Everywhere millions of exchange transactions are carried out constantly via OTC markets. Internet network, as a limitless extent, gives for unimpeded accession. In addition, regardless of geographic boundaries, every trader may act in any of the existing currencies. Within the retail Forex market, speculative operations are widely spreading. Consequently, brokers, banking institutions or other may appear who are deal with fraud, the presence of hidden fees or prohibitively high, and so on. Internet-based trading is tranquil, but, at the same time, sites that are not officially registered may disappear at some point, and your money will disappear too. Regulator rules for Forex brokers aim to prevent all such practices and to ensure maximum protection level.
NFA acts as a leading provider of innovational regulator rules for Forex brokers designed the derivatives market, inclusive Forex. This organization’s activities include following:
Amongst main stipulations of regulator rules for Forex brokers, drawn up in order to ensure the protection of small investors, some of the following can be distinguished.
Prior to registering a trading account, you need to ensure you have full ownership, corresponding status and trading company location, mobile application and web resource. Almost all resources are located and are subject to management beyond the United States; accordingly, they cannot be checked and confirmed by a supervisory body within the host country.
NFA was provided with a special online verification system, which is abbreviated as BASIC. Through such a system, it is possible to review brokerage company status in the United States by individual NFA ID, name of organization, or by pool.
In general, it can be concluded that the financial field rules are quite compound and subject to frequent changes in accordance with how the market develops. Furthermore, the authorities are constantly on the lookout for a balance, as overly loose controlling may cause ineffective investors protection, and over controlling will lead to activity of economic sector will be reduced.