Yes, your Forex broker should be registered and licensed with the financial institutions regulator in the countries they operate. You can find the list of Government Regulators go here.
The main reason why investors only use a licensed broker is so that their money is insured by the government.
Many fake online brokers, are criminal organizations, and are there to steal investors money. Be safe, and only invest your money at a licensed and regulated Forex broker.
The best Forex broker is different for every investor, depending on a variety of factors.
Location: Your country of residence determines which broker you should use. If you are in Australia, compare the ASIC regulated brokers. If you are in England, check out the FCA licensed Forex brokers.
Investor Level: Are you a new investor or an experience trader? Are you interested in MT5 with tight spreads, or do you want an easy mobile trading apps for quick speculative trades. Start with a free demo account at a few brokers, and compare.
You can see a list of popular brokers here.
The fact is that most people lose money investing in Forex CFD’s.
European Forex Brokers show that between 69% – 89% of their clients lost money. That is why it is better to be a broker than an investor!
Robo-Advisors give investors the impression that they are safer and more diversified, but that is not true.
If your broker offers a managed account, or promises fixed monthly returns above 10%, then they are probably an unregulated scam.
Learn more about Forex Investing Scams.
The way to get your money back from a scam or fake broker is not very easy.
If you made your deposit via credit card, you can call your credit card company and dispute the charges. Depending on your bank, it may not be so easy.
If you deposited via wire or Crypto Currency, the process to recover your money is very difficult.
Read more about broker complaints.