They say you cannot become rich without spending your money wisely. For those who dream of becoming another Larry Williams, Alexander Elder, Warren Buffet or George Soros, thrift and safety of funds are some of the key factors that can ensure success. The thing is not only about wise money management and risk diversification. Sometimes, trading capital may disappear for some other reasons that are not related to your trading or investment activities.
What is the problem? The problem is that not all broking companies and dealing centers are reliable. There are still many unregulated brokers. Some of them trap unsuspecting rookies by talking them into opening a real trading account with them and depositing decent amounts of money. Yet, more often than not, winning traders have difficulty withdrawing funds from such companies.
Luckily, there are plenty of reliable brokers regulated by major financial watchdogs and participating in compensation programs. XEMarkets (Trading Point of Financial Instruments Lt) is one of such broking companies. The broker is licensed by the FSA, CySEC and is regulated by the Markets in Financial Instruments Directive (MiFID). Therefore, XEMarkets participates in the Investor Compensation Fund.
Regulation and Safety of Clients’ Funds
The “Regulation” page on the company’s website reads:
“XEMarkets‘ commitment to business transparency is reflected by the way it operates its financial services in compliance with its regulatory environment. This helps us to sustain quality services for our global clientele in the long run and establish a solid base for clients’ trust.
Owned and operated by Trading Point of Financial Instruments Ltd, which is a European Union-regulated broker and a registered Cyprus Investment Firm (CIF), XEMarkets
Provides its services according to the strict financial standards prescribed by its chief regulator, the Cyprus Securities and Exchange Commission (CySEC), where it is registered under the license number 120/10;
Has full EU-authorization, including
FSA UK Financial Services Authority (FSA) UK, under registration number 538324
BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht), Germany, under registration number 124161,
CNMV (Comisión Nacional del Mercado de Valores), Spain , under registration number 2010157773,
AFM (Autoriteit Financiële Markten), Netherlands,
FI (Finansinspektionen), Sweden ,
FIN (Finanssivalvonta Finansinspektionen), Finland;
Embraces the investor protection measures described by the Markets of Financial Instruments Directive (MiFID);
Adopts clear procedures to categorize clients and assess their investment suitability for the sake of risk management;
Follows a best execution policy for executing trading orders on terms most favorable to clients;
Ensures trading transparency for its financial instruments by providing detailed information about trading conditions;
Collaborates with multiple liquidity providers to offer the best spreads and liquidity at all times;
Follows a no re-quotes and no extra commissions policy that could negatively affect clients’ investments;
Complies with the Markets in Financial Instruments Directive (2004/39/EC) for the prevention and suppression of money laundering and terrorist financing.
In the financial industry, the most essential requirement is the safety of clients’ funds. This is the reason why XEMarkets follows strict rules to safeguard clients’ interests as it
Keeps clients’ funds segregated from our company funds, in tier 1 banking institutions and ensures that these cannot be used either by us or by our liquidity providers under any circumstances;
Keeps clients’ funds in highly secure global banks with lowest credit risk;
Ensures high operation standards by submitting regular financial reports to CySEC and to the company’s financial auditor, KPMG;
Provides retail clients with additional protection through the Investor Compensation Fund in the case of company insolvency;
Uses an automated system for monitoring funds transactions and risk management for the sake of no negative balance, and thus protects clients from any losses bigger than their original investments;
Applies multiple transaction methods for funds withdrawals and deposits that guarantee transfer security and clients’ privacy through Secure Socket Layer (SSL) technology.”
Investor Compensation Fund
The Investor Compensation Fund, along with all the licenses given by major financial regulators, can guarantee you 100% safety of your funds. So, XEMarkets is obviously a perfect choice for those who values quality of service and want to feel secure when it comes to their money.
For more details on the Investor Compensation Fund, please read the protection statement.
