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Looking to login to your NovatechFX account? Here's everything you need to know to login to your account and start trading today!
Last updated
Looking to login to your NovatechFX account? Here's everything you need to know to login to your account and start trading today!
Last updated
As we already established, the broker doesn’t hold any license to provide online trading services. And this is a serious problem because such companies often turn out to be scams. They can quickly and quite easily steal your money without facing any consequences for their actions – simply because there’s no regulator overseeing their activities, and most of them operate more or less anonymously.
But even if these unregulated brokers aren’t outright scammers, they still cannot provide their clients with any sort of protection. In contrast, regulated brokers, are expected to comply with many rules that help weed out scams and aim to ensure transparency and consumer protection.
The regulatory framework in the US
Forex brokers in the U.S. should be registered with the Commodity Futures Trading Commission (CFTC) and also be members of the National Futures Association (NFA). The NFA keeps a database of all companies registered with the CFTC, where you can easily look up any company – it’s called Background Affiliation Status Information Center (BASIC).
