There are many factors to be considered when choosing Forex brokerage firms. This happens due to the availability of different Forex brokers in the market who are willing to accept your registration. While there are stand alone Forex brokers in the market, there are also a good number of brokers which are licensed bank. Initially, the Forex brokerage services were provided largely by commercial banks. However, due to the development in the industry, now there are several Forex brokers which are not operating as banks. When choosing a Forex brokerage firm, it is pretty wise to deal with licensed banks. There are many benefits of choosing Forex brokerage firms which are also operating as licensed bank. Below are some of the benefits to a Forex trader


As you know there is regulatory requirement for every Forex broker. Just like other financial markets, the Forex market needs sound regulation to keep off illegal operators and fraudsters. You should not be surprised to find that there are several unregulated brokers in the market although this is primary requirement. This puts the trader at bigger risks of losing his investments. Besides, there is no protection of the traders’ goals and interests. Choosing a Forex broker that is also a licensed bank lets you benefits from outstanding regulation. This is because in the financial institutions banks are given the best regulation.

Low exposure to risk

This is a subsidiary benefit to the intensive regulations that licensed banks undergo through. There are slim chances of exposing your investments to greater company specific risks when dealing with licensed banks. Although there are chances of involving in unethical, fraudulent and illegal activities, their chances are very minimal. You thus enjoy the ultimate peace of mind when trading in the Forex. The Currency trading might be a little hard for many people but you can check out currency trading basics to get right information and knowledge to achieve success in Foreign exchange trading.

Accuracy and transparency

Forex brokers which are not licensed bank always partner with banks to provide the service to their clients. First, they keep funds with these banks. Such Forex brokers get trade quotes from the bank before relaying them to the trader. This creates allowance for broker to interfere with quotes. The Forex broker can thus decide to alter quotes to favour them. They can also hold the quotes until they get good grounds in the market. The trader thus suffers from low profitability.

Low fees and commissions

It becomes very expensive to deal with a Forex broker which is not licensed bank resulting in low profitability. This is because the trader is subjected to high levels of fees and commissions. Because you will be dealing with a third party, the fees and commission must be increased: you pay for the service of the broker and the bank that it uses. These brokers cannot operate without partnering with banks. On the other hand, you will be dealing directly with the bank without the need of intermediary- the Forex broker. To get a fantastic forex trading platform, go to Dukascopy review to check out why traders compliment this fx broker’s services and discover exactly why they’re truly the best.


It is wise to choose a Forex broker which also operates as a licensed bank. There are many other benefits that a Forex trader will enjoy. In addition to the benefits discussed above, the process of Forex trading will be made enjoyable. This is the right decision to make if you want to marginally reduce the risks associated to dealing with intermediary Forex brokers. Lastly, a bank is very reliable and will provide every tool you need to realize your investment goals. If you are doubtful and thinking that it is a scam, pay a visit to forex scams to learn that the market is not really a scam by any means.