Ensure the safety of money
The safety of money is the most important thing for any customer, as the customer needs continuously to be sure of that the broker will give him back all of his money with his profits as soon as possible. However, there are no regulations and laws that can protect your money from misuse or protect it from bankruptcy, except through the experience of the broker model, so that it becomes clear to you whether the broker will pay you money or not.
There are some methods that we have collected from previous experiences and may help you protect your money:
First: beware of companies that offer huge profits and commissions to their customers or agents and tempt you with attractive offers. This will subsequently result in the gradual decrease and decline of these offers as a result of the bankruptcy of the company, or it may use the customers' money in a specific activity that may be unknown, and then starts showing these huge offers to attract other customers to it.
Second: Before you deal with the company, you must have sufficient information about the company and its activities before starting to deal with it, and make sure from its former customers that it pays the full money even if the profits are huge, and it implements all the contract terms with the transparency of contracts. Also, if the company has an electronic communications network (ECN) because it means that it has a mechanism which protects it from risk and experienced management can develop and implement the right mechanism against risk.
Thirdly: Customer should inspect his money continuously so he will be able to observe any changes that may occur as a result of manipulation, and see if the spread is increased or the prices fall, or they delay the execution of your orders, but take in consideration that the spread may increase as a result of its increase in the market, which occurs in cases of market stagnation, therefore you also must follow the money market continuously.
How to choose the company that protects your money?
- The company has an optimal business model with fixed assets in many financial markets.
- Has a team with extensive knowledge and great experience in the forex and paper trading.
- Has internal systems and procedures to ensure a high level of performance of its work and the activity of its employees with customers.
- Has strict system in adhering to all international laws and regulations in the fight against money laundering.
- The company has a great interest in maintaining its customer data, assets, trades and remittances, and to give you the highest level of safety for customers’ financial activity.
- Have clear policies to maintain customers and to avoid risk for the safety of customers' money, and this policy is based on long experience and deep knowledge of the market.
- The company should keep customers’ money and company’s money in two separate accounts, and the movements of the company's money should be organized in a way that does not allow any use of the customers’ money.
- The company has a full model that ensures that the dealer do not enter in your trading to do any manipulation.
Here we focus on an important point: the need of separation between money for its safety and protect it from any risks. As mentioned above, this through bank accounts with customers' money and separated from the company's money so it will not enter into other purposes. The company which provides this guarantees the safety of the money and protects it from any losses or errors that may occur in the company without informing customers.
This happen when the company is a member of the Financial Services Compensation Plan (FCS) and a member of the Investor Compensation Fund (ICF), through it eligibility is based on the status and nature of the financial claim. You can refer to the company's legal documentation and compensation policy.