How Forex Rebates Work

Foreign exchange trading process of capital security

capital security How Forex Rebates Work the premise of all investment With the development HowForexRebatesWork growth of the foreign exchange industry, a variety of black platforms disguised as children and young people have emerged one by one If investors inadvertently choose a black platform, even the basic capital security are cashbackforexreview guaranteed, then even if you have more advanced technology, and then a keen intuition, the final is a basket of water is empty So cashback forex security ah Security, safety of bestforexrebaterates is the initial domino, draw off, there is nothing then in the time of forex trading, how do we ensure that their funds are safe enough? The segregated premiumrebateforex, funds custody, funds depository] segregated account is a promotional point for foreign exchange brokers to attract users, in fact, the segregated account is one of the basic conditions we need to consider when choosing a foreign exchange broker segregated account means that customer funds are stored in a special bank account, and separate from the brokers capital account customer funds cannot be combined with the operating assets of the foreign exchange broker here There is also a question of whether the funds are deposited or escrowed, which is very different. Escrow means that the custodian is obliged to monitor the flow of funds, trade according to the instructions, and regularly issue escrow reports to prove that the funds have not been misappropriated, but the depository does not have such a requirement, the broker still has free rein over the funds in the account under the depository model, which does not have the effect of segregation, and there are Some black platforms are used in this way to roll up money and run away Strictly speaking, the segregated account should be the investors account in the bank where the funds are hosted, that is to say, the account is in the investors personal name, and then the broker (usually through a third-party payment) will transfer funds to the account, when the foreign exchange transaction occurs, the funds directly from the investors personal account into the foreign exchange market for pending anonymous transactions, the transaction process However, most foreign exchange brokers now use a single bank escrow account, and customer funds are agreed to be placed in the name of this account, which also avoids the broker and customer funds contact, but also convenient for brokers to manage [why segregated accounts will be safer] may have some investors will think that the account is not segregated, it does not matter, after all, the bank still take my money But dont forget that regular commercial banks have the central bank as the back office, the investors deposit to ensure the safety of the foreign exchange broker does not segregate the investor and the companys account, that means the broker can use the customer funds at will, which is very dangerous account is not segregated means that investors have to bear the risk of foreign exchange companies operating unfavorably, the risk of closure, and there are many donations to run away from the brokers are Similar situation and choose a segregated account, it means that even if you choose a foreign exchange broker problems, your money is still your money, there may be a small part of the loss (such as administrative costs), but can ensure that most of the funds can be returned [how to see whether the broker provides a segregated account] So we now know that the segregated account is very important, then how to determine whether the broker really provides a segregated account How can you tell if a broker is really offering segregated accounts? First, of course, there is the easiest way to ask customer service but if you do not believe this verbal confirmation, you can also check the bank account information (preferably wire transfer information) is consistent, consistent then you can basically determine the If you are still not sure, there is a most simple and brutal method, is the regulation of the current, there are some regulatory bodies require brokers to provide segregated accounts, such as the United Kingdom The FCA, Israel ISA, Australia ASIC (April 18 funds segregation bill came into effect), Cyprus CySEC, etc. However, although these regulators have strict rules on segregation of funds, but whether the trading platform will do some small action is unknown, so the platforms own strength and reputation is also very important Finally, there are several points about the safety of funds to remind Investors pay attention to this aspect, after all, caution is not too much: Tips: isolated account does not mean absolute security, banks may also have risk isolated account funds are placed in the bank trustee, the bank as the custodian, is to ensure that the important link of funds isolated but now there are some large banks are no longer willing to provide account services to foreign exchange brokers, if the brokerage cooperation is two or three banks, its So investors should not forget to check the qualifications of their partner banks when choosing a broker brokers license and the segregated account where the clients funds are located in the same country Investors need to know that not all regulatory requirements for segregation of funds, and even if you choose the right regulator, you cant let down your guard if the broker offers you an account in another country Investors should be careful, because when the brokers license and customer funds in the account is not in the same country, the funds in the account will not be protected by the regulator head office regulated does not mean that the branch must be regulated some brokers do not have a regulatory license, but will advertise to investors that their head office is regulated by a regulatory body, so as to mislead investors in fact, the branch The fact that the head office is regulated does not mean that this regulatory body has the same level of supervision over its branches, and the head office is not legally responsible for the problems of the branches Therefore, what investors should focus on is the regulatory license of the branch, the strength of the platform, etc., rather than fetishizing its head office personal account?NO! If a broker lets you send money to a personal account emmm.... This is very debatable even if the company is holding a formal regulatory license, this is also a very unreliable thing, the user to choose should be to provide escrow to public accounts of foreign exchange brokers