Forex Broker Regulation – Chapter 3 | Learn Forex

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:


External Link:

How to complain to Cysec

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