News
14 May 2021

Know More about US Registered Forex Broker Companies

US Registered Forex Brokerages Companies has gained popularity in the foreign exchange market in recent years. The US-registered Forex brokers now make up the largest percentage of total foreign currency market traders. To accept US clients, US brokerage companies must register themselves. US registered Forex brokerage firms are required to follow all the rules and regulations imposed by the US Department of Justice, Foreign Relations Department and the US Securities and Exchange Commission on their foreign currency trading activities. All US registered Forex brokerage firms are required to maintain minimum employee requirements, comply with all the laws and regulations regarding US citizens and legalities, as well as abide by US export laws.

US brokers are primarily regulated by the Department of Justice, which has direct jurisdiction over the US registered Forex brokerage firms. The Department of Justice's Bureau of Export Services regulates US exporters of goods and services and foreign currency trading. The bureau's Enforcement Division obtains complaint relating to possible violations of federal firearms laws or other criminal conduct. Complaints related to suspected criminal conduct are forwarded to the US Attorney's Office for further action.

Training and Assistance to New Traders

US broker companies must provide training and assistance to US citizens who wish to engage in foreign currency trading. US broker companies can engage in direct foreign currency transactions or forward US currency to another broker company to trade in foreign currency. The US-registered Forex broker companies may not, however, provide financing for any trades that result in a loss of funds or otherwise misappropriate the assets of the investor. The US-registered Forex broker companies may not directly deal with financial institutions or entities in any way shape or form.

Increase Customer Base

The US-registered Forex broker companies may employ some strategies to attract new clients and increase the size of their customer base. To increase the size of its customer base, broker companies offer incentives for referrals of other potential clients. Many broker companies will reward customers that refer new clients to them by providing them with a "Refer a Broker" badge or card. This "Refer a Broker" card may be used by a customer to identify them as a referred client and may also be used by other members of the community to identify brokers in their area that may have good referral relationships with other good clients.

Marketing Campaigns

The US-registered Forex broker companies also employ various marketing techniques. Brokers often use direct mail campaigns or mailings via the Internet. Brokers also advertise through media such as television, radio and print. Some brokers also participate in marketing campaigns sponsored by large financial institutions, banks and other large organizations.

The US-registered Forex broker companies may engage in online activities to attract investors. Online marketing includes creating blogs, providing news and articles on company news and events and advertisements. Some broker companies will create websites with interactive tools and media including streaming videos, slide shows, and audio. Many investors participate in online discussions about the US-registered Forex broker companies and Forex in general. These online discussions may include reviews of products and services, advice on which broker to hire, recommendations on which broker companies should be avoided and warnings about potential scams.

Tactics to Convince Investors

The US-registered Forex broker companies may employ a variety of tactics to convince investors to invest in their products. One such tactic is to offer low transaction fees or commissions. The US-registered Forex broker companies may promise high percentages of return or rates for trading. US broker companies may promise high rollover profits. US broker companies may promise quick returns.

US broker companies will sometimes use illegal or unfair business practices to attract investors. The US-registered Forex broker companies may sometimes require inexperienced, uneducated or inexperienced traders to work the front lines. The US-registered Forex broker companies will sometimes force inexperienced traders to work the back lines or may send inexperienced traders to work on a "vetting" team.

 

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