You have to trust your broker, in any financial transaction. To build trust, it’s customary in the financial trading industry for independent third parties to act as regulatory overseers.
A good example of such a regulator is the South African Financial Services Board (FSB), an independent third-party regulatory agency that monitors the non-banking financial services sector in South Africa and online.
The FSB is charged with maintaining the honesty and propriety of financial investment in. and originating in, South Africa, while serving the public interest.
It’s also customary for brokers to maintain strict management of all funds in their control – especially the client trading account funds. Customer funds, once deposited, are normally kept in segregated accounts, away from company funds, to ensure that they cannot be used for any purpose other than customer trading activity.
Broker websites and servers are also firewall protected to maintain the safety and integrity of customer data. Trading transactions are always conducted from behind the firewall.
All of this is important, but… There’s always a ‘but.’ Here, the ‘but’ is the extras that the broker offers. As a trader, will you have a personal account manager? Which trading platform will you be using – and will it offer you tools to streamline and improve your trading?
These questions don’t sound like they’ll affect safe trading, but they do. A personal account manager – someone knowledgeable about the markets – can help direct a client towards profitable trades.
The right platform, such as MT4, will offer the real-time market intelligence that traders need to make the right trade and to set their limits to avoid losses and maximize profits. Knowledge is power, and an empowered trader knows how to keep his investment safe. A good broker, one a trader can trust, will work to empower clients to succeed.
No one takes trust for granted these days. It’s earned, not given. CM Trading is a broker which has worked hard to earn the trust of the online trading community, conforming to the best financial safety and security practices, regulated by the FSB, and offering clients top-notch support and trading technology.