About Broker Regulation

Forex RegulationThe question of Forex Broker Regulation is really important today because there exist hundreds of various companies on the world brokerage market. Moreover, new brokers and dealing centers, individual and corporate, regulated and relatively unregulated appear every day. Thus, many of them offer really lucrative trading conditions for traders and investors as that is the major approach to establish and survive on the severe fields of modern brokerage market for newcomers.

That’s why Broker Regulation, provided by various world-known regulation authorities should be taken into account while choosing a proper broker partner for trading on the financial markets. Every broker no matter if it is corporate and famous or new is usually regulated by one or more broker regulation authorities. That means it is acting as a member of some regulating organization that in its turn assigns every member broker its unique license number. The more regulating licenses your considered broker obtains the better it will look in its corporation portfolio.

Broker Regulation in different countries

Everybody understands that being regulated by some authority is essential for most brokers as they are required to run their business under definite guidelines. In some countries brokerage regulation is more stringent than in other off shore or Third World countries. Countries listed below should be considered as the preferred countries for choosing an appropriate broker regulated by authorities established in these countries.

The list of Preferred Countries:

  • United Kingdom
  • USA
  • Switzerland
  • Canada
  • Australia

Broker Regulation organizations established in these countries receives a significant priority among the others and trading with Forex brokers regulated by reputable authorities from such countries are vigilantly monitored.

Broker Regulation Organizations

The following list of broker regulation organizations is not thorough but contains the most significant and familiar authorities you should get acquainted with.

Regulatory Authority

Country of Origin

Financial Services Authority (FSA)


National Futures Association  (NFA)


Commodities and Futures Trading Commission (CFTC)

Securities and Exchanges Commission (SEC)

Financial Industry Regulatory Authority (FINRA)

Association Romande Des Intermediaires Financiers (ARIF)


Swiss Federal Department of Finance (SFDF)

Australian Securities and Investment Commission (ASIC)


Ontario Securities Commission (OSC)


Bundesbank and German Federal Financial Supervisory Authority (BaFin)


Cyprus Securities and Exchange Commission (CySEC)


To make a brief conclusion we will admit that membership with one or more of the above mentioned authorities should be considered as an advantage of the examined broker. Always request all the possible regulatory data from the brokerage firm you are looking to deal with before opening an account.

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