Forex regulators are structures designed to monitor the relationships of Forex Market participants. First of all, Forex Regulators issue licenses for the right to operate and monitor the implementation of laws in this field, as well as certain standards of jurisdiction. In order to obtain the Regulator’s license, the broker must fully disclose the origin of the money, provide data on TOP management, open a representative office in the Regulator’s country and make a cash contribution. Some Regulators form a certain compensation fund from such contributions.
The main tasks of Forex Regulators are prevention of fraud by all market participants and observance of financial security. In addition, they monitor the possible penetration and use of insider information, as well as the overvaluation of prices produced «artificially». Issuance of Licenses for the right to carry out activities in the field of financial market by all its participants, development of normative acts designed to clearly define the rights and obligations of all market participants, as well as calls for interaction between them. Forex Regulators have a duty to resolve contentious situations and make decisions when settling disputes, handling collective complaints; checking brokerage reporting, periodic or scheduled staff re-certification, and more.
Forex regulators are very different. It is one thing, the UK license (FCA), and quite another license of some unknown offshore. The cost of the license is also different. At some Regulators the license is sold at the price of a new cool car, and the license at another – is equal to the price of the paper on which this license is printed. In this regard, it is also possible to talk about the reliability of a Regulator.
List Of All Regulators
About CySec Financial Regulator
Forex brokers in Cyprus are regulated by the “Cyprus Securities and Exchange Commission” (CySEC), the sole supervisory and regulatory authority of the country established in 2001, which supervises and grants licenses to Forex brokers to ensure the conformity of their operations to the laws. Cyprus is a member of the European Union which enables all CySEC Forex brokers to expand their services throughout the European countries; therefore, they must adhere to European MiFID financial guidelines. Under CySEC laws, traders’ funds must be kept in segregated accounts, completely separate from Broker’s funds, at top-tier European banks for extra protection. Moreover, Cyprus brokers are a member of ICF (Investor Compensation Fund) which ensures clients’ funds up to 20,000 Euro.
About FCA Financial Regulator
The foundation of the FCA financial regulator came in April 2013 thanks to the reform of a structure such as the FSA (British Financial Regulation and Oversight Authority). On this basis, several regulatory organizations have been established. Namely: Financial Conduct Authority (abbreviated FCA) and Forced Supervision Company (PRA). Although the functional features still coincide with the previous activities of the office, except for only small changes. The main function of the newly created regulator is strict control over financial institutions and tracking of markets.
About MIFID Financial Regulator
The Markets in Financial Instruments Directive (known as MiFID), is a form of legislation governing the financial markets in the European Economic area – which includes all 28 EU member states plus Iceland, Norway and Liechtenstein. It was put in place to create competition among investors, regulate investment services, and protect the consumers involved. The directive was brought into the European Parliament and Council in 2004, but only replaced the Investment Services Directive (ISD) in 2007. Once introduced, the law brought investment services and activities under a single market in order to increase competitiveness, reduce prices, expand choices for investors, and increase efficiency. That being said, the MiFID is a very important aspect in the EU’s regulation of financial markets.
About IFSC Financial Regulator
The “International Financial Services Commission”, a Belizian regulatory body founded in 1999, is responsible for regulating all the brokerage firms, businesses, and organizations that are involved in financial markets and investment services. The IFSC is held accountable by the Ministry of Belize Securities and International Financial Services Commission Act. The IFSC also attempts to provide a user-friendly market environment for both Belizian and offshore investors by improving the financial markets and services of Belize on an international level, supervising the licensed Investment Services, Financial Advisors, Fund Management Companies, and Investment Schemes providers, granting licenses to the Investment firms and other monetary entities, and administering preventative and disciplinary measures to the IFSC authorized firms in case of financial misconducts.
About BaFin Financial Regulator
The BaFin regulator is a leading German organization that reports to the German government and controls the country’s financial markets. In addition, this institution actively cooperates with the Federal Bank of Germany in the process of professional activity. The financial regulator under consideration has been in operation since 2002. During this time, the organization has earned an impeccable reputation and enjoys great authority among traders. The license of this organization acts as a symbol of reliability and transparency of the brokerage company.
