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.com
- Forex club
- FXDD
- Ikon Group
CFTC (Commodity Futures Trading Committee)
- FXCM
- OANDA
- GFT
Great Britain. FSA (The Financial Services Authority)
- FOREX.com
- FIBO Group
- Saxo Bank
- FXCM
- OANDA
- GFT
Cyprus Securities and Exchange Commission
- Admiral Markets
- FOREXYARD
- 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
- BNP PARIBAS PRIME BROKERAGE INC
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
In today’s fast-paced financial world, responsible trading is no longer a choice; it's a necessity. Technology has opened the markets to everyone, making access incredibly easy.
For active traders and investors, mastering the art of trading volatility is a crucial skill. Volatility, in financial terms, refers to the extent to which asset prices fluctuate over time. High volatility markets experience rapid price swings...
The global financial market operates as a dynamic ecosystem, where understanding the connections between different market movements can provide invaluable insights for forecasting...
The forex market, also known as the foreign exchange market, stands as the largest and most traded financial market globally. FXTM is committed to equipping our clients...
Cryptocurrency trading has rapidly grown into a bustling and dynamic market that attracts traders from around the world. With the potential for significant profits...