The foreign exchange market (Forex or FX) is a global decentralized market for the trading of currencies giving traders the ability to buy, sell, exchange and speculate on currencies from Monday (10.00 pm GMT) thru Friday (10.00 pm GMT), 24 hours a day. However, the Forex market is one of the least regulated markets in the world.
Best Regulated Brokers 2017
The most important thing you should look for when picking up a broker is if they are regulated or not.
A regulation licence gives the trader the possibility of filing a complaint directly to the regulation authority in case of any conflict with a broker. Then, they will contact the broker and put pressure on them if they acted against the regulation rules.
You must understand that getting a licence is not that easy for a broker, and this is a mark of reliability so they won’t take the risk to lose it.
Each Forex regulator operates within its own jurisdiction and regulation and enforcement varies significantly from country to country.
Inside the European Union, a license from one member state covers the whole European countries. There are a lot of regulators, but the most reliable are :
- CySEC – Cyprus Securities and Exchange Commission (Recommended CySEC regulated broker : XM)
- ASIC – Australian Securities and Investments Commission (Recommended ASIC regulated broker : AvaTrade)
- FCA – United Kingdom’s Financial Conduct Authority (Recommended FCA regulated broker : eToro)