About ASIC Financial Regulator
The Forex Brokers, financial organizations, and investment firms in Australia are all regulated by the “Australian Securities and Investment Commission” (ASIC) which is a self-reliant governmental regulatory body established in 1998. The priority of the ASIC is to guarantee a healthy, transparent, and productive market environment as well as prevent any illegal financial activities. The ASIC strives to promote investors certainty towards the Australian Market by administrating the full strength of the law to the authorized firms. In 2009, the ASIC also assumed the “Australian Stock Exchange” as part of its responsibilities. The ASIC aims to eradicate fraudulent activities regarding the offered financial services by informing the public and updating its overall supervisory framework.
About FSCL Financial Regulator
New Zealand Financial Markets Regulator FSCL (Financial Services Partners Ltd) is owned by a non-profit company. It provides supervisory services regarding various brokerage offices and financial institutions. The regulatory body was founded in 2008 to resolve conflict situations arising between brokers and traders, spending little time and providing a fair verdict.
About FSC Financial Regulator
FSC has been operating since 2001, adhering to the international legal framework. The FSC regulator, namely the Mauritius Financial Services Commission, performs the function of controlling, overseeing and securing licensing documents for the non-bank financial services and global business segment. These may be insurance and pension funds, leasing and credit institutions, as well as brokerage companies.
About BVI FSC Financial Regulator
BVI FSC – British Virgin Islands Financial Services Commission. The financial regulator created in 2001 year is still under the full control of the state. Any investment company, broker, go through mandatory registration in the Commission and obtain BVI FSC license. Its primary goal – the fight against money laundering. The powers of the regulator is very extensive – in the area of control there are investment and insurance companies, banks, financial advisors.
About NFA Financial Regulator
When the United States Congress established the Commodities Futures Trading Commission in 1974, the same legislation allowed for the creation of registered futures associations. In 1982, the NFA began operations as a self-regulatory organization for the financial derivatives industry within the United States. Its main task is to monitor the legitimate actions of the financial sector of brokerage companies. The association acts as a guarantor, defending the rights of users who have been subject to fraud by brokerage companies.
Financial Commission (FinCom)
About Financial Commission Regulator
Most commercial enterprises that exercise the function of supervision over brokerage organizations resolve conflict situations between currency market participants. Most often, however, the end result outweighs that of brokers because they fund the institution. The Financial Commission, a regulator founded in 2013, acts as an impartial judge able to resolve claims under the law and provides additional protection for traders through its own compensation fund.
About CFTC Financial Regulator
Congress established the CFTC in the 1970s. From then on, this Commission is responsible for futures trading and investments. Under the same legislation, the establishment of certified futures associations was granted, which enabled the founding of the NFA as an independent association to oversee Forex trading and to direct brokers to register with CFTC and become members of the NFA. The CFTC and the NFA go hand in hand and are connected on many levels. They share the same aims and cooperate very closely. Thanks to the regulation and supervision of the CFTC, competitiveness remains at a proper level, as in principle does the rationality of market relations.
About EFSA Financial Regulator
The Egyptian financial regulator EFSA belongs to a public body carrying out a legal activity on the basis of its legal status in accordance with the law adopted in 2009. EFSA specializes mainly in monitoring and normalizing the quality of work of non-bank financial exchange sites and trading instruments, including the capital market, various other exchanges, all kinds of insurance services, mortgage lending, leasing, factoring and security specifics.
About VFSC Financial Regulator
The VFSC regulator is the leading organization that has controlled the financial markets of the small Pacific island of Vanuatu since 1993. The Financial Services Commission establishes very loyal requirements for obtaining a license, which attracts a huge number of brokerage companies, mainly start-ups or small ones.
About SIBA Financial Regulator
SIBA stands for Seychelles International Business Authority that is situated in Seychelles, a large group of islands off the African east coast. In the Seychelles, these rules were developed as part of the Financial Services Authority Act, 2013. SIBA is a relatively lesser-known regulatory agency that oversees regulatory protocols for all companies that wish to do business in Seychelles. SIBA is responsible for issuing trade licenses for offshore companies and is one of the recognized regulatory agencies in the African continent.
About FMA Financial Regulator
The Financial Markets Authority (FMA) is the regulatory authority for financial markets as well as its participants in New Zealand. During the 2006 to 2010 period, the Securities Commission Of New Zealand, which was the predecessor to the FMA, received a lot of criticism due to the failure of numerous financial companies and the subsequent loss of client funds. The Securities Commission of New Zealand was also unable to enforce strict regulations, which ultimately led to the breakdown of the New Zealand economy, played in part by the global financial crisis.
