The Forex security and regulation is a sort of the general financial regulation that controls the functioning of a decentralized foreign exchange market. Since Forex is a global market, the regulation is more complicated here than on other financial markets, for example, stocks or futures. Somehow, there are authorities that regulate the exchange activities and keep fraudsters away of traders.
The team of JustForex is here to tell you about how it’s done.
The main goal of the Forex regulation is ensuring that brokers work legally and fairly. Regulated brokers pass evaluations, audits and reviews to continue their work on the global market. They also have capital requirements to prove their solvency and the ability to pay out clients’ funds in case of bankruptcy.
Some countries have special regulatory bodies:
1. US National Futures Association.
2. US Commodity Futures Trading Association.
3. UK Financial Services Authorities.
4. Swiss Federal Department of Finance.
5. Australian Securities & Investments Commission.
These bodies provide the most strict regulation, but they take away an opportunity of conducting bonuses or contests by brokers.
Still, there are authorities that combine both regulatory duties and freedom for actions and bonuses. These are:
1. International Financial Services Commission (IFSC) in Belize.
2. Cyprus Securities and Exchange Commission (CySEC).
3. Financial Markets Authority (FMA) in New Zealand.
Many companies register with those offshore regulators as their regulation is mild enough to work fruitfully, but justly.
So, you don’t need to be afraid of the phrase “an offshore regulator”. It doesn’t mean that a company is unregulated at all. It just gives you more opportunities as well as provides good security for your funds.
Everything we can advise is beware of unregulated brokers.
Check their regulation on their websites. Companies usually write about them and specify the number of license.
And since you’ve found out that a broker you want to work with is the regulated one, go on and make money safely!