Why Do Forex Brokers Ask People Whether They Are Politically Exposed Persons During Registration?
That question usually pops up during registration. I would like to know why.
They don’t offer their services to politicians. They are afraid of the problems it can have for them.
Politically exposed persons may not be accepted to be registered since some military dictators may instruct their bank governors to give orders to banks not to give any money the exposed person has ln bank.This means they are not allowed to do forex trading.
It may have something to do with laws in the country of operation as I do not remember seeing this when I signed up with my broker.
A lot of the time it is also related to a form of insider trading. For example if you were privvy to news on a country going into a severe lockdown wouldn’t you sell the currency just before it was announced to the market!!
At some point, I thought the reason was that politicians have great advantage of success over non-politicians
As long as I can remember, I never asked those questions when I joined two forex brokers. Does the forex broker start to ask this question just recently?
Definitely, politics has a direct bearing on currency and stock markets. I guess they want to assess, if there could be any risks
Brokers are afraid of politicians, they can expose them to laws and put them into trouble. So they avoid all those things.