Do you want to invest and perhaps you are in the dilemma of choosing a regulated broker or not? You may think that after all it does not have to be such a bad idea to do it with a broker that is not regulated, so you will not have to worry about certain issues, requirements, regulations. But… is it really like that? Why trade with a regulated broker?
Regulated brokers are subject to the supervision of their activities by the governing bodies. The fundamental mission of these regulators is to ensure that financial entities comply with current financial legislation. They also ensure the protection of investors and the proper marketing and transparency of the services they offer. In addition, traders can go to them to make any claims due to possible bad practices on the part of the broker, so we can say that regulation is a very important aspect to consider if you are trying to choose one.
To carry out their duties, these regulatory bodies use the issuance of a series of regulations that are strictly enforced and provide guarantees for investors. Among them are segregating their clients’ accounts from their own funds and limiting leverage. As expected, these regulations make the regulated companies strive to provide correct trading conditions, since failure to comply with them can result in sanctions.
Currently there are various regulatory entities although not all provide the same security. In some cases the rules may be stricter than in others, and a broker may be regulated by more than one entity. Here is a list of some of the most recognized regulatory agencies:
|United Kingdom||FCA||Financial Conduct Authority|
|Spain||CNMV||Comisión Nacional del Mercado de Valores|
|Germany||BaFIN||Bundesanstalt für Finanzdienstleistungsaufsicht|
|Cyprus||CySEC||Cyprus Securities and Exchange Commission|
|Switzerland||FINMA||Financial Market Supervisory Authority|
|Australia||ASIC||Australian Securities and Investments Commission|
|USA||NFA||National Futures Association|
|USA||CFTC||Commodity Futures Trading Commission|
Regulation: FCA (UK), ASIC (AU), CySEC (CY), JSC (JO), EFSA (EE)
Regulation: FCA (UK), ASIC (AU), SySEC (CY), FSAS (SC)
Regulation: FCA (UK), CSSF (LU), SCB (BS)
Regulation: FCA, SySEC, FSCA, FSC
Regulation: CFTC, NFA, IIROC, FCA, MAS, ASIC, MFSA, FSC
Regulation: CFTC, NFA, FCA, MAS, BaFin, ASIC, BMA
Regulation: CFTC, NFA, FCA, CIMA, SySEC, FSA, ASIC, IIROC
Regulation: FCA, ASIC, SySEC, FSCA, ISA
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