The key issue to take notice of when choosing a forex broker is license or licenses that this company obtains. A license is a document indicating which forex regulators control the broker’s activities and generally the way the business is done.
Generally, onshore regulators, like NFA (regulator of the American futures market) abide by more tight legislation than their offshore colleagues, e.g. regulators based in BVI or Seychelles.
Broker licenses can be issued by various regulation authorities throughout the world; it is critically important for a new broker entering the market what are the differences between different regulators. In fact, not all the licenses are equally recognized and valued. Generally, onshore regulators, like NFA (regulator of the American futures market) abide by more tight legislation than their offshore colleagues, e.g. regulators based in BVI or Seychelles.
The most authoritative forex brokers regulators are:
NFA (National Futures Association)
CFTC (Commodity Futures Trading Committee)
Great Britain. FSA (The Financial Services Authority)
CySEC (Cyprus Securities and Exchange Commission)
FINMA (Swiss Financial Markets Authority)
BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht)
SEC (The United States Securities and Exchange Commission), FINRA (Financial Industry Regulatory Authority)
SIPC (securities Investor Protection Corporation)
FinTRAC (Financial Transactions and Reports Analysis Centre of Canada)
MiFID (The Markets in Financial Instruments Directive)
FSCL (Financial Services Complaints Ltd.)
FSC Mauritius (Financial Services Commission Mauritius)
