One of the most important criteria for traders when choosing a Forex Broker is the regulatory status of the broker and under which regulatory body it is governed. There are Forex regulation organizations in many different countries but often a Forex broker will receive only a local licensing until the valid regulation comes through.
This can take quite a bit of time as Forex broker regulators delve deep into the fiscal condition of the brokerage and thoroughly investigate the past experience of the CEO and other key figures in the firm.
In addition to a local Forex regulation, some brokers find it important to acquire memberships from professional and governmental bodies such as Markets in Financial Instruments Directive MiFID , a European Union law that provides harmonized regulation for investment services across the 30 member states of the European Economic Area and the Investor Compensation Company Limited ICC , a subsidiary of the Securities and Futures Commission which was established to provide adequate funds out of which eligible investors of failed investment firms are compensated.
Oftentimes this is not so readily found and a trader must turn directly to the broker for this information or can look for the information on one of the available of online websites that list Forex brokers and their Forex regulation. In an effort to simplify this search, DailyForex. Want to get in-depth lessons and instructional videos from Forex trading experts?
Register for free at FX Academy, the first online interactive trading academy that offers courses on Technical Analysis, Trading Basics, Risk Management and more prepared exclusively by professional Forex traders. Report Broker Scams Forex Widgets.
Australian Securities and Investment Commission. Cyprus Stock Exchange Commission. Markets in Financial Instruments Directive. Securities and Futures Commission. Badan Pengawas Perdagangan Berjangka Komoditi. Swedish Financial Supervisory Authority Finansinspektionen.
Dubai Multi Commodities Centre. Financial Industry Regulatory Authority, Inc. Top Online Forex Brokers. Free Forex Trading Courses Want to get in-depth lessons and instructional videos from Forex trading experts? Sign up to get the latest market updates and free signals directly to your inbox. Enter your email address here:More...