As the online trading industry matures, we find global regulators propelling online brokers into direct competition with the more established bricks-&-mortar companies that have engendered repeated structural breakdowns due to impropriety, lack of transparency and questionable behaviour – at best. The Great Depression of 1929 and the Financial Meltdown of 2008 come to mind – situations where worthless tocks were thrust upon an unsuspecting public, in the former case, and systematic fraud, in the latter.
Now, with independent investors able to trade freely on financial markets, the burden of responsibility is shared between the financial establishment and the trader.
At Trade360, we take this responsibility seriously, as is evident through our spreading network of regulatory activities. That’s why we strongly abide by our regulatory framework, maintaining segregated accounts and being a member in the Investor Compensation Fund.
Anti-money-laundering regulations, know-your-client requirements, client appropriateness tests and more are other tools in our arsenal; others include trading limits, such as negative balance protection, and educational tools, to provide newer traders with a knowledge base from which they may depart further into understanding how markets work.
However, there are specific steps that you, the trader, need to take in order to ensure that you are trading responsibly.