The Forex market is a pretty large market, with trillions in trading volume every day. Although most Forex trades are done online, it’s always important to have some kind of safeguarding and protection for the traders who will never meet the recipients of their funds. Regulatory authorities make sure that Forex brokers are honest, transparent, and protect the interests of users.
Some major regulators in the foreign exchange market include ASIC in Australia, FCA in the UK, and CySEC in Cyprus. If a Forex broker is regulated by any of these leading regulators, you can rest assured that your privacy and funds are respected. These regulatory bodies offer a compensations scheme that protects investor deposits.
The brokers listed here represent the top regulated brokers:
The XTB is licensed and regulated by 5 leading regulators and all its users have an investment insurance cover.
Here is a list of these regulations:
- XTB UK is authorized by the FCA (Financial Conduct Authority) under license number 522157
- XTB Europe is authorized by the CySEC
- XTB International is authorized by the Belize International Financial Services Commission
- XTB DA SA is regulated by the Polish Securities & Exchange Commission.
- X Trade Brokers Spain is authorized by the Comision Nacional del Mercado de Valores.
IC Market gets regulatory oversight from the Seychelles Financial Services Authority (SFSA) and the Australian Securities & Investments Commission (ASIC). These are the regulatory bodies that oversee its transparency on banking, insurance, and auditing.
Founded back in 2012, BDSwiss is owned and managed by BDSwiss Holding Ltd. BDSwiss is licensed and regulated by the Mauritius Financial Services Authority (FSC), Financial Services Authority (FSA), and the Cyprus Securities and Exchange Commission (CySEC).
The Swissquote Bank is a licensed and regulated company. It holds an operational license by the Financial Market Supervisory Authority (FINMA).
Swissquote segregates client funds to make sure they are insulated from broker-associated financial activities. This offers an extra layer of security to all traders.
Traders also enjoy additional security measures. The measures include Mobile Level 3 authentication process and a secondary login.
FxPro is definitely one of the most extensively regulated CFDs and Forex brokers in the industry. The Forex broker strives to provide clients with the most secure trading environment. As a result, the entity has subjected itself to regulation by various regulatory bodies around the world.
FxPro is owned and managed by FxPro Group Limited. The brand is owned and run by different subsidiaries in the group, including:
- FxPro Global Markets limited
- FxPro Global Markets MENA Ltd
- FxPro UK ltd
- FxPro Financial Services Limited
Plus500 is regulated by different authorities around the world. These bodies impose strict rules to make sure that trader funds are well protected. The regulation includes MAS, CySEC, ASIC, and FCA.
- In Cyprus, Plus500 is regulated by the CySEC (Cyprus Securities and Exchange Commission)
- In the united kingdom, Plus500 is regulated by the FCA (Financial Conducts Authority (
- In Australia, Plus500 is regulated by the Australian Securities and Investments Commission (ASIC)
- In Singapore, Plus500 is licensed and regulated by the MAS (Monetary Authority of Singapore)
What Is Forex Regulation?
The Forex market or the foreign exchange market is a good example of how a free market works. The market turns over trillions of dollars every day. Nevertheless, despite a large amount of money, it’s an Over Counter (OTC) market and isn’t regulated. Essentially, Forex trading is decentralized and there’s no central exchange, which is specifically geared towards dealing with Forex transactions. With the unregulated and decentralized nature of Forex trading, trading on an institutional basis doesn’t pose any problems because the involved parties fully trust each other.
Nevertheless, with Forex trading becoming easily accessible and more popular amongst retail traders, Forex markets have started becoming prone to fraud and scams. To prevent such fraudulent activities in FX markets, many countries have now started to regulate FX trading activities by requiring FX brokers to be regulated by reputed regulatory bodies such as the U.S’s National Futures Association and the Financial Conduct Authority in the UK. In their respective jurisdictions, the regulatory bodies work to ensure all Forex brokers operating within their jurisdictions adhere to the set rules.