Brokers Owners and/or Operators

Owner

Importance of Company Information
These days there are hundreds of forex brokers to choose from, it can be difficult knowing which ones to trust. There are many factors to consider when choosing a company to deal with such as minimum deposits, payouts, fees involved, bonuses offered, assets available, etc. Follow the link and see which brokers are owned by the same group.

However, sometimes all these factors don’t matter if the company is not reputable and trustworthy. They can list all the benefits they want to make themselves look good at first glance, but what’s really important for deciding on whether a company is reputable, is the company and owner information. Usually, from these details you can get a pretty good idea of the company’s legitimacy.

So, what is it that you must look for in a brokerage and their owner? Below we will go through the important company and owner information you should understand for choosing a trustworthy and reputable company to trade with.

Company Location & Jurisdiction
The location of a brokerage has a significant impact on the legitimacy of the company. No matter where the broker is located, they should be under the rules and regulations of the regulatory agency that governs their jurisdiction. So, in order to check the validity of a broker, you should check to see if they are regulated by the authorizing regulatory agency in their jurisdiction.
As well, depending on where you (the trader/investor) is located, there is an impact on whether you are legally aloud to trade with the broker. Some jurisdictions restrict investors from certain countries from trading with brokers regulated under them. Such an example is; anyone residing in the United States are not aloud to trade with any binary options brokers.
In addition to the points mentioned above, even if the owner of a brokerage is regulated by their corresponding regulatory authority, it may still not necessarily be done by a reputable agency. Offshore brokerages get started up all the time due to their very low costs and minimum requirements. While brokers in reputable jurisdictions must need millions of dollars to start, some offshore locations require as low as $30,000 to open a brokerage. You can see how this would pose as a problem.
For all these reasons above, it is important to understand who owns the brokerage and what location it is based out of.

Additional Owner and Company Information
Another important aspect about an owner of a brokerage is the ability to directly contact them or somebody who can put you in touch with them. Every brokerage should have an official email address along with a phone number to reach them by. As well, you should be able to access and view all the legal documents a brokerage is required to provide. These documents include; terms and conditions, risk disclosure statement, terms of use, and a privacy policy. As well, the brokerage should have a management section on their website, with details on the people who run the brokerage. This includes the CEO, CFO, Executive Director, and so on. When companies provide this information along with a picture and the persons name, it can really provide a sense of reliability. If one was inclined to do so, you could research these owners and ensure their reputation is reliable.