A lot of forex brokers that not regulated by forex broker regulators are filling the Forex market intending to profit. This has put regulators into tighter controls throughout the forex industry. The smarter traders plus the imposition of stricter regulations led to the unregulated broker to stop operating or get regulated.
So the main decision you need to do as a trader is by knowing the license of a broker so that you can trade safely under their platform. Knowing the reputation of the organization that licenses them is also important.
The regulatory body that oversees a broker’s business activity is indicated by a broker’s license. Since these licenses are not valued and recognized equally, for a new broker, it is highly significant to know the difference between many regulators.
Knowing Best Forex Broker Regulators in the World
It is a good idea to double-check the broker’s license before signing up or a trading account to save your investments. You can check whether your broker is regulated by these reputable authorities to ensure the safety of your funds.
1. CFTC (Commodities
The biggest financial market is owned by the United States globally, and the Forex market is just one part of it. The US also enforces the strictest regulations on the forex market. The US’s excessively leverage FX trading is under the control of the CFTC (Commodity Futures Trading Commission).
In 1974, this agency was formed to protect commodity and futures traders. Forex traders are also protected because futures are a currency market. Until now, it has transforming in an effort to improve trading conditions and develop a fair playing ground for market participants.
2. NFA (National Futures Association)
Compliance in the US is overseeing by the second top organization which is the NFA. It is the industry developed in 1982 as the regulator of the futures market. The NFA is a non-governmental organization and operates independently and not depend on citizen taxes.
The CFTC which is the government agency under the US future industry always monitors NFA’s activity. This one of forex broker regulators oversees the strict adherence of forex brokers to financial standards and acts as the CFTC’s extentions.
3. FSA ( The Financial Services Authority)
Despite the increased regulation on the European market lately, Europe is always becomes the best region for brokers. It ensuring the trader’s fund is safe. Because the favorable environment gave by the European Union, brokers who are not regulated by a regulator body choose Europe.
Other Best Forex Broker Regulators
There are still several reputable and advanced regulatory authorities you need to know so that you can choose the right and the best forex broker to cooperate with and become a successful trader with a great strategy.
4. FINMA (The Swiss Financial Market Supervisory)
One of the most trusted financial systems around the world is the Swiss financial system. But, as the 2009 crown scenario reveals, the forex industry does not among the rank of the safest in the world.
The scandal made the SFBC (Swiss Federal Banking Commission) authorized by the Swiss government to regulate and cancel the Swiss Forex trading. This led to the creation of the FINMA which coordinate with regulatory bodies of the country.
It also functions as the multitude of banks around the world. A Large and strict amount of credentials are required as a qualification for a broker to open the account in the country. The licensing process must adhere to strict banking standards.
5. CYSEC (Cyprus Securities and Exchange Commission)
In the major Middle Eastern financial markets, Cyprus is the broker’s top destination. It is the gateway for brokers to reach the gateway into Europe and can help them to be licensed easily. It is a regional forex hub.
Choosing a reputable broker like didimax
forex broker is important to become your partner in forex trading. With a lot of advantages provided, you can start trading in easy steps. Always choose brokers that are regulated by the best forex broker regulators.