Regulated brokers

In modern society, any economic activity is under the control of the state. This is done in order to ensure compliance with the rule of law and to streamline the work of private companies and individual citizens, bringing their personal interests into line with the interests of society. Participants in financial markets (banks, stock exchanges, brokerage companies, investor funds and private traders) are no exception to the General principles of state regulation of the economy. This page shows the rating of regulated Forex brokers. For a Forex broker, it is necessary to have a license of the country in which this broker is registered.

Regulation of the activities of American brokers is carried out by:

• Securities and exchange control Commission SEC;
• Federal regulatory service for financial services FINRA;
• National futures Association NFA;
• Service for monitoring the investments in securities SIPC;
• The Federal organization of insurance of deposits the FDIC.

The history of the emergence of regulation in Forex brokers

The United Kingdom and the European Community also have a fairly strict system of control over financial markets. The differences are due to the history of their appearance and the subtleties of national legislation. The first, in 1934, introduced supervision of financial markets in the United States, creating The Commission for the control of exchanges. For a long time, the United Kingdom did not consider it necessary to organize such structures, but with the introduction of the financial services Act in 1988, the question arose about the need to create the financial Services authority (FSA), which is now one of the most stringent regulators in the world. In 2007 ina single system of standards for activities in the financial markets of the European Union has emerged and the markets in Financial Instruments Directive (MiFID) has been adopted. Offshore zones also have their own regulatory system, which is much more lenient than in the United States or Europe.

As a rule, brokerage companies try to have licenses of not one, but several state organizations (at the place of registration and in the territory of providing services), as this indicates their reliability. In addition, they are willing to Finance independent associations that have authority in the market, and receive certificates from them.

Best regulated Forex broker

Choosing the" right " broker, you should definitely check the availability of certificates and licenses not only on its own website – such information must be present at the regulator. There can be no special requirements for the number of these documents, but it is best to follow a simple rule: at least one, but more is better.