7 Benefits of Using a Regulated Trading Platform

If you’re planning to enter the world of trading and investments, finding the best trading platform is a must. However, with the wide range of trading platform options, it can be hard to choose the right one. If you’re planning to significantly reduce the number of trading platform options, the first thing you should look for is if it’s regulated.Although there are other factors to consider when looking for the right trading platform, looking for regulated ones can simplify the process.If you’re not familiar with the benefits of using regulated trading platforms, don’t hesitate to read the list below!

1. Enhanced Security

Regulated trading platforms comply with advanced security standards, which protect the users and their information. So, if you’re worried about your money, data, and other relevant information, you can guarantee that regulated trading platforms are secured.However, although these trading platforms are secured, you should still practise extra precautions to ensure that no one can access your accounts. Some of the most common security practises implemented by regulated trading platforms include two-factor authentication, regularly updated software, encryption for data protection, and network security and firewalls.

2. Investor Protection

Regulated trading platforms ensure strict rules to follow, and protect investors. Aside from the high level of security, licenced brokers are also required to segregate the business funds from the financial accounts of their clients. That way, when the business encounters challenges, its investors can still withdraw their money.In addition, brokers also ensure that investors are compensated if problems and issues aren’t resolved immediately.

3. Transparency and Fair Trading Practises

Regulated trading platforms, such as TradingView, also hold to high standards of transparency. They provide all the information related to the terms of their service, spreads, additional fees, and potential risks. This prevents them from including hidden fees and ensures that their clients are aware of everything they pay.On the other hand, if you settle on a non-regulated trading platform, you may be surprised by risks, such as insider trading, identity theft, and price manipulation. So, before you entrust your capital, time, and effort to a trading platform, make sure they can provide transparency at all times.

4. Dispute Resolution Mechanisms

Trading may not always be as smooth as expected. Fortunately, regulated trading platforms require clear mechanisms of how to resolve disputes fairly. Additionally, if the issues weren’t solved by the broker, the client can directly file their complaints to the regulatory authority to address the problems and act as the neutral side between the broker or trading platform, and the client.However, most issues are usually solved by the brokers. Besides, they aspire to provide the best customer service experience, so cases are less likely to escalate to the regulatory authority.

5. Access to Reliable Financial Instruments

One of the main goals of traders, beginners and professionals, is to diversify their portfolios. Fortunately, regulated trading platforms feature stocks, forex, commodities, and cryptocurrencies. So, no matter what financial instrument you want to explore, you can guarantee that regulated trading platforms can provide the real ones, instead of the fabricated offers.

6. Compliance with Regulations

If you want to stay away from illegal activities, a regulated trading platform is a great way to go. With anti-money laundering and knowing your customer regulations, trading platforms can implement a safer environment for all traders. At the same time, you are certain that you’re contributing to the betterment of the trading industry.Meanwhile, unregulated trading platforms don’t bother illegal actions, such as money laundering, fraud, and other illicit activities. Instead, they encourage as many of these activities as possible since they can help the platform and broker become successful.

7. Peace of Mind

Wouldn’t it be nice if you didn’t have to worry about the risks of using a trading platform? Peace of mind is one of the priceless things a regulated trading platform can provide. Knowing that you’re using a safe platform to manage your trade, test your strategies, and keep your money, all you have to worry about is thinking of the market volatility and the effectiveness of your trading strategies.On the other hand, unregulated trading platforms will make you worry about whether you’ll lose all your money and hard work anytime. At the same time, your personal information, and other data may also leak. So, if you’re looking for the right trading platform, it’s best to stick with the regulated ones.

Final Thoughts

Trading is complicated enough, and it’s even complicated if you’re choosing to use an unregulated platform. Meanwhile, a regulated trading platform has enhanced security, investor protection, transparency, dispute resolution mechanisms, reliable financial instruments, compliance with regulations, and peace of mind.As you embark on your trading journey, choose a regulated trading platform that should be on top of your list to ensure that your finances are safe.