s important to not fall for the hype and rather do the research yourself, to find out which ones are best for you and your needs.
Here’s a list you may follow to help with your decision.
My top 10 list to choose the best broker
1. Only choose reputable brokers that are regulated and recognised by the main financial regulatory bodies. (See answer to question two for the list of financial regulated authorities).
2. Find a broker who offer a list of trading instruments that you prefer i.e. shares, CFDs, Spread trading or futures.
3. Make sure their cost fees are low and their withdrawing and depositing structure takes place within three working days.
4. Make sure they are insured and deal with the top banks in the world and don’t run their own finance firm where they can take your money and run.
5. Go onto Google or ‘Hello Peter’ and read as many reviews from REAL people to see their experiences.
6. Browse through their website and read through everything before you decide whether they are for you or not.
7. Avoid any broker who promises any too-good-to-be true returns or are very marketing orientated – most times these are scams…
8. Analyse their portfolio growth they’ve achieved for their clients over the last five years. This will help you see their consistency or even the validity of what they have to offer.
9. Choose a broker who meets your trading needs i.e. trading platform, available markets, trading indicators, economic calendars and even copy-trading plug-ins.
10. Make sure the broker you choose is able to help in terms of customer service needs, trading education, live videos and even trading events for their clients.
The very next SMS you receive could make you R1,914!
550 people ALREADY have my number in their address book - and since I started SMSing them, they've made thousands in profit in the last few weeks alone.
Now it's YOUR turn to see how much you could make!
Best of all, you don't need ANY previous experience, hard work or special equipment aside from a stick-standard cell phone.
Just add me to your contacts today - and you could be collecting your first pay outs by the end of the week
Q. “I’m looking to invest overseas, and would like to know when I sign up with a broker what are the main financial regulatory agencies that I should make sure they are backed by?”
A. With South Africa you’ll need to look for brokers who are approved by the FSB (Financial Services Board).
Here is a list of seven of the main financial regulatory agencies that are backed with strict regulatory enforcement in other countries…
You’ll need to make sure the broker you choose is approved by one of the below.
USA (SEC) – Securities And Exchange Commission
Eurozone (MiFID) – Markets In Financial Instruments Directive
UK  (FCA) – Financial Conduct Authority
Australia  (ASIC) – Australian Securities and Investments Commission
India (SEBI) – Securities and Exchange Board of India
Japan (JSDA) – Japan Securities Dealers Association
Switzerland (FINMA) – Swiss Financial Market Supervisory Authority
Q. “I’ve decided to join a Spread Trading broker, but would like to know what are the main costs I need to be aware of when trading? Your help will be highly appreciated.”
A. As far as I know, there are only three types of costs that a broker can charge you when it comes to spread trading.
1. Fixed Spread – This is where the spread (price between the bid and offer) is unchanged and so you know what the cost will be before you take a trade.
2. Floating spread – This spread is variable according to the market’s movement. Sometimes the spread will be wider or smaller according to the market activity of buying and selling.
3. Commission fee – Some brokers calculate a percentage of the brokers spread. This can be for example: A minimum fee that you have to pay to enter a trade despite the spread.
E.g. I know some brokers who have a minimum fee of R100 that a trader will have to pay to enter a trade.
Trade well,
Timon Rossolimos,
Founder, MATI Trader System

Looking to trade overseas? Make sure your broker is backed by these authorities
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