Safety is always an important consideration when dealing with money. Transferring money internationally can present a security risk, so you want to be sure your funds are safe from cybercriminals and fraud. This is why it’s essential to choose the right forex broker. Here’s what to look out for to know your money is secure.

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This blog was first published in January 2020 and has been updated with new information for accuracy.

Online security breaches of a large scale have become more common. For financial services firms, protecting clients’ data and funds should be of paramount importance. To have peace of mind, you should check that the firm you are working with has the following security measures in place.

Forex regulation compliance

When it comes to a reliable forex provider, one of the most important things is regulation. Money transfer companies need to ensure that they stay up to date with all the relevant regulations, requirements and laws. They must also be licensed and registered with the correct regulatory institutions.

All forex businesses in the UK should be registered with HM Revenue & Customs (HMRC) as a money services business and authorised by the Financial Conduct Authority (FCA) as an authorised payment institution.

When choosing a forex broker, do thorough research and ensure they have the relevant accreditations. A professional looking website doesn’t mean that the broker is regulated by the relevant authorities – it’s always best to get the registration number and check for yourself. You don’t want to take any chances when it comes to your personal or business's finances.

Why is regulation important?

Regulatory bodies such as the FCA make sure that financial institutions behave fairly and ethically. They provide strict rules that must be followed to stay accredited. Stringent requirements and regular audits and checks ensure that if a forex broker is authorised by the FCA, they’re accountable and you are protected.

See also: The advantages of using a forex company for your SME

What is KYC (Know Your Customer)?

KYC is the process of verifying the identity of clients to prevent fraud. Any financial institution must conduct research into a potential client’s identity and intentions before providing them with services.

Fund segregation

FCA-authorised payment institutions have a responsibility to segregate funds. This separates your money from your broker’s, meaning that should a forex broker go bankrupt, your money is completely safe in a segregated account (known as a "safeguarding account").

Segregated funds give you complete peace of mind that your money will be returned to you in full.

See also: International money transfers: Top tips and advice from forex brokers

Online security

Your broker should have robust security measures to ensure your money is as safe and secure when transacting online.

Detailed information should be available on their website, but if not, call them to enquire about how they secure their online money transfers. Reputable forex providers should use advanced security protocols to encrypt your personal and sensitive data. Advanced algorithms are a means of fraud detection and prevention. In case of any fraud, your broker should take prompt action.  

Two-factor authentication

Security features, such as two-step verification are used to prevent hackers from accessing your accounts. An additional layer of security is added to the authentication process with this kind of authentication because, even if a victim's password is hacked, a password alone cannot pass an authentication check, making it harder for attackers to get into a person's devices or online accounts.

Use a strong password

No matter how good a website’s security measures are, passwords are a vulnerability in the security chain. They are only as good as you make them, so choose something unique and complex, especially when it comes to managing your money.

A strong password consists of a combination of uppercase and lowercase letters, numbers and special symbols, such as punctuation. It should be at least 12 characters long. Longer is recommended as far as possible.

Never use the same password for every site. If someone gains access to one site, they will have your password for all of them.

Online reviews

Before choosing your broker, research them online and read what others have to say about their services. Other clients’ experiences can inform your decision and set you at ease.

Reviews can back up your research into security measures and accreditations to give you complete satisfaction that your money is safe and secure.

Our forex department at Sable International is known for exceptional customer service, and we currently hold an average score of 4.9 out of five (based on more than 1,400 reviews).

We’d love to help you along your forex journey. Email forex@sableinternational.com or call +44 (0) 20 7759 7554 or +27 (0) 657 2153

Sable International is a fully regulated and registered financial services provider in South Africa, the UK and Australia.

We are a professional services company that specialises in cross-border financial and immigration advice and solutions.

Our teams in the UK, South Africa and Australia can ensure that when you decide to move overseas, invest offshore or expand your business internationally, you'll do so with the backing of experienced local experts.