Foreign Exchange Regulation

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Foreign Exchange Regulation

 

Some of the foreign exchange markets are Financial Services Authority.

Objective

The objective of regulation is to ensure fair and ethical business behaviour. In their turn all foreign exchange brokers, IBs and signal sellers have to operate in strict compliance with the rules and standards laid down by the Forex regulators, otherwise their activity is regarded as unlawful. First of all, they must be registered and licensed in the country where their operations are based, which ensures quality control standards are met. In accord with this regulation licensed brokers are subject to recurrent audits, reviews and evaluations which force them to maintain the industry standards. Foreign exchange brokers must keep a sufficient amount of funds to be able to execute and complete foreign exchange contracts concluded by their clients and also to return clients’ funds intact in case of bankruptcy.

Not all foreign exchange brokers are regulated.

See also

External links

This article uses material from the Wikipedia article foreign exchange regulation, which is released under the Creative Commons Attribution-Share-Alike License 3.0.

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