Forex regulators monitor and manage the market. They protect traders from illegal and unfair actions of brokers and develop legislation aimed at the integrated regulation of financial markets.
Brokers’ regulators issue licenses, certificates and other necessary permits that confirm that the broker company complies with the requirements established by the regulatory organization.
Let’s have a look at the reputable regulators from different countries:
- FCA (UK). FCA founded in April 2013 strictly controls over financial institutions and Forex markets. The principal goals of FCA are to provide safe services in the financial segment, preserve the financial structure of the UK and maintain competition. The Forex brokers licensed by FCA should have a significant capital and provide financial statements on a monthly basis. Otherwise, the regulator is entitled to revoke the license. In addition to that, it may conduct regular inspections to determine the quality of services provided to users.
- CFTC and NFA (U.S.) CTFD was founded by the Congress about 40 years ago as a US federal agency. NFA started its activity with the participation of the CTFD and also has a great influence on the processes of the Forex market.
- CySec (Cyprus). It controls companies in Cyprus and the European Union which require access to the financial market. The organization issues licenses for the legalization of various types of activities relating to the financial market after the company complies with the relevant requirements, i.e. it should strictly adhere to all MiFiD directives.
- BaFin (Germany). BaFin Regulator founded in 2002 is the leading German organization with impeccable reputation that controls the country’s financial markets. It guarantees the reliability and transparency of a broker company. It helps to minimize the risk of fraud and deception by brokers and imposes strict sanctions in case of violation of the established rules by the controlled companies.
Top-5 Reputable Brokers
When choosing a broker, make sure it has a license from a reputable regulator. In this case, you’ll protect your assets from any fraudulent activity.
- FxPro licensed by FCA and DFSA. It offers more than 60 currency pairs, 10 indices, 6 metals and various partner programs.
- FXTM licensed by FCA and CySec. The broker provides favorable trading conditions, comprehensive education and high-class trading tools.
- ForexMart licensed by BaFin. The company provides traders with a high-quality customer support, payment systems, and a wide range of analytic tools.
- RoboMarkets licensed by BaFin. The broker attracts users by its bonuses, partner programs, and various trading instruments.
- Easyforex licensed by ASIC. The company gives access to international markets to its customers. It offers a competitive level of spreads, no commission fees, bonuses for the most active participants and other features.
Do you pay attention to a regulator when choosing a broker? Share your ideas and comment. Your feedback is important, especially for newcomers.