When it comes to forex trading, Romania is a largely unregulated market. It means that no set rules or regulations govern how traders operate. As a result, many scammers and fraudulent operators seek to take advantage of unsuspecting investors.
It can make it difficult for investors to know who to trust when looking for a reliable and trustworthy forex trader. However, there are some ways to find regulated forex traders in Romania.
Forex trading can be a very lucrative proposition. The lack of regulation and the significant potential returns entice many people to try it out as part of their investment strategies. Unfortunately, those new to forex often don’t know how to find regulated forex traders in Romania and give up before they have even started making money!
Below we look at how you can find legitimate, licensed brokers so that you do not waste time on unlicensed companies or those that will run off with your money:
Check if they are registered and authorized
One good place to start is checking if they are authorized through Financial Conduct Authority (FCA). On the FCA register, you will find all companies that can provide financial services in the UK.
If they are not registered with the FCA, this should be seen as a significant red flag, and you should look elsewhere.
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Are they members of any trade associations?
Many forex trade associations exist worldwide, such as the International Financial Services Commission (IFSC). Membership of an association usually indicates that a company has met specific standards and is likely to be more reputable.
Use a comparison site
There are many legitimate, regulated forex brokers out there, but it can be not easy to compare them all and figure out who is the best fit for your needs. It’s where forex comparison websites can be beneficial. A good comparison site will vet all of the brokers it includes and only list those regulated and have a good reputation.
Do your research
Although it is advisable to use a comparison site or an authorized regulator’s list, these are not infallible. It is always good to do some research before signing up with any broker. Check out online forums and read reviews to get an idea of how satisfied other traders have been with the particular broker you are considering.
Consider using a managed account service
If you don’t feel confident about trading forex yourself, you may want to consider using a managed account service. It’s where a professional trader manages your account for you, making all the decisions on trades. Search online to find one that meets your needs.
ANAFB
Another way to find regulated forex traders in Romania is to look for Romanian National Association of Forex Brokers (ANAFB) members. The ANAFB is a self-regulatory organization that represents the interests of Romanian forex brokers.
The ANAFB must meet several criteria, including being licensed and regulated by the BNR. It means that they are subject to regular audits and must adhere to a code of conduct. It helps to ensure that they are practicing fair and responsible trading.
Finally, you can also check the website of the European Union’s Investor Protection Scheme (IPS). The IPS is a voluntary scheme that protects investors who trade with authorized forex brokers.
Authorized forex brokers in Romania must meet several criteria, including being licensed and regulated by the BNR. It means that they are subject to regular audits and must adhere to a code of conduct. It helps to ensure that they are practicing fair and responsible trading.
Suppose you are looking for a reliable and trustworthy forex trader. In that case, it is essential to look for licenses and regulations by the BNR or another reputable regulatory body.
In conclusion
Regardless of whether you choose to trade on your own or use a managed account service, using the tips above will ensure that you are dealing with a reputable, regulated broker. Don’t waste time looking for forex traders in Romania who turn out not to be legitimate!