Forex Regulations eToro Regulations Forex Scam eToro Scam

Forex Regulation

Your official guide to online Forex regulations

The world of Forex trading is a world where a lot of money changes hands, which makes sense seeing as it is a market of currency trading. To make sure that things don't get out of hand, the Forex market has a lot of very strict regulations and policies that keep traders and financial bodies in check. These Forex regulations are maintained and monitored by various official international bodies whose job it is to make sure that FX providers stick to them in anything they do.

However, seeing as the internet is a vast informational space that is difficult to monitor and control, there will always be Forex brokers and service providers who disregard these regulations and get away with dealing in way contrary to the official policies of the regulatory bodies.

The following is a guide you can refer to when checking up on a Forex broker or service provider and make sure they are indeed following official Forex regulations.

The People in Charge of Forex Regulation

The NFA – the National Futures Association

The NFA is a self-regulatory organization for the US futures industry. Its purpose is to safeguard market integrity and protect investors by implementing Forex regulations. Membership in NFA is mandatory for any futures or FX broker operating in the US. It is an independent regulatory body with no ties to any specific marketplace.

The CFTC – the Commodity Futures Trading Committee

Created by congress, the Commodity Futures Trading Commission (CFTC) was formed in 1974 as an independent agency with the mandate to issue Forex regulations for financial markets in the United States. The CFTC's regulations assure the economic utility of the markets by encouraging their competitiveness and efficiency, and protecting market participants against and abusive Forex trading practices.

The FSA - The Financial Services Authority

This is a UK based independent body given statutory powers by the Financial Services and Markets Act 2000. The FSA regulates the financial services industry in the UK, which is made possible by the FSA's regulation making, investigatory and enforcement powers. The FSA is obliged to have regard to the Principles of Good Regulation.

Various National Authorities

Each country has its own national body for regulating its financial service industry. These are the bodies that decide on Forex regulations; you must therefore make sure that your broker is licensed in the country from which they operate. This ensures that they are obliged to operate in accordance to that country's trading regulations.

Forex Regulations for Forex service providers

Please keep these regulations in mind when choosing your broker/ dealer/ service provider.

We invite you to have a look at the regulation of eToro - our sponsor, for a fitting example.