The regulator is an institution that maintains the law and order compliance of future industries and markets players.

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In the previous topic, we discuss the best regulatory agencies in the United State. Now, we will talk about other regulatory agencies in the world. The regulator is an institution that maintains the law and order compliance of future industries and markets players.

Top 5 Regulatory Agencies in Forex Trading

Every country has its own regulation, for instance, in the United State, there are two major regulatory agencies, CFTC and NFA. Now, here are several countries and their regulations you should know. Check this out!

 

1. United Kingdom: FCA and PRA

If you live in the U.K, you will find the two major regulatory agencies, it is the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).

On April 1, 2013, both of these agencies replaced the Financial Services Authority (FSA) as the financial industry’s regulatory bodies in the UK. These two agencies' goals are to protect consumers, ensure industry stability, and promote healthy competition in the financial services industry through the regulation of financial advisers, asset managers, or any firm not covered by the PRA.

If you are a forex trader or investor and looking for a good brokerage in the UK. The license from these two agencies can relate to the quality of the brokerages itself.

See also: Top Forex Brokers in UK

 

2. Denmark: Finanstilsynet (DFSA)

The Danish Financial Supervisory Authority (DFSA) or in danish name called Finanstilsynet, is the financial regulatory authority of the Danish government responsible for the regulation of financial markets in Denmark.

The Danish FSA was formed in January 1988 and was charged with supervising financial activities in Denmark. Members of the FSA are monitored in an attempt to protect investors and prevent market abuse.

This agency is responsible for the regulation of financial participants in Denmark. These include; banks, stock exchanges, securities, and money market brokers, clearing and registration organizations, insurance companies, pension funds, insurance brokers, investment companies, and investment associations.

The main role of this agency is to: strengthen the market's role as a disciplinary factor through enhanced transparency, protect consumers, ensure industry stability, and promote healthy competition in the financial services industry.

If you live in Denmark as a trader or investor and want to make business with your money, follow the guidance from this agency is the safest way. The company which has licensed by this agency means the firm already met the requirement.

 

3. Switzerland: Swiss Federal Department of Finance (FDF)

Federal Department Of Finance (FDF) is one of the seven departments of the Swiss federal government. This agency was formed in 1848 and collaborate with other departments in swiss regulates the banks, securities dealers, and stock exchanges.

That's why if you are a trader or investor and live in Switzerland. The safest way to spend money on financial business is foreseeing a firm which has licensed by the Swiss Federal Department of Finance (FDF).

 

4. Australia: Australian Securities and Investments Commission (ASIC)

The Australian Securities and Investments Commission (ASIC) is one of the best regulators in the world from Australia. This agency founded in 1991 roles as a corporate regulator in Australia. Shortly, ASIC regulates companies, financial markets, and financial service organizations as well as insurance, and credit.

Several popular forex brokerages that have ASIC's license are IC Markets, Paperstone, Axitrader, FXopen, etc. If you are an Australian trader who is looking for a worthy broker or futures company. The first thing you should do is checking the regulation, if the firm has ASIC's license it means the brokerage is safe.

 

5.Hong Kong: Securities and Futures Commission (SFC)

Established in 1989, the Securities and Futures Commission (SFC) is an independent statutory body set up to regulate the securities and futures markets in Hong Kong. The SFC is one of four regulatory organizations in Hong Kong and as one of the major financial centers in the world.

The roles of this agency are monitoring all futures and securities-related activities in Hong Kong, including setting and enforcing market regulations, licensing and supervising market participants such as brokers, investment advisers, and fund managers, authorizing offering documents of investment products to be offered to the public, etc.

Shortly, before you spent your money on financial investment or trading forex, the first thing you have to do is crosscheck the license or the regulator. The license indicates that the broker is not a scam, and the regulator to protect your funds.