You might not realize it if you are a new trader but security feature is the first thing you should be looking at when you want to sign up with an online forex broker. You have hundreds of online forex brokers to choose from but they are not meant to be equally good. Now, it is important to mention here that security means multiple things here. Security should not be limited to the website having only the security socket layer for the protection of your information. There are other things involved. So, let’s look at them.
The Main Security Features to Look for in an Online Forex Broker
-
Sharing of Information
Firstly, you have to be share that the broker you are signing up with will not forward your information to third parties without your consent. The right brokers obtain your consent before they pass on your information to any other companies for marketing purposes. If you do not know already, they can face heavy fines for violating the standards and rules laid out by GDPR. Therefore, you should check the website of the broker to find out if your consent will be sought before sharing your information with someone.
-
Storage of Your fund Funds
This is one of the most important parts of dealing with online brokers. You want to be sure that the money you deposit in your account will be safe in any unforeseen circumstances. You don’t want your broker coming to you saying that their account was hacked and your money could not be saved. For that reason, the best online brokers put the money received from their traders in segregated bank accounts. You can take the example of Duxa Capital, an online broker that promises to put your money in segregated accounts so it is safe always.
-
AML Policy
In addition to the points stated above, your broker should also be responsible in how it conducts business. There are certain things that might not affect you today and directly, but they can have a huge impact on the safety of your funds tomorrow. For example, your broker should not let any money launderer us its platform for laundering money. If any such activities are caught, your broker might get sealed, and your money could end up somewhere you can’t find it. For that reason, you want your broker to have an anti-money laundering policy.
-
Proper Trader Information
The brokers with bad intentions want you to sign up on their platforms without any barriers. They do not really have a platform for trading. All they want is access to your money and that’s why they make their sign up process unbelievably simple. The idea is to make you sign up without any issues. If the broker you have chosen for trading does not ask for your personal information while signing up, you want to stay away from it. The right brokers will need proper identification information from you before you can start trading with them.
How could a broker save you from an identity fraud if they do not even know the people who are signing up on their platform?
Final Thoughts
With all of the above-mentioned pointers in mind, you have to be diligent in choosing the right broker for trading currencies. You have to know that you are going to put real money on the line in order to trade in the forex market. Your broker is the bridge that gives you access to not only the currency pairs but all the necessary information to help you with profitable trading. If there is one thing you can’t ignore while signing up with a broker, it is the safety of your information and funds.
