Important Forex Regulatory Bodies
Forex is one of the largest financial markets with more than $6 trillion daily trading volume. Many new traders join forex every day, making them susceptible to scams. Therefore, it is important for traders to use the services of forex brokers that are regulated by financial authorities in different regions. This will ensure the safety of their funds.
What do regulatory bodies do?
1. Provide license and supervise the broker: there are a set of standards that a broker needs to meet to get the license for offering their service. So being regulated ensures that the broker is reliable.
2. These regulatory bodies ensure that the brokers maintain strict segregation of traders’ funds. Segregation refers to keeping the funds of traders in the bank account which is separate from the operational account of the broker.
3. They enforce the suspension in case of infractions and are entitled to carry out strict procedures in case of any fraudulent activity.
4. They make sure that the brokers comply with the set standards of the regulatory body.
Important forex Regulatory Bodies:
These regulatory bodies cover all the areas of jurisdiction where most of the world’s trading brokerage businesses are located.
List of the regulatory bodies and a few forex brokers that are regulated by them:
1. CySec- Cyprus securities and exchange commission – Fxview, FXTM and HotForex
2. FCA- Financial Conduct Authority (London) – XTB, CMC Market, and Admiral Markets
3. FSA- Financial Services Agency – Fxview, EasyMarket, and Tickmill
4. HCMC- Hellenic Capital Market Commission (Greece) – AAAFx and Athens Market
5. FSB – Financial Service Board (South Africa) – FBS
6. IFSC – International Financial Services Commission (Belize) – RoboForex and FBS
7. FSC – Financial Services Commission (Mauritius) – BDSwiss, FXTM
8. VFSC – Vanuatu Financial services Commission – Global Prime, Vantage, and FXPRIMUS
9. FINMA – Swiss Financial Supervisory Authority- Swissquote
How to check whether your broker is regulated?
1. Always look for the license number of the broker.
2. Always consider checking whether the license of the broker is still active or has been suspended.
3. Some of the regulatory bodies keep an updated list of regulated brokers. Prefer cross-checking there.
When choosing a broker, make sure to check if it is regulated or not because only a regulated broker can assure you of the safety of your funds and provide you with transparent pricing while trading. In a nutshell, you will trade hassle-free with a regulated broker!
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