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WHAT IS AN RB OR A FCM?
All FCM's (Futures Commissions Merchants) need to be registered with NFA (National Futures Association) and CFTC (Commodities Futures Trading Commission). By being registered with the CFTC and NFA the FCM's have the authority to hold clients funds and in so doing clients have the ability to go to either the NFA or CFTC in case of any irregularities from the FCM. (FCM's do not necessarily need to be registered with the NFA or CFTC, therefore each trader should ask the FCM if they are registered) Referring Broker or RB's offer necessary support and assistance as mediators between FCM's and traders when certain trade situations or challenges occur. RB's are a great source of information on how FCM's are operated, benefits and advantages of different FCM's, strength and weaknesses of FCM platforms and which may best suit you as a novice, intermediate or experienced trader. Each trader comes to the market with various amounts of capitol and may not understand the advantages and/or disadvantages of trading with so much leverage in such a volatile market. As RB's we can give you the information to help support you throughout your decision making process of which FCM to use and why. Whether you are a novice, intermediate or advanced trader brokerfx.net can offer you the products and services you need to help you achieve your Forex goals. If you feel your FCM or current RB are not supporting you as they should, let us help you find the right match according to your trading style. What is your investment for all the IA support? RB's refer clients to FCM's, and each FCM requires each trader per lot to pay a certain amount of pips (see Advantages and Benefits of FCM's) per trade, this is called the Spread. Whether you have the support of an RB or go direct to an FCM (without the same level of support) you will still pay the same amount of pips per trade. By using brokerfx.net as your RB, a win-win situation occurs for both the trading client and the RB. The same amount of capitol per trade is used, however, the trader is awarded with extra information and support through continuing RB support team. |