Traders will have to meet the necessary trading requirements, and also make sure that their forex broker is regulated. A regulated forex broker is an associate of a legitimate financial authority. When a broker is regulated, their corporate practices are carefully examined and monitored to ensure that they follow the rules and procedures imposed by the regulators. Some of the rules given by the regulators differ from each other.
When you want to find out whether a forex broker is regulated or not, the first step is to find out the country in which the broker is located. Finding out the location of the forex broker can usually be found in the broker’s website. After finding out the location of the broker, check if the broker is regulated with the regulators in the country the broker is located. Please make sure, it’s important you don’t mistake “Licensed” for being registered with the regulatory body.
So what are those regulatory authorities? Let’s list some of them here:
Australian Securities and Investments Commission (ASIC)
National Futures Association (NFA)
Canadian Investor Protection Fund (CIPF)
Swiss federal Department of Finance (FDF)
Escalade Incorporated (ESCA)
Financial conduct Authority - UK (FCA)
Cyprus Securities and Exchange Commission (CySEC)
German Federal Labour Market Authority (BaFin)
International Financial Services Centre (IFSC)
The Financial Futures Association of Japan
Why You Should Choose a Regulated Forex Broker?
A regulated broker in Kuwait will ensure credibility, because the broker is required to provide financial reports to the regulators .When you do business with a regulated broker, you can remove any doubts or possibility of getting scammed or encountering any other underhanded transactions
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