Financial market regulators play a very important role on the international platform. They track and prevent crime, allowing bona fide traders to run their business successfully. The development of trading cannot be carried out without control, because brokers get the opportunity to change payments or working conditions. Large organizations are able to track the activities of resellers and prevent their fraud.
When choosing a broker, it is crucial to make sure that they are officially licensed and regulated by a reliable organization. Unlicensed intermediaries are most often scammers or provide low-quality services. Among other things, it is necessary to establish a financial regulator that checks the brokerage firm. There are a huge number of controllers in the world, among which you can find both reliable and dubious organizations.
Features of regulation on the Forex platform
A financial exchange is fraught with a lot of dangers, and the main one is insufficient control over participants. If we consider the international market globally, it is easy to note that there is no clear regulatory mechanism yet.
The market structure is a global network that accommodates several large-scale institutions and less influential credit and financial institutions. Among other things, there are numerous brokers, dealers and traders. At the same time, each participant is concerned about their profits, and some of them resort to illegal measures to increase capital. They deceive their clients by making incorrect or excessively long withdrawals, assuming hidden fees, or disappearing from sight after receiving funds.
In the absence of centralized control, each of the regions creates its own body that monitors the procedure for implementing laws on the exchange. Financial regulators are the security guarantees that a trader can receive. They help resolve legal disputes and prevent fraud on the part of intermediaries. If the player has doubts about the broker, he will have to collect evidence and provide it to the relevant government agency.
If a dealer works in Russia with a local intermediary, he should seek help from the regulator of the financial market of the Russian Federation. In the case of cooperation with a foreign partner, it makes sense to find out about the issuance of its license, then contact the relevant corporation in writing.
The most popular financial market regulators
On the Forex platform, you can find a lot of controllers who monitor the order in different countries. Some have a world reputation and are trusted not only in their native country, but also far beyond its borders.
The following financial market regulators are considered reliable and provide licenses only to the best brokers, including Alpari, FxPro, etc.:
- The NFA is one of the most influential government agencies in America. The structure was established in 1982, and since then it has been advocating for the protection of large or small investors. The institution monitors the activities of market participants and suppresses violations. It is based on the legislative framework of the United States and operates completely autonomously. To date, most professional traders listen to the opinion of this company.
- The CFTC was created in 1975 immediately after the decision was made to control futures exchanges. The U.S. government founded the corporation to optimize risks and reduce fraud. This institution opposes securities fraud and monitors local sales representatives.
- The FFMS is the regulator of the financial markets of Russia. The state structure supervises the participants of the local site in accordance with the legislation of the country. The financial regulator of the Russian Federation monitors the procedure for disclosing data and suppresses illegal manipulation or dissemination of corporate information.
- RAFMM is the financial regulator of Russia, aimed at preserving etiquette between local participants in exchange trading. The corporation strives to increase its turnover by issuing licenses and certificates.
- The central bank can also act as a market controller. The Central Bank, as a regulator of the financial market, has long been operating in the Russian Federation. The powers of this state body consist of supervision over trade turnover and control over participants. Increasing the level of security and improving the work of exchanges is the main goal of the Central Bank. The financial regulator is involved in many areas and provides assistance to all local traders.
- The FSA controls British intermediaries and is recognized as the most influential in the Eurozone. Its key task is to track the labor activity of the British economic sector and banks. Currency, stock and other exchanges are also under the supervision of this institution. It serves to ensure national security and protects all players from market fraud.
- CySEC is based in Cyprus and is recognized worldwide. The Securities and Exchange Commission has a huge influence not only on small traders, but also on large equity holders. It supervises brokerage firms and provides various services. The purpose of the corporation is to ensure investment reliability and attractiveness.
- Having gained knowledge about the main financial regulators, the trader will be able to choose the most worthy company for cooperation on the international platform. Before replenishing your account on the broker’s website, it is worth checking the number of the specified license with the data on the controller’s web resource. If the information differs or the code does not exist, it is better to choose another intermediary company.
