What is Forex Regulation?


Forex Market is a cross-border transactional business. Thus like every other stock exchanges forex market does also require a regulation for the common interest of the traders & Government Bussiness Policies.This Regulation gets enforced on the brokers so that brokers can not cheat traders or investors. Forex brokers usually get regulated or licensed from the operation country or also from the different other countries. Following are the all listed Forex regulatory bodies from different countries:

Country Name

Forex Regulator

Anguilla Anguilla Financial Services Commission
Antigua Eastern Caribbean Securities Regulatory Commission (ECSRC)
Australia Australian Securities and Investment Commission (ASIC)
Azerbaijan State Committee for Securities (Azerbaijan)
Baku Stock Exchange
Bangladesh Securities and Exchange Commission (SEC)
Belgium The Financial Services and Markets Authority (FSMA)
Belize International Financial Services Commission (IFSC)
British Virgin Islands BVI Financial Services Commission (FSC of BVI)
Bulgaria Financial Supervision Commission of Bulgaria (FSC Bulgaria)
Canada British Columbia Securities Commission (BCSC)
Canadian Investor Protection Fund (CIPF)
Financial Transactions and Reports Analysis Center of Canada (FINTRAC)
Investment Industry Regulatory Organization of Canada (IIROC)
Ontario Securities Commission (OSC)
Ombudsman of Banking Services and Investments (OBSI)
Cayman Islands The Cayman Islands Monetary Authority (CIMA)
China China Securities Regulatory Commission (CSRC)
Croatia Croatian Financial Services Supervisory Agency (CFSSA)
Cyprus Cyprus Securities and Exchange Commission (CySEC)
Czech Republic Czech National Bank (CNB)
Denmark Danish Financial Supervisory Authority
Dominica Financial Services Unit (FSU)
Dubai Dubai Financial Services Authority (DFSA)
Estonia The Financial Supervision Authority
Finland FIN-FSA
France Autorite des marches financiers (AMF)
Credit Institutions and Investment Firms Committee (CECEI)
French Autorité de Contrôle Prudentiel et de Résolution (ACPR)
Germany Federal Financial Supervisory Authority (BaFin)
Greece The Hellenic Capital Market Commission (HCMC)
Hong Kong Securities and Futures Commission (SFC)
Hungary Hungarian Financial Supervisory Authority (HFSA)
Iceland The Financial Supervisory Authority (FME)
India Securities and Exchange Board of India (SEBI)
Indonesia Commidity Futures Trade Regulatory Agency (CoFTRA)
Ireland Central Bank of Ireland
Isle of Man The Financial Supervision Commission (FSC)
Israel The Israel Securities Authority (ISA)
Italy Commissione Nazionale per le Società e la Borsa (CONSOB)
Japan Financial Services Agency of Japan
Japan Securities Dealers Association (JSDA)
Japan Investor Protection Fund (JIPF)
Kenya Capital Markets Authority (CMA)
Kuwait Ministry of Commerce and Industry in Kuwait
Latvia The Financial and Capital Market Commission (FKTK)
Lebanon Banque Du Liban
Lithuania The Lithuanian Securities Commission, Bank of Lithuania
Luxembourg Commission de Surveillance du Secteur Financier (CSSF)
Liechtenstein The Financial Market Authority Liechtenstein (FMA)
Malaysia Securities Commission Malaysia
Malta Malta Financial Services Authority
Mauritius Financial Services Commission of Mauritius
New Zealand Financial Markets Authority (FMA)
Financial Services Complaints Limited (FSCL)
Nigeria Securities Exchange Commission Nigeria
Norway The Financial Supervisory Authority of Norway
Pakistan Securities and Exchange Commission of Pakistan (SECP)
Panama The Securities Market Superintence (SMV)
Philippines Securities and Exchange Commission Philippines
Poland Polish Financial Supervision Authority (PFSA)
Portugal Comissão do Mercado de Valores Mobiliários (CMVM)
Romania Romanian Financial Supervisory Authority (ASF)
Russia Centre for Regulation of Off-Exchange Financial Instruments and Technologies (CRFIN)
Seychelles Seychelles Financial Services Authority (FSA Seychelles)
Singapore Monetary Authority of Singapore (MAS)
Slovakia National Bank of Slovakia (NBS)
Spain Comisión Nacional del Mercado de Valores
South Korea Financial Supervisory Commission
Sri Lanka Securities and Exchange Commission of Sri Lanka
St. Vincent and the Grenadines The Financial Services Authority
Sweden Swedish Financial Supervisory Authority
Switzerland Swiss Financial Market Supervisory Authority (FINMA)
Thailand Securities and Exchange Commission of Thailand
Turkey Capital Markets Board - SPK
UAE Emirates Securities and Commodities Authority (SCA)
United Kingdom The Financial Conduct Authority (FCA)
Financial Services Authority (FSA UK)
United States Financial Industry Regulatory Authority (FINRA)
US Securities and Exchanges Commission (U.S. SEC)
Securities Investor Protection Corporation (SIPC)

How Can Forex Regulatory Bodies Help Traders?

Some top-level regulatory bodies hold the right to insured trader fund from brokerage bankruptcy. Thus if a broker got bankrupt then the trader can retrieve their money back from the broker with the forex regulatory authorities legally. Plus in case of any kind bad practice from the brokerage site, trader or investors can file a case against that broker.

But there is one thought if your live in Australia & your broker got regulated from Europe. Then in case of any scam, you need to file a case under European law in a European court. In such scenario, case maintaince will be costly. Thus it is better to open an account with a brokerage service who have an office in your country. So that you can easily reach over there in case of any dispute.

Forex Market Decentralization

Forex Market is a decentralized market, unlike stock market which is a centralized market. Decentralization means there is no head of this market. Thus for same currency pairs, price quotation can be varies trader to trader. There is no control on what price quotation will be executed among all traders across the globe. More clearly, as this market pricing has no control, thus it is riskier than the stock market. Somes during any black swan event currency price can change drastically. Also, different bank or liquidity providers can also manipulate market pricing according to their needs. For example, during SNB Swiss franc flooring decision(2011) market moved 1000 pips in 1 minute. Some traders made the fortune of out it, some exactly the opposite. Generally, it is always wise not place any trade during any big event.

Different forex brokers have a different quotation for same currency as they use different pricing technologies & data center. The only plus point of this kind of market structure is high liquidity.

Next Forex Trading Lesson: Forex Currency Pairs