Wondering Whether Forex Trading in Greece is a Sensible Choice? Read our Guide to HCMC Forex brokers
Greece has been not been in the news recently and you may be wondering whether its troubles are over. It seems the country has managed to weather the storm but is it a sensible location for investment? Trading in the Forex markets is an investment option wherever you may be located and it seems the recent troubles in Greece have had little effect on the popularity of Forex trading. Much like anywhere else in the world one very important consideration before you start trading is to find the best Forex broker. And Greek traders need to look for HCMC regulated brokers.
What is the HCMC?
The initials HCMC stand for the Hellenic Capital Market Commission and is the Greek financial regulatory body. The Bank of Greece is also a regulatory body for the financial industry but those of you looking for regulated Forex brokers in Greece should be more interested in the HCMC. The Hellenic Capital Market Commission was set up as a legal entity following the passing of Law 1969/91 and further organized by Law 2324/1995. The aim of the Commission is to ensure the protection of investors and work towards the goal of orderly and efficient operation of the capital market. The responsibilities of the Commission are varied but those of interest to Forex traders include licensing, monitoring, supervision, and control of capital market intermediaries.
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HCMC Forex brokers and European regulation
Traders in European Economic Area states are also able to enjoy peace of mind from European Directives. Recent legislation known as MiFID, Markets in Financial Instruments Directive, regulates firms which provide services to clients in relation to financial instruments such as shares, bonds, and derivatives. It also regulates the locations in which the instruments are traded. It was first applied in 2007 and is currently under revision. The aim of MiFID is to integrate EU financial markets and increase the amount of cross-border investment orders. One way it is doing this is by imposing minimum regulatory standards for all member states, and by awarding passporting rights to all EU regulated brokers. Which means an HCMC regulated broker is able to offer services across the European Economic Area.
Tips for choosing the best Forex brokers in Greece
Choosing a Forex broker is one of the most important decisions you’ll make as a trader. The market in Forex trading has expanded rapidly in recent years and there are hundreds of brokers now fighting for clients. Rather than randomly picking a Forex broker, you should spend time doing some research in order to find a broker that best suits your needs. Let’s share a checklist covering all the most important aspects.
The world of Forex has gained a bit of a reputation for scams, dishonest and questionable brokers. You only need to do a bit of research and you’ll find countless tales of brokers delaying withdrawals, withholding client funds, and some simply disappearing off the face of the earth with all their client’s money. A number of brokers have also declared bankruptcy and used investor funds to repay debts. Choosing HCMC regulated brokers can protect you in some way from this type of problem as regulations insist client funds are kept in segregated accounts. A regulated broker also has to have some kind of process in place to deal with customer complaints. Along with having some kind of compensation fund to cover certain losses. Choosing a broker that has been licensed by the HCMC, or any other recognized regulatory body, means you can expect them to meet the best possible standards including capital requirements. This type of Forex broker in Greece will be required to handle deposits in a certain way, usually with segregated accounts, and act in accordance with accepted codes of conduct. The risk with choosing an unregulated broker is you run the risk of never seeing your money again. The Forex forums are full of such horror stories and it’s not going to do your confidence much good to become just another victim.
Choosing a Forex broker in Greece that shows itself to be transparent is important because you will be able to get all the relevant information upfront before you sign up and register for an account. You need to know what procedures are followed and as much about the broker’s operations as possible. If you get the feeling a broker is trying to hide something then walk away.
Be wary of hidden costs
Forex services aren’t something that is offered for free. You’re probably well aware of this fact, but do you know exactly how much you are going to pay for the privilege of using a brokers service? The main cost will be either in the form of the spread or the broker may charge a commission. However, there are a number of other costs you may have to pay, and these are often left out of the equation. How much will you have to pay if positions are left open overnight? Are there charges for making deposits and withdrawals? These extra costs are all going to have an impact on your profit margin.
How safe are your funds?
When Forex trading you want to be able to concentrate your attention on which trades to make. You don’t want to find yourself lying awake at night wondering whether you are ever going to see your money again. The safety of your funds can be greatly improved if a broker uses segregated accounts. And this is generally a requirement for HCMC Forex brokers. A regulated broker will be required to keep its client funds in separate bank accounts in a major bank. Regulated brokers are also usually required to be members of a compensation scheme. Which provides further protection, should the worse happen. The HCMC is the regulatory body for Forex brokers in Greece, and you’d be wise to look for one to safeguard your investment. It is possible to check whether a certain broker is regulated by HCMC by visiting the Commission’s website and performing a search.