Forex Brokers Giving Interest on Funds
There are many ways a forex broker gives back to clients. Bonuses, promotions, referring rewards, and other related credits are common among them. However, what if you can get interest just by maintaining balance in your trading account? As keeping some balance in the account is already a basic trading activity, you don't have to put in extra effort or cost to get the interest.
If you ever wonder how such advantages exist and which forex brokers opt to "pay" their clients by giving interest on funds, here are some names for your recommendation.
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What are the role of awards for forex brokers?
Awards are advantageous for forex brokers. On the other hand, there are people who are willing to provide them for underqualified entities in exchange for cash.
For forex brokers, awards fulfill multiple marketing needs:
- To win accolades from the organizer's publicity.
- To enrich their own advertising materials.
- To obtain high-quality backlinks from news websites and other publications that publicize the award.
- To attain a degree of credibility in the eyes of potential clients.
Continue Reading at Forex Broker Awards: All You Need to Know
Here are some tips to identify forex broker scams:
- Check their contact support.
- Beware of unrealistic promises.
- Review them online.
- Check their regulation.
- Always check your monthly statement.
- Try trading with small capital.
- Make withdrawal.
Continue Reading at How to Avoid Forex Broker Scams
How do brokers get their income?
There are various ways a broker can get their money. Here are some of them.
- Spread
- Trading against the client
- Commissions
Continue Reading at Trading Commission Based on Forex Broker Types
What does it mean to be an FCA-licensed forex broker?
FCA-licensed forex brokers are generally considered trustworthy, because:
- The company has fulfilled FCA's minimum capital requirement. A dealer's license that allows the company to run a "market maker" business needs EUR730,000. An intermediary license where the company could facilitate STP execution needs EUR125,000. The cheapest is a restricted broker license in which the company cannot hold client funds, as it only needs EUR50,000.
- FCA will monitor the company continuously to ensure the segregation of client funds, monthly report and audit, efficient management including AML and KYC procedures, and proper risk disclosure for clients.
- FCA-licensed forex brokers are prohibited from manipulative trade practices, such as entering into positions against their clients. Brokers also should not make unrealistic promises or offering monetary benefits to encourage clients to take risky trading decisions.
- FCA-licensed forex brokers should not offer extreme leverage. Since mid-2019, FCA requires brokers to limit leverage on CFD trading between 30:1 and 2:1.
Continue Reading at UK FCA vs ASIC, Which Forex Regulator is More Reliable?