As the Forex Exchange Market is a non-centralized OTC market, proper brokerage regulation is a top issue for all Forex traders and partners. An effective regulation requires a reliable regulatory authority with sufficient resources, capable of closely monitoring its members.
Regulatory authorities control Forex brokers in order to ensure the implementation of proper business practices. They can impose high penalties or even withdraw a license at any time. This means Forex brokers have a serious incentive to conduct business with ethics and transparency.
Eleven (11) Regulatory Authorities Around the Globe
These are the most popular regulatory authorities of our financial world:
- FCA UK (Financial Conduct Authority –United Kingdom)
- CySEC (Cyprus Securities and Exchange Commission -Cyprus)
- FINMA (Swiss Financial Market Supervisory Authority –Switzerland)
- ASIC (Australian Securities & Investments Commission -Australia)
- FMA (Financial Markets Authority -New Zealand)
- FSA (Financial Services Agency -Japan)
- CFTC (Commodities Futures Trading Commission -US)
- NFA (National Futures Association -US)
- FSB (Financial Service Board –South Africa)
- IFSC (International Financial Services Commission –Belize)
- FSC (Financial Services Commission - British Virginia Islands)