Reporting Of Broker
Both ESMA and the US SEC mandate brokers to diligently record the outstanding performance of their services. The regulators aim to ensure that investors receive high-quality and viable performance.
MiFID II provides clear guidelines on this aspect. Forex brokers must disclose information about their execution methods and execution costs on a trade-by-trade basis. While this may seem meticulous, it is the most effective way to prevent fraud.
The costs are compared to the prevailing market rates. If a broker executes trades at higher costs than the market rates, it must provide additional explanations. If it directs the trader’s order through a suboptimal route, this fact must be disclosed to the trader. Once again, these examples underscore the importance of a robust regulatory framework.
All Account Types
Account types can range from coin margin or PAMM accounts to Bronze, Silver, Gold, and VIP levels. These differences may be reflected in costs, reduced spreads, access to Level II data, contract terms, or special leverage options. For instance, micro accounts might provide lower trade size limits.
It’s important to note that retail and professional accounts may be handled differently by each broker and regulator. An ECN account, for instance, gives you direct access to the FX contracts markets. Therefore, it’s crucial to understand your preferences and what each account type offers before making a decision.
The Bonus
From cash rewards to no-deposit bonuses, free trades, or deposit matches, brokers once offered numerous promotions. However, regulatory constraints have significantly reduced the availability of such bonuses. While our list will indicate them where offered, it’s essential to note that bonuses should seldom be the deciding factor in your FX trading decision. Always review the terms and conditions, ensuring they won’t lead you to over-trade.
