Which regulators can be trusted on Forex?Dwain Ross 09 / January / 20 Visitors: 66
Which regulators can be trusted on Forex?
When you are faced with the choice of forex broker, first of all you need to pay attention to the licenses that he received. Because this is one of the main signs of broker reliability. But not all licenses should be trusted. Every year regulators also becomes more and more and it is necessary to be able to sort correctly reliable from lime which created kitchens.
Broker License Value
Many brokers on their personal website state that the activity of the company is regulated by a certain regulator. In order to make sure that the information is reliable, it is necessary to personally go to the official website of the regulator and check whether this broker was actually issued a license and under which company. Because forex cuisine like to trick, namely, get a license for the parent company, and traders open on a subsidiary where there is no regulation and then the broker can do anything to him. In order to obtain a forex license, the forex broker must meet the following list of conditions, namely:
1. The brokerage company there should be a working room from 20 meters square.
2. Authorized capital. The size of which depends individually on the conditions of the state where this regulator is registered.
3. Officially arrange at least of 3 members of the company.
This is not a complete list of conditions for obtaining a license, but only the main requirements of the company. If the brokerage company has no licenses and regulatory bodies at all, we cannot say that they work illegally or illegally, because different states have different legislative frameworks. Having a license only reduces the chance to be fooled by not bona fide actions of the company.
The most authoritative regulators
It is worth relying and trusting regulators who are registered in the states where the law and law work. If the company of the regulator is registered in the islands where legal anarchy reigns, the activity of the company will be so. Conscientious regulators:
1) The NFA (National Futures Association) is an American Futures organization that has operated since 1976 and has proven its quality and reliability on several occasions. The NFA is actively fighting unscrupulous companies that engage in fraud, but their regulation applies exclusively to Americans.
2) CFTC (Commission Futures Trading Committee) is an American organization that specializes in securities and futures. It has a lot of weight in the United States. Companies that fall under its regulation, try in every way to solve the issue with the client personally, and do without the participation of the regulator. Because the CFTC organization can revoke its license at any time if there are reasons to do so.
3) FSA (The Financial Services Authority) is a UK-based organization that handles fin control. institutions in Great Britain. It has huge influence around the world. Therefore, in order not to put their company at risk, most brokers under FSA open only British and clients on individual requests, the rest are closed to a subsidiary that is located offshore.
4) FINMA (Swiss Financial Authority) is the Swiss state body that controls the work of financial institutions in the territory of the state. Without this license, forex companies do not have the right to carry out their activities in the territory of the state. 5) ASIC (Australian Securities and Investments Commission) - The Australian Securities and Investments State Commission oversees operations in financial markets. ASIC is responsible for detecting fraud. The regulator is famous for its rigour and fight against binary options in Australia
Any company that passes under the terms of the terms and conditions can obtain a license. Often forex companies receive the Nth number of licenses not for quality of service, but for image and additional clients. Because now people are more educated and understand that the company should be regulated by the appropriate body.