Every Over The Counter and non-OTC financial markets have own regulatory framework. In this article you can read information about the basics of the forex regulation.

The trading of the forex contracts have different regulations in every country. Every country have own regulator bodies or independent institute who supervise and control the financial markets like forex in order to protect its clients.

We can talk about 4 types of forex regulation level:

  • Non-Regulated Countries where legistrators don’t regulate this activity. These are mostly Off-shore jurisdictions like Saint-Vincent. Mostly small or startup brokerages use this type of licenses because it doesn’t require high-investment in order to start a brokerage. It means non-regulated companies offer very low investor protection level. Also the lack of proper regulation can cause different types of deposit/withdrawal issues for clients because banks, payment providers don’t like to work with unlicensed companies in order to prevent scams and Anti-Money Laundering cases. Important to highlight, it doesn’t mean that all of this companies are bad or scammers, they’re just too small.;
  • Low Regulated Countries where legistrators know this activity but brokers don’t need to meet with high requirements in order to become licensed entity. These countries are for example Vanuatu and Belize. Pay & Get a License. The protection of clients are low as well.;
  • Well Regulated Countries where legistrators know very well the nature of the forex trading. So therefore brokers need to meet with high demands in order to get licensed. The forex regulator try to protect the investors from different type of rules in order to avoid clients if the broker goes to insolvency. Well regulated brokers hold the clients funds on segregated accounts fully seperated from the assets of the brokerage. Also this regulators offer help, if the broker breach the law against its clients. These companies are for example Australian, U.S. companies.
  • Highly Regulated Companies are mostly European Regulated Companies which are meet with the latter regulation and they offer Investor Compensation Funds as well. It means, the funds of the clients are insured up to €100,000 EUR per client by the governor state of the regulator. FCA UK and CySEC Cyprus are the most popular regulators under the European forex regulation framework, because many of brokers are running their business from there.

The list of most popular Forex Regulators:

  1. Anguilla Financial Services Commission: http://www.fsc.org.ai/
  2. Antigua – Eastern Caribbean Securities Regulatory Commission (ECSRC): http://www.ecsrc.com/
  3. Australian Securities and Investment Commission (ASIC): http://www.asic.gov.au
  4. Belgium – The Financial Services and Markets Authority (FSMA): http://www.fsma.be/
  5. Belize – International Financial Services Commission (IFSC): http://www.ifsc.gov.bz/
  6. British Virgin Islands: BVI Financial Services Commission (BVI FSC): http://www.bvifsc.vg/
  7. Bulgaria – Financial Supervision Commission of Bulgaria (FSC Bulgaria): http://www.fsc.bg
  8. Cayman Islands – Cayman Islands Monetary Authority (CIMA): http://www.cimoney.com.ky/
  9. China – China Securities Regulatory Commission (CSRC): http://www.csrc.gov.cn/
  10. Cyprus Securities and Exchange Commission (CySEC): http://www.cysec.gov.cy/
  11. Germany – BaFin: https://www.bafin.de/
  12. Hong Kong – Securities and Futures Commission: http://www.sfc.hk/
  13. Ireland – Central Bank of Ireland: http://www.financialregulator.ie/
  14. Israel – Israel Securities Authority (ISA): http://www.isa.gov.il/
  15. Malaysia – Securities Commission Malaysia: http://www.sc.com.my/
  16. Malta – Malta Financial Services Authority: http://www.mfsa.com.mt/
  17. Mauritius – Financial Services Commission of Mauritius: http://www.gov.mu/
  18. New Zealand – Financial Markets Authority: http://www.fma.govt.nz/
  19. Nevis – Nevis Financial Services: http://www.nevisfinance.com/
  20. Nigeria – Securities & Exchange Commission Nigeria: http://www.sec.gov.ng/
  21. Seychelles – Seychelles Financial Services Authority: http://www.fsaseychelles.sc/
  22. St. Vincent and the Grenadines – The Financial Services Authority: http://svgfsa.com/
  23. United Kingdom – The Financial Conduct Authority (FCA UK): https://www.fca.org.uk/
  24. United States – Commodities and Futures Trading Commission: https://www.cftc.gov/
  25. United States – National Futures Association (NFA): http://www.nfa.futures.org/
  26. Vanuatu – Vanuatu Financial Services Commission: http://www.vfsc.vu/