As we discussed not too long ago, the forex exchange has systems in place for regulation. If it did not, people could get away with cheating all the time. That is why there are financial institutions around to ensure that people observe financial legislation. Specifically, legislation as it pertains to the forex market. However, there is no one central authority to control all of this movement. As you can imagine, it would be very difficult for any regulatory body to do so. Especially when considering the fact that the forex market is just so large. Instead, separate countries have their own institutions for dealing with their own legislation.
A country can also have multiple regulatory bodies in place. With all that said, we would like to point out some of these legal bodies to you. You can check these if you want to find out how legitimate a forex broker is.
A number of regulatory institutions
Here, we will focus on large, important economies. These are the ones people are most likely to deal with.
In the United States, you have the Commodities Futures Trading Commission (CFTC), and the National Futures Association (NFA).
In the United Kingdom, you have the Financial Conduct Authority (FCA).
For Australia, the Australian Securities and Investments Commission (ASIC) is of importance.
Japan has its Financial Services Agency (FSA).
Canada then has the Investment Industry Regulatory Organization of Canada (IIROC).
The Cayman Islands is a major tax haven, making it quite important financially speaking. It has the Cayman Islands Monetary Authority (CIMA).
Hong Kong has the Securities and Futures Commission (SFC).
Finally, the city-state of Singapore has the Monetary Authority of Singapore (MAS).
These institutions also can change regulations as time goes on. This comes with changes in legislation and changes in clients’ needs. Thus, overall, they make sure that forex trading is fair for everybody.