Here, the definition of “American broker” and “British broker”.
U.S. brokers are those who solicit clients “within the United States,” including home-grown FXK USA and Sarasin USA, as well as the U.S. arm of overseas broker ALPARI.
The latter category is called “foreign corporations” in the United States.
Both are subject to the US regulators CFTC and NFA.
A British broker is a broker who solicits clients “within the United Kingdom”.
This includes CMC at home and UK subsidiaries in other countries, such as FXCM UK.
The latter category is called “foreign owned” in Britain.
They are all subject to the FSA, the UK regulator.
When you open an account with an American broker, the money is kept in a separate account opened by the broker in the bank, separate from the account operated by the American broker itself.
Under US Generally Accepted Accounting Principles (GAPP), when a customer keeps money in a “customer fund account” in their name, the customer is the creditor of the company. In addition to the gains and losses in the transaction,
Customer account how much money, it is foreign exchange companies owe customer debt, one day to return.
Simply put, if a U.S. broker goes bankrupt, the trader, as a creditor, may not get his principal back in full!
The picture for UK brokers is more mixed.
UK brokers fall into two categories: those authorised by the Financial Services Authority to hold clients’ money.
Accounts opened through authorised UK brokers are protected by the FSA Compensation scheme.
In the event of a broker failure, you can be protected up to $50,000.
This is also the best type of capital security.
Of note is another category of UK brokers, which are not FSA authorised but hold an FSA Passport to develop UK clients whose funds are not covered by the FSA compensation scheme.
Some overseas brokers have opened offices in the UK but have been vague about the FSA compensation scheme.
Indeed, traders need to ask this question very carefully – is the account opened protected by the FSA compensation scheme?
Leverage multiple is not the same, leverage also plays a strong force.
With only a few hundred, you can mobilize tens of thousands of dollars through leverage.
There are different “multiples” of leverage.
The highest leverage in the United States was fifty to one, while in Britain it was more than two hundred to one and one hundred to one.
What leverage you choose depends on your trading preferences.
A lock-in is when a trader holds the same pair of long and short positions in the same account.
Chinese readers also call a “lock order” a “hedge.”
Lockups are banned in America, but not in Britain.
In the United States, where contracts for difference (CFD) are banned, which accounts for about half of trading platforms, the variety of trading available in the United States is relatively small, usually limited to a few dozen currency pairs and precious metals.
Financial disclosure transparency is not the same. The CFTC, a regulatory agency, requires monthly disclosure of the assets of foreign exchange brokers in the United States. In addition, the number of active accounts of brokers in the United States, the ratio of profit and loss of clients, and the speed of order execution will be disclosed.
British brokers are secretive about this.
The regulatory mechanism is different from the dual regulatory mechanism implemented in the United States.
The Commodity Futures Trading Commission (CFTC) is a government agency and a heavyweight regulatory agency in the United States.
The CFTC has been very active and proactive in its regulation and has maintained good interaction with the industry for a long time.
Companies and the CFTC have fixed Windows and contacts, and policy enforcement is efficient.
National Futures Association (NFA) is a non-profit self-regulatory body for the Futures industry in the United States.
In 1991, about 150,000 FUTURES practitioners in THE United States and tens of thousands or so futures brokers were compiled AND MADE available TO THE public and investors.
By 1998, all data were digitized, and a system called Background Affiliation Status Information Center, or BASIC, was established to make it easier for the public to search for Information on the NFA website.
All the basic information of the members, the shareholder structure of the company, the record of the license plate, the cases complained about, and the final judgment of the cases, as long as the members of NFA have a member number, the investing public can easily check on the website.
In recent years, all formal foreign exchange companies have also been incorporated into this system.
NFA may also make its own judgment on the merits of the customer’s complaint or complaint, or settle privately for both parties.
This is certainly a big step forward in financial regulation, showing that the NFA is not only leading the industry and collecting membership fees, but also acting as an investor side to crack down on unscrupulous financial institutions.
Britain has a uniform mix of regulation.
Whether it is securities, trust, insurance or, in our case, retail foreign exchange, anything that is a financial mouthpiece is regulated by the Financial Services Authority.
In Britain, where regulators are particularly concerned about unfair deals, the government has launched an educational website to teach customers how to help themselves if they are treated unfairly.
The dollar neared the 98 mark, the euro hit a near 22-month low, focus on the non-farm report.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
