Legislation passed in October of last year by the CFTC (Commodities Futures Trading Commission) and involves regulated forex brokers, has caused much discussion in the community of Forex. Is this a good thing? Is this a bad thing? Y is there any difference? The answer to all three questions is obviously positive. For some it's a good thing to have regulated forex brokers, for others it's a bad thing and for others it makes no difference.
The good points of the regulation of forex brokers
Historically, the Forex has had a bad reputation with regard to futures and speculation. He was considered the black sheep come from speculative markets. People called him the forex trading gambling (gambling), because of how forex brokers manipulated the market; for many people the Forex market was synonymous with fraud.
Meanwhile, the market is expanded and the need for regulated forex brokers became evident. When you are dealing with a market that is worth multi-billions of dollars, the label which reads does not matter, it is a force that must be addressed.
There has always been, and there will always be scams as well as dishonest brokers. It's knowing that the CFTC has decided to act. They have drafted guidelines guidelines for companies so that they become regulated forex brokers, and for many this has been very well received. Note that this is still a voluntary procedure which makes it even more interesting.
When a trader chooses a forex broker, he might prefer a regulated broker, knowing that he is protected by the benevolent gaze of the government agency. Things are clear and sharp, it's not paying for the broker, but it provides a sense of security that would not otherwise exist.
The downside of the regulation of forex brokers
There are always among the libertarian Forex traders who are against government intervention whatsoever. Becoming a regulated forex broker becomes restrictive for them and they do not want to deal with this situation. They trust their own judgments to the extent that it is the choice of broker and they do not need to decide because of a government agency. These are legitimate questions.
Then there are other brokers who do not want to become regulated forex brokers for one reason or another, they do not want the CFTC to their neck or feel as if they were in the grip of a commission Federal. This does not mean that these brokers or shady or less legitimate than others, but they simply want to remain independent.
It makes no difference
Any company on the amount of money that circulates daily in the Forex market, attract scams and scammers. In particular, because everything is online, the initial investment should not be great, and that there is no test at the entrance.
Ultimately, the term "buyer beware" is true also in this case. However, due to government intervention and the rise of forex brokers regulated, these crooks have become fewer and sank to the bottom''of the mud to which they belong.''