About FINMA Financial Regulator
The Swiss Financial Market Supervisory Authority, also known as FINMA, is a regulatory organization in Switzerland that licenses, regulates, and supervises all types of financial firms including banks, stock markets, insurance companies, brokers, and other financial market participants. The FINMA was formed in 2007 and is headquartered in Bern, Switzerland.
About Banque De France Financial Regulator
Banque De France is a bit different to some of the other regulatory agencies in the world, as Banque De France is actually the Central Bank of France, and therefore, a completely Government owned entity. It is also directly linked to the ECB, and is one of the most powerful central banks in the world. Banque De France was founded in 1800 during Napoleon’s rule, and has been instrumental in shaping up France’s economy over the centuries to make it one of the world’s largest economies.
About FINRA Financial Regulator
The U.S. Industry Financial Services Regulatory Service was established in 2007 to license all financial market participants who wish to operate in this segment and then control them. The organization is self-regulatory and not-for-profit, but is managed by the U.S. Securities and Markets Commission, the SEC. It is this body that determines the structure of FINRA and the objectives of the organization.
About FMRRC Financial Regulator
Anyone considering Forex trading in Russia should be prepared for a complicated and rocky ride. The current situation with regards regulation is still a little hazy. There are a number of “so-called” regulatory bodies which makes it very confusing for those of you looking for the right one. There has been a lot of discussion recently with regards regulating the Russian Forex industry and as of 2016, the only official regulator is the Central Bank of Russia. However, there are a number of other organizations who seem to consider themselves responsible for Forex trading and one of these is FMRRC.
About BAPPEBTI Financial Regulator
In Indonesia, regulation of Forex brokers falls in the lap of BAPPEBTI. The initials stand for Badan Pengawas Perdagangan Berjangka Komoditi which roughly translates to the Commodities and Futures Trading Regulatory Agency. The agency was launched in 2005 and is the only agency in Indonesia responsible for regulating various financial entities, including BAPPEBTI regulated brokers. It is supervised by the Ministry of Finance and managed by a board of administrators made up of industry experts who have been selected by the Indonesian government.
About IIROC Financial Regulator
The Investment Industry Regulatory organization of Canada is the major body that is charged with the responsibility of oversight and regulation of all activities related to investing and trading in Canada. This also includes regulation of companies that deal in activities related to debt and equity. IIROC is a self-regulated body and it came into existence in mid-2008 by the coming together of two key industry players; the Market Regulation Services Inc. (RS) and the Investment Dealers Association of Canada (IDA). IIROC mandate is defined by the Canadian Securities Administrators (CSA).
About CBI Financial Regulator
The Central Bank of Ireland was established in 1943 and has taken on plenty of responsibilities since then. In October of 2010, the CBI became the authority responsible for the regulation of financial services in Ireland. The regulation imposed by the CBI is in accordance with the MiFID derivatives, as well as the regulatory guidelines imposed by the European Union. With all this regulation, the CBI is mandated in providing investors with the most ethical and transparent marketplace in the European financial markets. All in all, the CBI is indeed a competent regulatory authority with the ability to maintain integrity in the financial markets while protecting consumers and the Irish financial economy.
About CONSOB Financial Regulator
The Italian Securities and Exchange Commission or The Commissione Nazionale per le Società e la Borsa (CONSOB) is a governmental regulatory body, established in 1974, responsible for regulating the Italian financial markets, investment firms, forex brokers, securities markets, and the stock exchange including Borsa Italiana. The CONSOB makes sure that market participants follow the regulations and the regulated firms are transparent in their financial activities. The organization runs regular investigations to detect insider dealing or other financial misconducts to keep the market integrity intact. The CONSOB also cooperates with The Bank of Italy, The Pension Fund Regulatory Authority, The Insurance Industry Regulatory Authority as well as other supervisory entities towards a safer and better market atmosphere.
