Forex Brokers Licenses and Forex Regulation

Broker licenses are one of the key assessment criteria when choosing a forex broker. The licenses show which of the market regulators control the company’s quality of performance. What information can a trader derive from this knowledge?

E.g., the license of the American futures market regulator NFA is one thing, while the license of Antigua or Mauritius is another.

There is a great amount of regulators in the world issuing broker licenses, and with striking and essential differences between them. Therefore, a trader should know that licenses issued by different regulators are not equal value and significance. E.g., the license of the American futures market regulator NFA is one thing, while the license of Antigua or Mauritius is another.

That’s why different broker licenses are rated differently in the forex broker rating. The most authoritative broker licenses have 100 points; the licenses of state bodies regulating the market have 50 points; non-state self-appointed market regulators with no influence on forex brokers have 10 points.

A broker’s license is a necessary but not a single argument for opting for a certain broker and opening a real money account with this company.

We would like to warn novice forex traders against thinking that a broker’s license is a cure-all and that you won’t face any problems while staying with this broker. When making a choice of a broker be sure to consider the whole complex of the forex broker rating criteria, – this is the way the professional traders act.

The most authoritative licenses for the brokerage companies on the global level are:

NFA (National Futures Association)

  •     Forex club
  •     FXDD
  •     Ikon Group

CFTC (Commodity Futures Trading Committee)

  •     FXCM
  •     OANDA
  •     GFT

Great Britain. FSA (The Financial Services Authority)

  •     FIBO Group
  •     Saxo Bank
  •     FXCM
  •     OANDA
  •     GFT

Cyprus Securities and Exchange Commission

  •     Admiral Markets
  •     FxPro
  •     LQD Markets

FINMA (Swiss Financial Markets Authority)

  •     MIG Bank
  •     Crown Forex
  •     Dukascopy Bank SA

BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht)

  •     Alpari
  •     FXCM

SEC (The United States Securities and Exchange Commission), FINRA (Financial Industry Regulatory Authority)

  •     Swissquote
  •     Dukascopy Bank SA

SIPC (securities Investor Protection Corporation)

  •     Boston Merchant Financial

FinTRAC (Financial Transactions and Reports Analysis Centre of Canada)

  •     FX Clearing

MiFID (The Markets in Financial Instruments Directive)

  •     Admiral Markets
  •     Saxo Bank
  •     FxPro
  •     X-Trade Brokers DM S.A.
  •     Windsor Brokers

FSCL (Financial Services Complaints Ltd.)

  •     RoboForex

FSC Mauritius (Financial Services Commission Mauritius)

  •     YouTradeFX
  •     FXopen
  •     NordFX
  •     Forex4you

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