In order to ensure the safety of monetary funds, the scope of cash use is specifically stipulated as follows:

1. Wages, allowances, bonuses and various labor insurance and welfare fees paid to employees;

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2. Remuneration paid to individuals for labor services;

3. Various social insurance and social relief fees paid to individuals in accordance with national regulations, such as retirement, retirement benefits, etc.;

< p>4. Pay the travel expenses that people traveling on business must carry;

5. Pay the sporadic expenses below the transfer settlement starting point;

In foreign exchange transactions, the safety of funds is the most important , among which the choice of trading platform is the basis for financial security. Choosing a formal foreign exchange dealer is the core. Among them, the relevant dealer supervision system in the United States is relatively safe and reasonable. When choosing a dealer, you should pay attention to several points: formality: whether the dealer, account opening, supervision, etc. are formal; safety: how to remit money to ensure the safety of funds. In addition, you should also understand some local regulations and characteristics to avoid traps set by humans, so as to ensure the safety of funds.

With the further relaxation of my country’s foreign exchange policy and the further opening of our financial market, foreign exchange investment is becoming an important investment variety around us. More and more people around us have started or are preparing to start. Engage in foreign exchange investment. The vast majority of them are engaged in margin trading. However, due to the lack of effective guidance, many investors feel at a loss when entering this market. Some investors have fallen into the trap of black foreign exchange traders and suffered losses. Therefore, for investors who have just entered the market, capital safety is the first consideration.

Choose a regular foreign exchange dealer to ensure the safety of funds

First of all, let’s look at the safety of funds. Domestic real money is deposited in domestic banks, which is safe, but for margin trading It is said that choosing a regular foreign exchange dealer can ensure the safety of your funds.

Speaking of formal companies, some irregular companies will say that making deposits at this time is irregular, not allowed by the country, and the world is as dark as crows, in order to cover up their violations. . The truth is, that's not the case. Although mainland China has not completely liberalized margin trading at this stage. Traders are not allowed to open branches and handle business in the country. However, the state does not interfere with the overseas investments of individual residents, so we can conduct foreign margin transactions through the introduction of these dealers’ agents or domestic offices. Formal foreign exchange traders will be supervised by the government agencies of the country or region where they are located, and customers will be protected by them.

Regulatory agencies for formal traders in various countries

At this stage, most of these formal foreign exchange traders are in the United States, the United Kingdom, and some in Hong Kong, China. Regular traders in the United States are regulated by the National Futures Association (NFA) and the U.S. Commodity Futures Trading Commission (CFTC). Regular traders in the UK are regulated by the UK Financial Services Authority (FSA), and foreign exchange traders in Hong Kong are regulated by the Securities and Futures Commission of Hong Kong (SFC).

As a major economic power in the world, the United States dollar also has a great influence on the world. Therefore, the United States is also a major trading market for foreign exchange transactions, and it has the largest number of foreign exchange margin traders. Moreover, most of the world's most well-known and powerful traders are in the United States. Coupled with its relatively sound supervision and complete legal system, it is the best choice.

The perfect US regulatory system

We take the United States as an example. If we are regulated by NFA and CFTC, we must comply with the following two conditions,

1. Customer margin and transaction The separation of merchant accounts must be supervised by a third party, that is, a cooperative bank. For example, fxsol

Customer funds stored in Morgan Bank are separated from the funds of fxsol company itself. In this way, even if the dealer fails, the bank will bear the risk of customer account losses caused by the bankruptcy of the foreign exchange dealer. To put it simply, if the dealer goes bankrupt, your money is still your money in your bank account.

2. Some customers will talk about what to do if the bank fails.

Let’s look at the second point. There is also an insurance company to provide credit insurance for this custodian bank. The insurance company bears the risk of loss to the customer's account due to the bankruptcy of the agreed bank.

These are just two of the most important principles. There are many other requirements. For example, foreign exchange traders and banks are required to deposit a certain amount of risk guarantee deposits with the U.S. Central Bank to retain the risk to foreign exchange traders and banks. Banks have the final sanction power for illegal operations and other bad behaviors. etc. From this we can see that the safety of funds for customers can be said to be completely guaranteed if they are regulated by nfa.cftc

In addition, investors can clearly check the foreign exchange transaction from the websites of these regulatory agencies. Business history and registration information. Have any violation records? Whether there are warnings or punishment records from regulatory agencies, etc., so that you can better understand the dealer. If you choose an irregular foreign exchange dealer, there is no safety guarantee for investor funds. Once a foreign exchange dealer violates regulations, investors' funds will be lost continuously. There is no place to complain.

Regulatory systems in other countries and regions

The regulatory agencies in other countries include Switzerland, Australia, New Zealand, Japan, and Norway

These countries have regulations on foreign exchange margin trading. supervision. But the level of supervision is weaker than in the United States. It is also difficult to find detailed information and historical records of regulated companies online.

Generally speaking, we have no way of verifying the foreign exchange traders who claim to be regulated by financial institutions in these countries.

The United States is the country with the most complete regulatory agencies. A foreign exchange dealer regulated by the National Futures Association (NFA) and the CFTC. It is the first choice for margin trading, followed by those from the UK and Hong Kong. Do not choose, and there is no need to choose, those that claim to be regulated by other countries and regions but we cannot find. Because as we have just said, there are already many strictly regulated foreign exchange traders with enough choices.

For example, fxsol, pfg, ifx, etc.

In the following time, we will answer some questions from investors about the selection of traders