About CNMV Financial Regulator
Forex Brokers in Spain are regulated by the “Comisión Nacional del Mercado de Valores” (CMNV) which translates into the “National Securities Market Commission”, a known supervisory entity founded in 1988 and held responsible by the “Ministry of Economy and Finance of Spain”. The priority of the CNMV is to ensure the safety of country’s economy by providing suitable trading conditions for both the investment service providers such as Forex brokerage firms and the investors. The CMNV is in charge of issuing, suspending or removing licenses of the registered firms in addition to administering other provisions and penalties if deemed necessary.The organization also attempts to prevent the CMNV regulated firms from unethical financial conducts and promote reasonable treatment towards clients.
About FSB (FSCA) Financial Regulator
South African companies are regulated by the “Financial Services Board” (FSB – FSCA) which is an independent financial regulatory entity in South Africa. The “FSB” regulates and oversees the financial activities of all the Investment Firms, Capital Markets, Insurers and Insurance Companies, Credit Agencies, Forex Brokerage Firms, Stock Exchange, as well as other relevant companies to ensure the safety of client’s funds and the integrity of the economy in the regions. The FSB is empowered to enforce preventative and disciplinary measures which include financial penalties, suspension, or annulment of the licenses if the registered companies step foot outside the framework of the laws. The FSB attempts to provide a trustworthy market atmosphere for both the providers and investors of the financial markets.
About JFSA Financial Regulator
Japan Financial Services Agency (JFSA) is an independent governmental supervisory body, founded in 2000, in charge of regulating the banks, securities and exchange markets, financial institutions, insurance companies, forex brokerage firms, and the overall financial system of Japan. The JFSA is held accountable by the Minister of Financial Services. The organization lays down the provisions so that the financial systems operate smoothly, the investors are well protected, and the financial service providers are kept in check for the development of the Japanese financial markets. The JFSA also investigates private sector financial institutions, oversees the certified public accountants and auditing companies, and monitors the consistency of the rules in the financial markets.
About FSA Financial Regulator
The Financial Supervisory Authority of Norway (Finanstilsynet – FSA) is a governmental regulatory entity in control of regulating and authorizing the forex brokers, financial services companies, banks, insurance firms, credit providers, securities and stock exchanges, real estate agencies, auditors, and pension fund regulations in Norway. The FSA, formally known as Finanstilsynet, was founded in 1986 as a result of unifying the Bank Inspection Agency, the Broker Control Agency, and the Norwegian Insurance Council. The FSA mainly aims to keep the Norwegian financial market secure for the protection of the investors’ funds. Moreover, the organization is to administer its rules and regulations to the regulated financial firms in accordance with the Norwegian Ministry of Finance and International Accounting Standards.
About AFM Financial Regulator
The AFM, short for Autoriteit Financielle Markten, was founded in 2002 as part of the legislation taking out Securities Board of the Netherlands and moving the responsibilities for all financial products to this agency. The AFM is fully independent administrative body under the political jurisdiction of the Ministry of Finance. The authority is thus drawn for the agency to become the policymaker, enforcer of the laws, and the market regulator in the Netherlands. The AFM regulated brokers thus have strict regulation and have obligations when receiving the authorization and license, which include financial reporting for trading volume and data on regular basis, as well as disclosures on any major changes. While the foreign companies are invited to do business, such brokers will have to establish Netherlands-based executive and fully functioning offices.
About KNF PFSA Financial Regulator
All the Polish Forex brokers are regulated by the “Komisja Nadzoru Finansowego” (KNF), also known as the “Polish Financial Supervision Authority” (PFSA), which is an independent regulatory agency founded in 2006. The activities of the KNF\PFSA are inspected by the “President of the Council of Ministers”. Its supervisory power extends to all the licensed Forex brokerage firms, credit institutions, insurance firms, investment advisors, pension scheme companies, and financial organizations. The KNF\PFSA monitors the Polish financial markets as well as the banking system on a regular basis to provide a trustworthy and safe financial structure for all the investors.
About FIN-FSA Financial Regulator
All the Finnish Forex Brokers are licensed and regulated by the Finanssivalvonta which translates into the Finnish Financial Supervisory Authority (FIN-FSA) – a governmental regulatory body established in 2009. The FIN-FSA monitors the financial activities of the Credit Institution, Insurance Companies, Forex Brokerage Firms, Banks, Helsinki Stock Exchange, and all the regulated companies in Finland. This authority also collaborates with the Bank of Finland and the European Central Bank to ensure that the domestic and international laws are enforced on the listed financial companies leading to a more secure, healthy, and stable Market atmosphere in all of Finland.