Fx Regulatory Bodies - Do Its Existence Actually Needed?

The financial markets are controlled by several different regulatory bodies

. These include overall regulatory bodies and those working for specific countries. Both the central bank and other regulatory authority are responsible for regulation of financial markets in most countries. The latter can be subsidiary of the Central bank or an independent body. Forex market being one of the financial sectors is not left out of this regulation. Similarly, there are different bodies that are designed to regulate Forex market. These bodies may vary significantly depending on the country. The primary role of the Forex regulatory body is to strengthen the regulation and monitoring of the Forex market within a given jurisdiction. The overall roles of these regulatory bodies are many as listed below:

1. Safety Of Traders

Forex traders need to be safeguarded and regulation is the best way out. Strict regulations required by the Forex regulatory bodies often ensure a sound level of protection to traders. In the financial market, traders are often exposed to greater risk level in cases where brokers are not regulated. The regulation ensure safeguard of their funds or the trading deposits. They ensure that the clients monies are not used inappropriately e.g. for operational purposes.

2. Protection against manipulative and fraudulent activities

There are so many uncertainties in the financial market that affect the dealing between the trader and the broker. It is wiser to regulate Forex brokers to ensure that these uncertainties are limited. The work of the Forex regulatory body is to ensure maximum protection of the trader against the brokers manipulative and fraudulent activities. This helps safeguard your funds.

3. Safeguard Of Traders Interests

The interests of the Forex trader must be protected. There comes a situation when the Forex broker is not protecting the interest of its clients. This is when Forex regulatory body becomes very helpful. It is the role of the regulatory body to enforce regulations that makes your broker to stick to the work ethics, be open and lay down they polices well. Irrespective of their countries of origin, all regulatory bodies ensures that the interest of the investor is protected at all times.

4. Integrity Of Forex Trading

The Forex regulatory bodies enforce integrity to be maintained in the Forex trading market at all times. They enforce the Forex broker and the trader to maintain integrity. There are several rules that are subjected to the Forex brokers by the regulatory body designed to help maintain integrity in the Forex market. This creates conducive trading environment and outstanding relationship between the trader and the broker.

5. Protection Against Scammers

It is no secret, there are several scammers using the internet to con your monies. And given the setting of the Forex trading market, it can prove harder to physically meet your broker especially if you are not from the same country. The role of the Forex regulatory body is to fish out these scammers thereby safeguarding your investments.

Conclusion

In the world of Forex market, money changes hands frequently and in big sums. To provide some level of protection and control, there must be a form of regulation applied to the parties involved. Strict regulations ensure that things dont get out of hands. Forex trading significantly requires strict regulations just like in any financial market.

There is no common standard of regulatory body for Forex. Every country has its own independent body that regulate the Forex market. This regulation is primarily provided by the government of hat country. It is important to note that not all Forex brokers are regulated despite this call to protect the interest of every investor. It is wise to first check the regulation status if the Forex brokerage before you commit yourself.

by: Ownen Moore

POST COMMENT

Can I Cure Buzzing In Ears? Vummidi Silverware All You Might Want To Know About Body Piercing A Water Softener Will Change Your Life Contained In The Increase Process Of Lid Versailles, From Hunting Lodge To Opulent Palace What Should Be The Right Price To Sell My Car How To Sell My Phone For Cash Nikon Coolpix S8000 User Report Get The Guy You Want Get The Guy You Want To Ask You Out Get The Guy You Want To Give You His Phone Number Get The Guy You Want To Notice You