Facebook Twitter Instagram
    Facebook Twitter Instagram
    Forex PartnerForex Partner
    Subscribe
    • Home
    • Broker Reviews
    • Education
    • Forex Webinar
    • Forex eBook
    Forex PartnerForex Partner
    Home » Who Regulates Forex Trading?
    Education

    Who Regulates Forex Trading?

    PelleBy Pelle17th March 2022No Comments3 Mins Read
    Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit WhatsApp Email
    Forex Trading
    Share
    Facebook Twitter LinkedIn Pinterest Email

    The currency trading is not regulated by a single person or an institutional body. The trade regulators in currency exchange are various factors and characteristics. These factors or characteristics are the driving force behind the foreign exchange.

    The CFTC (Commodity Futures Trading Commission) has some authority over exchange foreign markets. The Commodity Exchange Act allows the selling of OTC forex futures and options to merchandise customers if, and only if, the counterparty (the person on the other side of the transaction) is a organized/standardized entity.
    The regulated entities have following:

    • financial institutions, such as banks and savings associations,
    • registered broker-dealers and certain of their affiliates,
    • registered futures commission merchants (FCMs) and certain of their affiliates,
    • certain insurance companies and their regulated affiliates
    • financial holding companies, and
    • Investment bank holding companies.

    The central banks being the trade regulators in currency exchange include banks like Federal Reserve Board (FED) which is the central bank of United States, European Central Bank (ECB) that conducts operations in foreign exchange and look after the smooth operation of payment systems, Reserve Bank Of Australia, Reserve Bank of New Zealand etc.

    Commodity Futures Trading Commission:
    In 1974 United States while keeping in mind to regulate commodity future and option markets created an independent agency named CFTC.

    The Committee of European Securities Regulators:
    European Commission Decision of June 2001 created CESR. It is an independent Committee that brought together senior representatives from national public authorities competent for purpose of securities. An Annual Report is submitted by CESR to the Commission of Europe, and to the European Parliament and the Council.

    The other international bodies included that work or operate as currency exchange regulating factors are as follows:
    • Ministry of Finance (MOF)
    • Financial Supervisory Agency (FSA)
    • Financial Services Authority (FSA)
    • Bank of International Settlements (BIS)
    • International Monetary Fund (IMF)
    • The World Bank (WB)
    • World Economic Forum (WEF)
    • International Finance Corporation (IFC)
    • International Energy Agency (IEA)

    NFA has designed some rules in order to provide security to customers in the retail currency exchange forex market. There are firms which are not required to be regulated entities, introduce customers and the market dealers. NFA’s rules states that, a foreign exchange dealer FCM should be ready to take responsibility for the unregulated entity activities that inquire retail dealers or clients. Additionally, NFA’s rules require dealer FCMs to:

    • Keep in consideration the high standards of commercial honor and just and justified principles of trade in relation to the retail forex business;
    • Look after their employees and agents and any links that act as counterparties to retail forex transactions;
    •based on the value of customer positions; a minimum net capital must be maintained that can be required in future.
    • Security deposits must be collected from the customers. NFA’s rules for foreign exchange do not apply to all FCMs and its affiliates,
    • It is feasible to confirm from the dealer if its forex activities are regulated by NFA.

    Some of the factors regulating foreign currency trading are factors like economic factors that include issues like government fiscal policies, monetary policies, interest rates etc. Political conditions are also one of the causes that make currency exchange rates susceptible. Market psychology and trader viewpoint also influence the foreign exchange market in a number of ways.

    beginner
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
    Previous ArticleTop Ten Traded Currencies of the World
    Avatar for Pelle
    Pelle

    Related Posts

    Education

    Top Ten Traded Currencies of the World

    3rd March 20227 Mins Read
    Education

    The Forex Three-Session System

    28th February 20224 Mins Read
    Education

    When is the Best Time of Day to Trade Forex?

    23rd February 20222 Mins Read
    Add A Comment

    Leave A Reply Cancel Reply

    Time limit is exhausted. Please reload CAPTCHA.

    Lists
    New Brokers
    Popular Brokers
    Best MT4 Brokers
    Best MT5 Brokers
    ECN Brokers
    STP Brokers
    Brokers with Licenses
    Best Brokers For New Traders
    Best Brokers For Intermediate Traders
    Best Brokers For Experienced Traders
    Brokers with Free Trading Signals
    Brokers with Free VPS Services
    Brokers with Free Online Courses
    Brokers with Free Market Analysis
    Brokers with Free Trading Tools
    Brokers with Copy Trading Tools
    Brokers with VIP Accounts
    Brokers with Cent Accounts
    Brokers with Micro Accounts
    Brokers with Low Minimum Deposits
    Brokers with Low Spreads
    Brokers with Zero Spreads
    Brokers with Zero Commission Trading
    Brokers with Welcome Bonuses
    Brokers with No Deposit Bonuses
    Brokers with High Leverage
    Brokers with Paypal
    Brokers with Skrill
    Brokers with Neteller
    Brokers with Free Deposits
    Brokers with Fast Withdrawals
    Brokers with Bitcoin Deposits
    Best Brokers for Crypto Trading
    About

    Our goal is to always provide the most educational content to help evolve traders around the globe.
    Together with education we promote a carefully selected group of brokers, who we feel have the trader in mind, at all times.

     

    Recent Posts
    • Who Regulates Forex Trading? 17th March 2022
    • Top Ten Traded Currencies of the World 3rd March 2022
    • The Forex Three-Session System 28th February 2022
    • When is the Best Time of Day to Trade Forex? 23rd February 2022
    • Master The Markets With Forexsignals.com 22nd February 2022
    Contact Us

    Best Forex Brokers in Africa
    Forex Trading in Nigeria
    Forex Trading in Kenya


    Risk warning: Trading Forex is risky and can result in the loss of your invested capital. Please ensure that you understand the risks involved and do not invest more than you can afford to lose.
    © 2022 ThemeSphere. Designed by ThemeSphere.

    Type above and press Enter to search. Press Esc to cancel.