Forex Trading in Greece and HCMC Forex Brokers
Greece has been having a rough time of things lately. but things seem to have settled down and it looks like the country has been able to weather the storm. If you’re looking for a great way to invest some of your hard-earned cash you may be wondering whether Greece is the best place to be making an investment. Forex trading is an option regardless of where you may be living, as it is an investment you are able to make online. The troubles that have befallen Greece recently seem to have had little impact on the popularity of Forex trading. If you’re one of the increasing number of prospective investors looking for Forex brokers in Greece, you need to be considering HCMC-regulated brokers.
The HCMC ensures that investors are protected.
The Greek regulatory body with responsibility for Forex brokers in Greece is the Hellenic Capital Market Commission, or the HCMC. It was established as a legal entity following the passing of Law 1969/91, which was subsequently amended by Law 2324/1995. The Commission was created to ensure that investors benefited from increased protection, and to work towards the goal of an orderly and efficient capital market. It is actually one of three regulatory bodies responsible for financial markets, one of the other bodies being the Bank of Greece.
The Commission has a number of responsibilities, but for you the most important will be the licensing, monitoring, supervision and control of capital market intermediaries, which of course includes HCMC Forex brokers.
How HCMC-regulated brokers fit in with European regulation
As Greece is a European Economic Area (EEA) member state, you as a trader are able to enjoy increased peace of mind from various European Directives. One of these is the Markets in Financial Instruments Directive, or MiFID, which regulates firms providing services relating to the buying and selling of financial instruments such as bonds, shares, and derivatives. Not only that, but it also regulates the locations of such transactions. First applied in 2007, it is currently undergoing a process of revision, with a new Directive to come into force possibly in 2017.
MiFID was created with the aim to harmonise European financial markets and to increase the number of cross-border investment orders. One of the ways this is done is by imposing a minimum standard for financial regulations across all member states, thereby being able to award passporting rights to all EU regulated brokers. This allows such brokers to offer their services across all EEA member countries.
How to pick the best Forex broker in Greece
One of the most important decisions you’ll have to face when you first start Forex trading is the one that involves choosing a Forex broker with which to do business. Interest in Forex trading has increased rapidly over recent years, and there are hundreds of Forex brokers to choose from. It would be easy to just randomly pick a name from an online search, but if you spend some time doing your research it will pay dividends. We’ll let you in on a secret here, and share some features you need to be considering…
This is a feature that will always be at the top of our list, but for many new traders it is something that is often forgotten. Unfortunately, Forex trading has gained a reputation for being plagued with scams, and dishonest and untrustworthy brokers, and if you spend a little time doing some online research you’ll find plenty of traders with tales of woe. Problems and delays with withdrawals, withholding of client funds, and others simply disappearing with all their client’s money are just a few examples of what can happen if you choose an unregulated broker. It is possible to reduce the risk of these unfortunate scenarios by choosing HCMC Forex brokers. Brokers regulated by the HCMC or other regulatory bodies are more likely to keep client funds in segregated accounts, which means it is not possible for these funds to be used to repay company debts. There will also be certain procedures in place to deal with customer complaint,s as well as compensation funds to cover certain types of losses.
Choosing a regulated broker rather than one with no controls will provide you with peace of mind, knowing you are benefiting from the best possible standards, including capital requirements. Deposits have to be handled in a certain way, which often means they are kept in segregated accounts, and the broker will comply with an accepted code of conduct; whereas choosing an unregulated broker means you will be running the risk of never seeing your money again.
Obviously, your chosen Forex broker in Greece isn’t going to be providing a service for free, which means you need to be aware of how much your trading is going to cost. Charges are often levied via the spread, but your broker could also charge additional fees and commissions. You may find you have to pay a fee for deposits and withdrawals, and there may also be a charge for positions left open overnight. All these charges have to be taken into account as they can have a significant impact on your profit margin.
Safety of your funds
Once you’ve made your choice of Forex broker, you want to be able to concentrate your attention on making trades. You need to feel confident that your funds are safe and will be accessible when you need them. This is possible if the broker uses segregated accounts, and you should know that this is generally a requirement for regulated brokers. Should the worse happen and you find yourself needing to make a complaint, and possibly need some form of compensation, a regulated broker will generally be a member of a compensation scheme and have a standard procedure for dealing with customer complaints.
Anyone looking for a reliable Forex broker in Greece should first consider those that are HCMC-regulated. It is quick and easy to check the validity of any claims by visiting the HCMC website, so you’d be mad not to take the opportunity.