If we just refer the financial situation to the United States, stateside speaking, the Commodity Futures Trading Commission (CFTC) has called for fifty eight actions against firms beginning in year 2000. This kind of powers were also given to them in year 2000. Given the fact that certain misbehaved brokers still continue to abuse the financial system, with traders' money sometimes disregarded and not being traded in the currency markets as they have promised. Traders have to come to understand, anything can happen in the process of doing trades at the currency market. Now the question is, what can normal investors do in order to protect themselves?
In essence, the retail forex market is adopting the idea of betting, there is always a potential risk that traders will not get what they are winnings, or the odds would be quite highly stacked against them. Ever since the Forex market getting bigger, within this regime there is tighter regulation as well as increased competition from all sides, this risk has been largely eliminated. On the other hand, the risk of price manipulation always exists and such situation will never go away. Therefore Forex investors need to make sure that they have a very reliable, individual price source, they should also try to trade with a broker who offers authentic one click dealing.
Most trading brokers work on the principle of focusing on large number, they do not hedge against or for any positions and most of them are straightly competing against their clients. This has come to be the major lead to price manipulation, someone would say further actions by a certain group of authorities will inevitably be called for.
In all, for the currency rookies, just like with any new idea of trading, you need to have a very clear picture of what you are doing, especially when there is margin involved in the investment. Take all the time he or she may need to learn the Forex trading skills well. Traders should at least practice everything they learn with a demo account long before considering going 'live' with the use of real deposits.
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