Forex broker regulatory body fm other rules, brokers forex broker regulatory body uk required to warn traders about the risks involved in opening a trading account. Regulators can also limit the leverage that is allowed and require brokers to separate client funds in segregated accounts. The protection and the solutions that are offered to traders in the event of a dispute vary between countries and regulators.
Forex is an unregulated OTC market, the regulatory authorities therefore allow traders to have legal recourse in the event of a dispute with a broker. It is also necessary that you be able to distinguish between a licensed broker and a broker that is regulated by an agency. A licensed broker has obtained authorization to offer its services in a country, while the regulated broker must submit to the rules established by the regulator. Its purpose is to protect investors and to ensure the proper functioning of financial instrument markets.
The MiFID is a European Union directive that was established in Cyprus on November 1, 2007. The directive’s main objectives are to increase both competition as well as consumer protection in terms of investment services. In particular, the ESMA fosters convergence between securities regulators and the financial industry by working with other European surveillance authorities. The FSA is an independent non-governmental body that regulates the financial services industry in the UK. EEA country if they have permission that entitles them to do so. These companies must be regulated in their home countries and they must uphold strict standards that have been adopted in the EEA.
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