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Forex Regulation

Regulation In Forex Trading

The risky Forex trading market, which involves trading currency pairs needs proper Forex regulation. The Forex industry closely works with the government regulatory bodies to provide adequate protection for investors and traders. 

However, you need to be extremely cautious because not all Forex brokers need to be regulated to provide Forex trading services. Different regulatory bodies have varied rules and regulations regarding Forex transactions. If you register with an unregulated Forex broker, you are simply risking all your money.

Forex Regulatory Bodies

forex regulationWith more than $5.3 billion traded every day, the Forex market is inviting new Forex brokers. 

The absence of a global body to constantly police the trading network 24/7 poses danger to the investors and traders. 

Many notorious Forex brokers operate with just a local license and they can abuse your money. 

From 2001 to 2008, numerous Forex scams came into the spotlight, following which Commodities Futures Trading Commission (CFTC) came up with stringent regulations. 

According to the Commodity Exchange Act(CEA), CFTC has jurisdiction over all leveraged Forex transactions in the USA. All online Forex dealers in the USA must meet the financial standards of the National Futures Association (NFA).

Forex Regulation in the UK, the Financial Conduct Authority (FCA) is responsible for imposing Forex regulations. The Markets in Financial Instruments Directive (MiFID) in the UK plays a vital role in financial regulations in the whole of Europe. 

In Australia, the forex transactions are governed by Australian Securities and Investments Commission (ASIC) and in

 Japan, Financial Services Agency (FSA) monitors FX transactions. 

The government bodies – Investment Industry Regulatory Organization of Canada (IIROC) in Canada

Cayman Islands Monetary Authority (CMA) in the Cayman Islands.

Securities and Futures Commission (SFC) in Hong Kong

Monetary Authority of Singapore (MAS) in Singapore regulate the forex brokers. 

The financial regulatory body of Cyprus, CySEC has comparatively looser regulations and this attracts many foreign forex brokers to register with CySEC.

Forex brokers who register under the jurisdiction of the regulatory bodies must comply with the rules and regulations to obtain a license. The regulations ensure that the brokers are audited regularly and their clients are updated on the changes in the policies.

Always choose regulated Forex brokers

forex regulationThe regulatory bodies strive to ensure fair and ethical Forex trading practices. 

The Forex broker must comply with all the rules and regulations in order to work with a license.

Potential traders can’t be persuaded using outlandish offers by licensed and regulated Forex brokers.

If you are interested in forex trading, you should always find a licensed and regulated broker. 

You can easily identify those brokers because they will have their license number and regulatory body clearly visible on the website. It is best to stay away from brokers, who don’t provide licensing information. 

All Forex brokers on our website are regulated and are in good standing with the regulator body they reside in. Forex regulation is one of the most important points when choosing a Forex broker.

Forex Regulatory Bodies by Country

CountryRegulatory Bodies
AustraliaAustralian Securities and Investment Commission (ASIC)
 International Financial Services Commission (IFSC)
British Virgin IslandsBVI Financial Services Commission (FSC of BVI)
BulgariaFinancial Supervision Commission of Bulgaria (FSC Bulgaria)
CanadaCanadian Investor Protection Fund (CIPF)
 Investment Industry Regulatory Organization of Canada (IIROC)
CyprusCyprus Securities and Exchange Commission (CySEC)
DenmarkDanish Financial Supervisory Authority (Danish FSA)
Dubai, UAEDubai Multi Commodities Centre (DMCC)
 Dubai Gold & Commodities Exchange (DGCX)
 Dubai Financial Services Authority (DFSA)
 Emirates Securities and Commodities Authority (SCA)
FranceAutorite des marches financiers (AMF)
 Banque de France
 Credit Institutions and Investment Firms Committee (CECEI)
GermanyFederal Financial Supervisory Authority (BaFin)
Hong KongSecurities and Futures Commission (SFC)
IrelandCentral Bank of Ireland
ItalyCommissione Nazionale per le Societa e la Borsa (CONSOB)
JapanFinancial Services Agency of Japan (FSA Japan)
 Japan Securities Dealers Association (JSDA)
 Japan Investor Protection Fund (JIPF)
 Tokyo Commodity Exchange (TOCOM)
MaltaMalta Financial Services Authority (FSA in Malta)
New ZealandNew Zealand Exchange (NZX)
 Serious Fraud Office (SFO)
 Financial Services Complaints Limited (FSCL)
RussiaFFMS in Russia (FCFR)
SwedenSwedish Financial Supervisory Authority (Swedish FSA)
United KingdomUK Financial Services Authority (FSA UK)
 Financial Services Compensation Fund (FSCS)
United StatesCommodities and Futures Trading Commission (CFTC)
 National Futures Association (NFA)