The conversation amongst Thai traders has been drifting in the recent past, though not only in terms of strategies or spreads. Increasingly, the debates are on trust. The trading fraternity is mostly looking out of the country at how other markets of the world put their financial operations in check. The Financial Conduct Authority in the UK which is characterized by stringent conduct rules and safety of investors has become a benchmark. Individuals already start to inquire about what the Thai market will be like in case a similar scheme were established.
Trading has never been without risk but Thai players have an additional uncertainty factor. In the absence of such extensive regulatory policy as the FCA one, there will always be the doubts regarding transparency and accountability. There are tales on the manner some traders believed they were dealing with legitimate brokers only to realize too late that it was not what it claimed to be. This is the type of vulnerability that endears the concept of increased supervision. A forex broker acting with more definite regulations would help calm the minds of the clients who are better off doing business than wondering whether their money is secure or not.
An FCA-style of supervision appeal is all about confidence. The whole experience is different when traders are aware that a broker must meet rigid requirements. In the UK this has assisted in developing a culture where the clients have somewhere to fall back if something goes awry. Thai traders now are speaking, why not us? They view regulation not as a restricting net but as a platform that cushions both the parties.
The reason why people have taken interest in the tougher rules is also concerned with the playing ground. In the absence of continuous monitoring, part of the platforms might go the extra mile at the expense of other platforms developing more efficient systems and equitable pricing. What makes this uneven landscape frustrating to the traders can be seen when they find less reputable companies scooping some clients just because of glitter promotions. Toughening up tends to weed out the noise, and those serious traders will find it easier to decide which platforms are worth their attention.
Naturally, regulation does not make things that easy. It needs force, action, and collaboration of the powers and players in the industry. Other experts also believe that excessive regulation might either stifle innovativeness or make trading less available. But Thai traders reckon the rewards are way more than the dangers. They indicate that the model proposed by the FCA has not destroyed competition in the UK. It has, at least, increased the standards and pushed companies to be responsible in innovation.
This debate is taking place within a context where the trading fraternity of Thailand is expanding rapidly. Never before have more people been entering the markets which sparked curiosity of financial opportunity and of the convenience of online platforms. Responsibility comes with such growth. Provided that the country would like to assure that new traders cannot become victims of fraud or unjustified aspects, the creation of the framework guided by best practices worldwide can become the logical step.
The way forward is unclear and yet it is certain that something is going on. Thai traders are keenly following what is occurring outside their territory. They desire that their market is safe, visible and just. A forex broker doing well under the given circumstances would not simply be a service provider. It would help create a healthier and more sustainable trading culture. And that is what many are calling for in Thailand.
2 Comments
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