subject: Who Regulates A Forex Broker? [print this page] Who Regulates A Forex Broker? Who Regulates A Forex Broker?
If you are new to the forex trading business, you need to be very careful about the early decisions. One of the most important decisions that will influence your business in future as well is selecting the right person for your brokerage needs. You will find plenty of useful information on the internet about these professionals. You will be ecstatic to know that every one offers better set of features than the others. Your excitement will go high when you will find that these professionals are there to help you and that they are actually putting in every effort to bring more money to you. However, there are things that will you back. The most important of them is lack of regulatory authorities for these professionals. Unfortunately, there are no central regulatory authorities. Different authorities operate within different countries.
The market is global but not the authorities. This is a very harsh fact to accept. However, the national and local authorities are there and they do their best to regulate the affairs efficiently. This means that you should select the service provider from within your own country so that you can get in touch with the regulatory authorities. You will also be in a better position to understand your local laws and hence will know the laws regulating these service providers.
Whenever you are selecting a forex broker, you need to check his profile with these regulatory authorities. If the authorities have regulated that professional service provider for brokerage services, then you can do business with him without fearing the fraud and misrepresentation. However, if the service provider is not regulated by these authorities, you should avoid doing any business with that service provider. He will not be responsible to any regulatory authorities and will be at freedom to scam you.
