The forex market is a cross-border transactional business involving clients all over the world. Regulation is mandatory for the common interest of the traders & government business policies. This Regulation gets enforced on the brokers so that brokers can not cheat its traders or investors & partners.
Forex brokers usually get regulated or licensed from the operational countries. Multinational companies have multiple regulations as they operate from different countries.
Benefits
Forex market regulatory bodies, help traders from a legal aspect. Some top-level regulatory bodies hold the right to insured trader funds from brokerage bankruptcy via the client account fund segregation. Where the client’s funds are stored separately from the brokerage fund or company fund. Brokerage companies need to deposit a certain amount of the fund to the regulatory authorities.
So that if in future, a broker got bankrupt, then the trader can retrieve their money back from the broker with the help of forex regulatory authorities by law. Plus in case of any kind bad practice from the brokerage side, trader or investors can file a case against that broker.
Common issue
But there is one issue if you live in Australia & your broker got regulated from Europe. Then in case of any scam, you need to file a case under European law in a European court.
In such a scenario, case maintenance will be costly. Thus it is better to open an account with a brokerage service, who has an office in your country. So that you can easily reach over there in case of any dispute and file case under your country regulation.
Following are the all listed Forex regulatory bodies from different countries:
Country Name |
Forex Regulator |
|---|---|
| Anguilla | Anguilla Financial Services Commission |
| Antigua | Eastern Caribbean Securities Regulatory Commission (ECSRC) |
| Australia | Australian Securities and Investment Commission (ASIC) |
| Azerbaijan | State Committee for Securities (Azerbaijan) |
| Bangladesh | Securities and Exchange Commission (SEC) |
| Belgium | The Financial Services and Markets Authority (FSMA) |
| Belize | International Financial Services Commission (IFSC) |
| British Virgin Islands | BVI Financial Services Commission (FSC of BVI) |
| Bulgaria | Financial Supervision Commission of Bulgaria (FSC Bulgaria) |
| Canada | British Columbia Securities Commission (BCSC) |
| Canadian Investor Protection Fund (CIPF) | |
| Financial Transactions and Reports Analysis Center of Canada (FINTRAC) | |
| Investment Industry Regulatory Organization of Canada (IIROC) | |
| Ontario Securities Commission (OSC) | |
| Ombudsman of Banking Services and Investments (OBSI) | |
| Cayman Islands | The Cayman Islands Monetary Authority (CIMA) |
| China | China Securities Regulatory Commission (CSRC) |
| Croatia | Croatian Financial Services Supervisory Agency (CFSSA) |
| Cyprus | Cyprus Securities and Exchange Commission (CySEC) |
| Czech Republic | Czech National Bank (CNB) |
| Denmark | Danish Financial Supervisory Authority |
| Dominica | Financial Services Unit (FSU) |
| Dubai | Dubai Financial Services Authority (DFSA) |
| Estonia | The Financial Supervision Authority |
| Finland | FIN-FSA |
| France | Autorite des marches financiers (AMF) |
| Credit Institutions and Investment Firms Committee (CECEI) | |
| French Autorité de Contrôle Prudentiel et de Résolution (ACPR) | |
| Germany | Federal Financial Supervisory Authority (BaFin) |
| Greece | The Hellenic Capital Market Commission (HCMC) |
| Hong Kong | Securities and Futures Commission (SFC) |
| Hungary | Hungarian Financial Supervisory Authority (HFSA) |
| Iceland | The Financial Supervisory Authority (FME) |
| India | Securities and Exchange Board of India (SEBI) |
| Indonesia | Commidity Futures Trade Regulatory Agency (CoFTRA) |
| Ireland | Central Bank of Ireland |
| Isle of Man | The Financial Supervision Commission (FSC) |
| Israel | The Israel Securities Authority (ISA) |
| Japan | Financial Services Agency of Japan |
| Japan Securities Dealers Association (JSDA) | |
| Japan Investor Protection Fund (JIPF) | |
| Kenya | Capital Markets Authority (CMA) |
| Latvia | The Financial and Capital Market Commission (FKTK) |
| Lebanon | Banque Du Liban |
| Lithuania | The Lithuanian Securities Commission, Bank of Lithuania |
| Luxembourg | Commission de Surveillance du Secteur Financier (CSSF) |
| Liechtenstein | The Financial Market Authority Liechtenstein (FMA) |
| Malaysia | Securities Commission Malaysia |
| Malta | Malta Financial Services Authority |
| Mauritius | Financial Services Commission of Mauritius |
| New Zealand | Financial Markets Authority (FMA) |
| Financial Services Complaints Limited (FSCL) | |
| Nigeria | Securities Exchange Commission Nigeria |
| Norway | The Financial Supervisory Authority of Norway |
| Pakistan | Securities and Exchange Commission of Pakistan (SECP) |
| Panama | The Securities Market Superintence (SMV) |
| Philippines | Securities and Exchange Commission Philippines |
| Poland | Polish Financial Supervision Authority (PFSA) |
| Portugal | Comissão do Mercado de Valores Mobiliários (CMVM) |
| Romania | Romanian Financial Supervisory Authority (ASF) |
| Russia | Central bank of Russian Federation |
| Seychelles | Seychelles Financial Services Authority (FSA Seychelles) |
| Singapore | Monetary Authority of Singapore (MAS) |
| Slovakia | National Bank of Slovakia (NBS) |
| Spain | Comisión Nacional del Mercado de Valores |
| South Korea | Financial Supervisory Commission |
| Sri Lanka | Securities and Exchange Commission of Sri Lanka |
| St. Vincent and the Grenadines | The Financial Services Authority |
| Sweden | Swedish Financial Supervisory Authority |
| Switzerland | Swiss Financial Market Supervisory Authority (FINMA) |
| Thailand | Securities and Exchange Commission of Thailand |
| Turkey | Capital Markets Board – SPK |
| United Kingdom | The Financial Conduct Authority (FCA) |
| Financial Services Authority (FSA UK) | |
| United States | Financial Industry Regulatory Authority (FINRA) |
| US Securities and Exchanges Commission (U.S. SEC) | |
| Securities Investor Protection Corporation (SIPC) |
Conclusion
Broker regulated in your country:
It is always wise to choose a forex broker, who has a regulation under your country jurisdiction. This not just helps you in terms of legal aspects but also, you can communicate with the broker regionally.
Although as the forex business grows, nowadays most of the top forex brokers have regional marketing managers who can talk to you with your local language or mother tongue and can solve your problem efficiently.
Broker regulated outside your country:
If it is not always possible to get a broker under your country jurisdiction, in case, you can open a forex trading account with top international regulatory bodies like CySec. But from the legal aspect, if any scam happens, then you can need to file a case against that broker cross border or contact the regulatory bodies with your case.
If your forex broker is regulated under CySec, then you can complain to the authority with the link below:
