Regulated Forex BrokerTypically in many jurisdictions, these are also the only companies that are allowed to operate as forex brokers, due to the strict financial regulations and laws requiring investor protection. The regulated foreign exchange brokers are authorized and are accountable to the relevant authorities, typically a financial services authority. Before these brokers are authorized to operate as brokers, they need to understand and pledge to follow specific regulations given by the financial authority. Also, the brokers are typically held accountable for any breaches to these rules and investors can make claims based on these rules to the financial authority. The financial authority also often acts as a proactive inspecting organizations, doing checks that the operations are done according to the sets of rules needed to operate. In order to find out if you are dealing with a regulated FX broker, you need to establish the registration country of the forex broker. Also, you need to find out if your country's laws allow you to use foreign forex brokers for the specific purposes that they operate under. As an example of regulatory authorities, Switzerland has for that purpose the Swiss Federal Department of Finance, which regulates the forex brokers that operate out of the country. Much of their regulatory documents are in either German or French or even Italian, and only some have been translated to English. And some of the translations are only available for purchase, not as free downloads. Their site is located at www.efd.admin.ch |