Forex regulation in the European Union is fragmented and most countries tend to have their own local regulatory body that is in charge of monitoring foreign-exchange related business. Having said that, there is a specific law that encompasses certain standards that need to Estimated Reading Time: 9 mins Apr 14, · On April 1, , both of these agencies replaced the Financial Services Authority (FSA) as the financial industry’s regulatory bodies. The Financial Conduct Authority is a non-government agency funded by the firms they regulate, and they are accountable to a Estimated Reading Time: 2 mins Financial Institutions Commission - Province of British Columbia. Cayman Islands - Cayman Islands Monetary Authority. Chile - Superintendencia de Valores y Seguros. China, People's Republic of: China Securities Regulatory Commission (CSRC) China Banking and Insurance Regulatory Commission (CBIRC) People's Bank of China (PBOC) Colombia
Forex Regulation - Major Forex Regulatory Bodies and Agencies - Forex Training Group
It is important to regulate forex because the amount of money which passes through the market everyday makes it very attractive for all sorts of scammers and white collar criminals to pervade the marketplace. Many of these criminals have found that the easiest way to con would-be traders and active traders is by forming brokerage companies, taking in money from traders and finding ways to run off with it.
They run their scam operations by faking their regulatory status, cloning websites of genuine brokers and even going to great lengths to use the entire trading process against their clients. In order to ensure that only those qualified to do forex brokerage business are actually the ones allowed to take in money from clients, forex regulators have instituted various means of ensuring that clients are not robbed in plain sight by any fly-by-night operators.
The essence of regulation in the forex markets is to preserve the sanctity of the markets and asia forex regulatory body investor confidence by ensuring a level playing field for all participants. The need for forex regulation is reinforced by the fact that the brokers that provide liquidity for retail traders, take opposite positions to the trades of their clients, asia forex regulatory body. In such instances, forex regulators must ensure that the traders are not deliberately subjected to conditions that will tilt the market against them.
So what is forex regulation? Forex regulation is therefore all about consumer protection. Regulated forex brokers are less likely to cheat their clients and where such infractions happen, asia forex regulatory body, regulators are empowered by the laws of their respective jurisdictions to apply appropriate sanctions.
In asia forex regulatory body, it is not asia forex regulatory body to have forex brokers in every country.
The forex market is decentralized and therefore you will see some traders in countries not served by forex brokers, opening accounts with offshore brokerages willing to do business with them.
These traders, located in areas which are geographically separated from the brokers they deal with, therefore rely on forex regulation of these brokers to keep them safe, asia forex regulatory body. From this list, you can see that some of the forex regulators we have today are made up of independent government-formed agencies, and in some cases, asia forex regulatory body responsibility of regulation is taken up by the central bank of the host country.
New traders wishing to open their first forex accounts are usually the most vulnerable to fall prey to scam brokers. They have devised ingenious ways to lure their victims to their traps. That is why it is imperative for new traders to know how to check if the offer for a forex account is coming from a regulated forex broker. Unfortunately, many retail forex traders do not make the websites of the forex regulatory bodies their first port of call when they want to start forex trading.
They only check on the regulators when something has gone wrong along the way. So it is not just about how to trade forex; it is about securing your investment before you even get into the market.
So traders need to know who they are dealing with before they open accounts and deposit money with them. In case the trader did not do the required check on the broker beforehand and feels that he or she has been shortchanged by the forex broker, there are ways to seek redress. In conclusion, it can be deduced that the only way to ensure market sanctity at all levels is by the activities of forex regulatory bodies. For those who make it through the initial screening process, continuous monitoring and evaluation of performance using a series of tools for this purpose is carried out to ensure that the forex brokers maintain the highest standard of ethical operations.
Forex regulation serves to provide a level playing field for all participants. The only means of protection these traders have is the forex regulatory bodies. That is why it is imperative that traders perform the initial due diligence checks on the forex brokers they want to use by confirming their status with any of the regulators that have been listed above.
A new trend which is emerging in forex cheating by brokers is to claim regulation in a country. Usually, these scam brokerages open an office in a country and claim to be licensed and regulated in that country. Traders should not fall for this, asia forex regulatory body.
They should always follow the processes listed above to confirm the status of the broker namely:. These things should be done before depositing money with any forex broker. It could literally save you thousands of your precious trading dollars. Other important Forex Regulators by Country The Netherlands France Indonesia Uruguay Lebanon Bulgaria Phillipines British Virgin Islands Ireland Kuwait UAE Mexico Turkey Portugal Czech Republic Spain Luxembourg Dubai Estonia Latvia USA Russian Japan New Zealand Gibraltar Greece Hong Kong Malaysia Canada Singapore Hungary Estonia Russia USA Poland India Seychelles Related Articles Want to Know More About Forex Trading in Malaysia?
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, time: 9:25Forex Regulation: Regulatory Bodies Controlling Foreign Exchange
Forex regulation in the European Union is fragmented and most countries tend to have their own local regulatory body that is in charge of monitoring foreign-exchange related business. Having said that, there is a specific law that encompasses certain standards that need to Estimated Reading Time: 9 mins Financial Institutions Commission - Province of British Columbia. Cayman Islands - Cayman Islands Monetary Authority. Chile - Superintendencia de Valores y Seguros. China, People's Republic of: China Securities Regulatory Commission (CSRC) China Banking and Insurance Regulatory Commission (CBIRC) People's Bank of China (PBOC) Colombia Maximum Forex Leverage: Australia is a very popular offshore venue for Forex / CFD traders, due to its mixture of very high maximum leverage, solid but flexible regulatory framework, and large number of ECN brokers. What prevents many brokers from seeking ASIC regulation is the far geographic distance that makes it difficult for brokers
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