HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%
XM information and reviews
XM
82%

Most Important Forex Regulators in the World Today


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 job of forex regulators can be listed as follows:

The essence of regulation in the forex markets is to preserve the sanctity of the markets and boost 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. 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, regulators are empowered by the laws of their respective jurisdictions to apply appropriate sanctions.

The Most Important Forex Market Regulators

The most important forex market regulators cover the jurisdictions where most of the world’s forex brokerage businesses are located. In reality, it is not possible 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.

These regulators are as follows:

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, the responsibility of regulation is taken up by the central bank of the host country.

How to Check for Regulated Forex Brokers

New traders wishing to open their first forex accounts are usually the most vulnerable to fall prey to scam brokers. These days, many unlicensed brokers are seeking for ways to get their hands on new traders’ money. 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.

The following are ways to check for regulated forex brokers:

How Can Traders Make Use of Forex Regulatory Bodies to Secure their Forex Investments?

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. The broker is the entity that keeps traders’ funds in trust as they trade 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.

Forex Regulatory Bodies: Conclusion

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. The process of initial licensing is meant to ensure that criminals do not slip through the cracks in the first place to offer “brokerage services” to the consumers. 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. Many of today’s retail traders are trading with forex brokers located in countries far away from their own. 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. 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.

#source


RELATED

What should you know about cryptocurrencies?

eXcentral is expanding the number of assets and markets available for traders to invest in every month. One of the highest growing markets, if not the highest...

What Is Stop Loss and Take Profit?

Stop-Loss is a pending order used by traders to minimize risks. When analyzing the market, traders may misinterpret the asset price movement and incur losses...

Choosing the Right Financial Instrument to Trade

For any trader about to enter the markets, a crucial part of the process is deciding on a suitable financial instrument to trade on. Choosing the right market can help...

Why Choosing The Right Broker Is Critical

Forex trading is an equal opportunity vertical. There are no exams, no prerequisites, no prior experience needed to start trading. All you have to possess...

What Is Forex Trading? The Basic Input You Must Know

You have heard about forex trading, but do you know what is forex trading? Trading, no matter how lucrative people tend to talk about it, Forex isn't easy...

How to trade stocks with maximum outcome

Investing in stocks is an attractive way to become part of the world's best-known companies. However, not every investor knows how to trade stocks efficiently...

How to start trading in Forex for free: first steps

A simple web search query "how to trade in Forex" will yield dozens of on-site and online classes for beginners and traders of various experiences...

Why trade shares?

Why trade shares, continue to read and learn more. Trading shares involves buying and selling company shares listed on a stock exchange. Traders choose to trade shares...

Ultimate guide to trading Cardano for beginners

Cardano has been making waves in the crypto markets since its cryptocurrency, ADA, moved into the top ten largest crypto assets by market capitalisation...

Forex Trading Robots: Your Ultimate Guide to Forex Auto Trading

Nowadays, there are numerous trading approaches and systems both for trading on forex and CFD contracts. And since it all can be transformed into a computer algorithm, the number of automated...

Mastering Forex Trading: Time, Learning, and Success

Forex trading has emerged as a captivating endeavor, drawing individuals from diverse backgrounds into its dynamic and potentially profitable realm. For those considering entry into the world of forex trading...

A Guide to Demo Trading Accounts

Embarking on your trading journey is akin to stepping into a vast, dynamic universe with its own set of rules. Whether you aim to explore the realms of forex, delve into precious metals...

Best Day Trading Laptops in 2023

When discussing the requirements for successful trading, pro traders often mention having the right tools. A quality laptop is among such tools. A trader needs a good laptop just as much...

What do alpha and beta mean in investing?

Alpha and beta are indicators for evaluating the effectiveness of investments. Alpha measures the performance of an asset or a portfolio relative to the market...

Navigating the Transition from a Full-Time Job to Forex Trading

Embarking on a journey from a traditional full-time job to the world of forex trading is a path increasingly chosen by many. This decision, while potentially lucrative...

High-Frequency Trading (HFT) - Overview, Advantages, Risks

Everyone who is interested in financial markets, of course, knows about the existence of different trading methods. Some of them are quite popular, while not much is known about others...

Curbing your losses with Stop Loss and Take Profit

Trading on a stock exchange is always connected with great risks. That's where Stop Loss and Take Profit come into play: these are helpful tools used by traders to minimize...

How to Use Orderblock in Forex Trading?

An order block represents the process of collecting orders from financial institutions and banks. The forex market relies on central banks and major financial institutions...

CFD trading: Pros vs Newbies

It seems like everyone is opening a trading account, installing mobile apps and desktop trading platforms, and adding online trading CFDs to their financial activities...

Stop-loss: the lifeline of every trader

Stop-loss (SL) is one of the most important concepts in the Forex market. Every trader has the opportunity to benefit from this trading tool. It’s considered the last frontier...

FP Markets information and reviews
FP Markets
81%
RoboForex information and reviews
RoboForex
77%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Exness information and reviews
Exness
76%
Just2Trade information and reviews
Just2Trade
76%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.