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    How is Forex Market Regulated?

    Abstract:The forex market is the largest and most liquid market that remains open 24 hours a day and five days a week. With a daily turnover of over $8 trillion, the forex market requires oversight from regulatory bodies across the world to keep the market functioning in a transparent manner. Regulatory supervision strengthens the trust and confidence of traders in the forex system, allowing more traders to join the forex market and facilitating trade worldwide. In this article, we will discuss how the forex market is regulated at such a large scale.
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      The forex market is the largest and most liquid market that remains open 24 hours a day and five days a week. With a daily turnover of over $8 trillion, the forex market requires oversight from regulatory bodies across the world to keep the market functioning in a transparent manner. Regulatory supervision strengthens the trust and confidence of traders in the forex system, allowing more traders to join the forex market and facilitating trade worldwide. In this article, we will discuss how the forex market is regulated at such a large scale.

    Regulatory bodies

      The foreign exchange market is comparatively less regulated than stock or commodity exchange markets due to its decentralized nature, which makes it vulnerable to fraud. However, to safeguard the interests of traders and facilitate trading activities, governments all over the world regulate forex brokers through regulatory bodies. The supervisory bodies act as watchdogs and issue licenses to the forex brokers that comply with the local rules and regulations. Some famous regulatory bodies that oversee the operations of forex brokers in their respective countries are:

      1- Financial Conduct Authority (United Kingdom)

      2- National Futures Association & Commodity Futures Trading Commission (United States)

      3- Australian Securities and Investments Commission (Australia)

      4- Autorité des marchés financiers (France)

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    Regulatory Requirements

      Regulated forex brokers have to fulfill the following main regulatory requirements:

      1- Regulated forex brokers should not combine the funds of their clients with the funds meant to run the operations of the company. In other words, the broker has to segregate the clients and its own funds by maintaining separate bank accounts.

      2- Regulated brokers must disclose the risks associated with forex trading and must refrain from making false promises about generating guaranteed or high returns.

      3- Regulated brokers have to maintain minimum capital requirements determined by the local regulatory bodies to ensure that the broker remains solvent and can handle the deposits of their clients.

      4- Regulated brokers are frequently audited to detect and prevent any financial irregularity that can inflict financial loss to traders. The brokers have to meet capital adequacy requirements and ensure compliance by submitting the statements periodically to the regulators.

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    How can you discover regulated brokers?

      Not all brokers are regulated and licensed. To keep yourself safe from forex fraud, you must open your trading account with a regulated and licensed broker only. While you can browse the websites of brokers individually and verify the details on the regulator's website, you can find a list of regulated brokers on Wikifx.com.

      Wikifx.com covers a mammoth list of 5,000 brokers across 30 countries, making it easier for you to filter the regulated brokers according to your defined criteria. You can find license numbers, regulatory information, risk appraisal, and up-to-date rankings of forex brokers. The details of the brokers can be viewed on Wikifx.com as well as on the mobile app.

    United Arab Emirates Dirham

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand
    Current Rate  :
    --
    Amount
    United Arab Emirates Dirham
    Available
    -- United States Dollar
    Risk Warning

    The Database of WikiFX comes from the official regulatory authorities , such as the FCA, ASIC, etc. The published content is also based on fairness, objectivity and fact. WikiFX doesn't ask for PR fees, advertising fees, ranking fees, data cleaning fees and other illogical fees. WikiFX will do its utmost to maintain the consistency and synchronization of database with authoritative data sources such as regulatory authorities, but does not guarantee the data to be up to date consistently.

    Given the complexity of forex industry, some brokers are issued legal licenses by cheating regulation institutes. If the data published by WikiFX are not in accordance with the fact, please click 'Complaints 'and 'Correction' to inform us. We will check immediately and release the results.

    Foreign exchange, precious metals and over-the-counter (OTC) contracts are leveraged products, which have high risks and may lead to losses of your investment principal. Please invest rationally.

    Special Note, the content of the Wikifx site is for information purposes only and should not be construed as investment advice. The Forex broker is chosen by the client. The client understands and takes into account all risks arising with Forex trading is not relevant with WikiFX, the client should bear full responsibility for their consequences.