The forex market is a huge global entity, and one that sees an estimated $6.6 trillion traded globally every single day. This number has increased incrementally since 2019, when the average daily trading volume was estimated at just $5.1 trillion.

This increase is thanks largely to digitisation, with the rise of advanced and regulated forex brokers helping even novice investors to strike the optimal balance between accessibility, profitability, and safety.

In this post, we’ll look at the benefits of trading with a regulated broker, while asking which technologies are central to these.

What are the Advantages of Regulated Forex Brokers?

forex broker

There are multiple benefits to using regulated forex brokers, but perhaps the most obvious is their ability to keep you updated with the very latest regulatory changes and updates.

Put simply, most investors simply don’t have the time or inclination to follow this type of information, particularly inexperienced traders who are new to the marketplace.

However, brokerage sites negate this by providing up-to-the-minute regulatory updates and information, while translating these into new and exciting opportunities for investors to capitalise on.

This trend is underpinned by the fact that today’s forex traders are increasingly discerning in their approach, making them more aware of the risks associated with trading and the need to operate in a safe environment that can optimise longevity.

This is according to Sudhanshu Agarwal, who’s the executive director at Tickmill and a key member of one of the world’s most renowned, licensed forex brokers.

Another benefit of regulated brokers is that they adhere to fixed rules and guidelines pertaining to fees, even during times of increased volatility. Make no mistake; some less reputable brokers will look to capitalise on this by increasing the base rate and boosting their short-term profits, while they may also offer inflated leverage that optimises each trader’s potential losses.

What Technologies are Provided by Regulated Brokers?

forex broker

These factors contribute to a safer and more reliable online trading experience, which at least partially explains why regulated forex trading has gained such traction in developing economies such as South Africa.

Remember, the last 12 months have seen record levels of trading reach record levels across South Africa, with Tickmill alone witnessing a 27.43% in trading volumes alone.

Such brokers also enable traders to download the MT4 trading platform and access even greater trading technologies, creating an even more ideal balance between efficiency, speed and security in real-time.

More specifically, users can access a wide range of technical indicators alongside historic and live price information, while benefiting from stop-losses and advanced encryption that protects their money and personal information.

Also at the heart of this is Regulatory Technology (RegTech), which is an innovation that enables brokers to easily adapt and meld to the pressure of increased reporting and analysis.

More specifically, it enables brokers to automate the process of collating and monitoring key datasets, simplifying the practicalities of regulatory requirements while providing greater levels of protection for traders and their hard-earned capital. 

This is part of a wider drive within the financial world, of course, as governments and regulators alike look to create larger Internet ecosystems and infrastructures, in which operators must adopt a stronger duty of care to their clients or face far more stringent sanctions.