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The word “license” inspires confidence. Having heard about a licensed broker, many traders believe that they can work calmly. However, in the currency market, everything is far from clear. In order not to make a mistake with your choice, you need to understand how a license differs from absolute reliability.
You can use the Top Forex brokers list offered by FxCash. This service has been operating since 2009. It has connected more than 50 reliable and proven brokers to its system.
FxCash also helps traders save on commissions. You can return up to 90% of the spread for each transaction. Payments reach up to $35 per lot and arrive instantly after the order is closed. In addition, users receive transparent statistics, a highly automated interface, and withdrawals to convenient payment systems. You get savings on each transaction, which adds up to serious amounts per month.
Why a License Is Not Always a Guarantee of Safety
The process of trading with a licensed broker seems logical. However, a license by itself does not guarantee anything if the regulator is weak. Some jurisdictions require strict reporting, while others issue permits for a nominal fee. For a company, having such a document sometimes becomes just a beautiful element of advertising.
Risks remain even for licensed brokers. They can delay the withdrawal of funds, change the conditions on the fly, or complicate the account closure procedure. This is especially true for offshore regulators, who do not interfere with the work of brokers. Therefore, a license is not a guarantee of safe trading but only one aspect of the overall picture.
That is why traders should consider all factors: do not unquestioningly believe the regalia, but check the conditions in practice. Critical thinking, in this case, is more important than any advertising promise can offer.
How to Distinguish a Reliable Broker
Traders should not choose a company based only on its license or a beautiful website. You need a systematic approach. A mistake can be costly, especially with large trading volumes.
Before you top up your account, look at the following:
- license from a serious regulator;
- open and honest terms of transactions;
- real reviews from traders on forums;
- terms for withdrawing earned funds;
- quality of customer support;
- transparency of all documents and tariffs;
- ability to receive cashback for transactions.
Each item is a filter that will protect you from mistakes. Even if the broker is licensed, the lack of honest support or complex withdrawal rules is an alarming sign. You should spend time checking in advance to avoid losing money and nerves later.
An additional benefit is earning cashback. This is a highly effective tool for recouping part of the spread. It is advantageous when transactions are made frequently, and the commission accumulates into round sums.
Conclusion
A brokerage license is not armor but an element of trust. However, it is not always a guarantee of honesty. Fraudsters also know how to design websites and show documents. You should check in practice how much the broker keeps his word.
For those who want to maximize their benefits from trading, FxCash will be the ideal addition. The platform works with trusted brokers and pays cashback quickly and transparently. Broker licenses are just the beginning. Cashback turns each transaction into a source of additional income.