What are Forex Regulations?
Forex brokers usually start with regulation in only one country. It is usually not easy to get such a license, especially in countries with stricter regulations. New brokers usually start with regulation in a single country and then seek licensing in other countries where they wish to operate. It is usually easier for forex brokers to obtain some sort of regulatory approval even in countries where they are not physically located if they want to actively market their services there.
One of the most important criteria for traders when choosing a forex broker is the regulatory status of the broker and under which regulatory body the broker is regulated. Unregulated Forex / CFD brokers are risky places for traders to deposit funds, and traders who do so are likely to find that they have no effective remedy for losses caused by dishonesty or incompetence.
In the following list, we present the main regulatory bodies by country that are most relevant to Forex / CFD brokers and summarize the key points of applicable regulatory law.
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