Is it safe to use a currency broker, and is my money safe?
Yes – but check that they are registered with the FSA as an Authorised Payment institution. The industry became regulated by the Financial Services Authority on the 1st November 2009.
Not all brokers are registered however. You will be able to check this on the FSA site to see if the companies you plan to deal with are on the FSA’s list. Foremost Currency Group was one of the first brokers to be granted authorisation as an Authorised Payment institution.
What does this mean?
This means that all Directors and key staff are fit and proper to continue trading. Client funds are held in nominated, segregated client transaction accounts thus safeguarding them, and we have ring fenced sufficient capital to comply with the new legislation.
We have been fully vetted and are expected to maintain strict standards relating to capital requirements, safeguarding of client funds and the fitness and propriety of senior staff.
With regards to security of funds, our principle bankers are Barclays. All accounts your funds are held in, both in Sterling and foreign currencies, are nominated segregated ‘client transaction accounts’ with Barclays bank. This means all client funds are kept completely separate to our business accounts as required by the FSA.
The main reason funds are safe however, is because we don’t speculate. Many companies make their profits by speculating on the market, which is nothing more than an educated gamble and inherently risky. We simply make our profits on the margins we buy and then sell the currency at, so at no time are any of your (or our!) funds at risk.
The directors and staff at The Foremost Currency Group are pleased to have been granted FSA authorisation and welcome the opportunity to demonstrate the standards and procedures we have in place to ensure the highest possible levels of service to our clients.
Questions to ask a broker before doing any business
“Are you registered / authorised / regulated by the FSA?” Not all firms have yet been granted authorisation, so check the list.
“Are my funds kept in segregated nominated client accounts?” Safeguarding client funds is a requirement of the new directive, and segregated funds mean that your money is not lumped in with the company’s own funds. This gives you peace of mind that your funds are secure.
“How long have you been trading, and how many clients do you have?” It’s important to use a reputable firm that has an established history, and one that you feel comfortable with. Obviously the longer they have been around, the better the sign. Having a large number of customers for a long time can also help to allay any fears. Ask for client testimonials and indeed case studies to negate any concerns.
The Foremost Currency Group Ltd is fully compliant with the Financial Services and Markets Payment Services Regulations and is registered with the FSA (Financial Services Authority) as an Authorised Payment Institution; our FSA Registration number is 503906.
The Foremost Currency Group Ltd is registered in England and Wales (registered no. 5544575). Registered Office: Sutton Court, Church Yard, Tring. Hertfordshire HP23 5BB.
The Foremost Currency Group Ltd is fully compliant with HMRC (HM Revenue & Customs) Anti Money Laundering Regulations; our Money Laundering Registration number is 12219945.
If you are looking for the best exchange rates, send us an enquiry, and have a free consultation on what’s happening in the currency markets.