The IFSC refers to the International Financial Services Commission as an agency of the Belize government responsible for financial regulation. The main functions of IFSC include market participation, exchanges and settlement, and enforcement of financial regulation. It is highly popular in trade markets because many online brokers of forex receive their international license from IFSC. The international financial services commission is also working to regulate the non-banking sector of the Belize economy. This company was established in 1999 under the International Financial Services Commission Act (IFSCA), and it also includes representatives from many sectors (both public and private). The act of the International Financial Services Commission was enacted to oversee the growing offshore sector in Belize. The IFSC Belize isread more
Global Regulatory Entities
Why is broker regulation important to you as a trader?
The forex market is a giant. Almost 5 trillion dollars’ worth of transactions happens daily.
With the size this big, you need regulatory protection. You don’t want unregulated brokers to put your deposit and profits at risk when it comes to withdrawal time.
So, how can you achieve protection?
Simple, by trading with the regulated forex broker.
When you trade with the regulated broker, it adds multiple layers of security. If a broker meets all of the key conditions and obtains a license from the regulatory body, it signifies that the broker follows standards.
One of the major concerns when trading with unregulated forex brokers is that they are not required to adhere to any recognized standards.
You can’t rule out unethical or illegal activity. If something goes south, you can’t do anything about it.
When choosing a forex broker, you need to take the first step as a trader to check the broker’s regulations. After all, you wouldn’t give someone claiming to be authentic thousands of dollars, would you?
You might be thinking, “How can I choose a regulated broker”?
Well, it’s not that difficult. Several regulatory bodies help you differentiate regulated from non regulated brokers.
The most reputable forex regulatory bodies are FCA (Financial Conduct Authority) in the UK, ASIC (Australian Securities and Investments Commission) in Australia, and NFA (National Futures Association) in the US.
Take your time when selecting a broker. Don’t get caught by bonus offers and a flashy website.
Want to know if your broker is regulated? Just search your chosen broker on the below-mentioned listed regulatory bodies’ websites.
AFD is termed as Association of Forex dealers which is a self-regulatory organization (SRO) of Russia. It mostly brings together the participants (brokers) of the financial market known as Forex. The AFD organization was established at the end of 2015 by Finam Forex as its founder broker. After that, the organization got its license from the CBR. After which, AFD entered the Request group, Trastforeks and VTB 24 Forex also received its license from the Bank of Russia. Association of Forex Dealers Central Bank of Russian Federation accredited association of Forex dealers on October 12, 2015. Thus, AFD became the first official self-regulatory organization that unites all the Russian licensed brokers under its command. Also, AFD is leading another organizationread more
A German Financial Authority, Bundesanstalt für Finanzdienstleistungsaufsicht, is abbreviated as BaFin, known as Federal Financial Supervisory Authority. It is located in Germany as an independent federal institution having headquarters in Bonn and Frankfurt. BaFin falls under the supervision of the Federal Ministry of France. BaFin is responsible for 2700 banks, 800 Financial Services institutions and more than 700 insurance undertakings. What is BaFin? BaFin is a popular financial regulator in Germany responsible for the effective stability and integrity of the German Financial System. This regulatory entity was established in 2002 to serve as a primary regulator of financial markets and institutions in Germany. It is also well known by its German name Bundesanstalt für Finanzdienstleistungsaufsicht. It was regulated under theread more
IFSCA is the abbreviation of International Financial Services Centres Authority, which provides the services to all the purchasers outside the local or domestic economy jurisdiction. This regulatory entity deals with the financial products, the flow of finances, and services across borders. The International Financial Services Centres Authority was introduced under the supervision of the central government. Its primary purpose was to regulate all the International Financial Services Centres (IFSC) financial services with its headquarter in Gandhinagar (Gujarat). Introduction about International Financial Services Centre Authority (IFSCA) Talking about IFSCA, it is deliberately engaged in providing all the Indian corporates with easy access to the global financial markets. It is also aiming to promote and complement the additional development in the financialread more
The Central Bank of Russia is the country’s institution responsible for developing the state’s financial and monetary policy, and it has the right to regulate money and banking activities. The CBR is also in charge of licensing banking institutions, supervising their conduct, and even revoking the license if their behaviour is not as good as expected by the institution. The Russian economy, largely dependent on the exportation of oil, machines, metal, all kinds of manufactured products and resources. The Forex market is very important because, after the fall of the Soviet Union, the Russian Federation continued to use the Ruble as its currency. This way, when selling its products to other countries, the Russian federation receives mostly Euros and Dollarsread more
Currently the there is no global authority overseeing the activities of the financial markets. Still, individual efforts from each country exist to figure out what is going on and which is the best way to control the financial activities related to Forex. However, this situation has started changing, and important regions of the world are making agreements about facing this reality. A notable example is the European Union promoting and already applying legislation such as the Markets in Financial Instruments Directive (MiFID). Dublin, an important financial centre of the world, Ireland companies, as a part of the European Economic Area, enjoy some benefits and are free to carry businesses to all the European Union. This situation led the Central Bank ofread more
FSCA, The Financial Sector Conduct Authority, is a market conduct regulator of financial institutions. It regulates financial institutions licensed in the financial sector law and provides financial services and products to the market. Structures regulated by FSCA include insurers, administrators, banks, market infrastructures, and retirement funds. FSCA is responsible for assisting the financial stability and conducting supervision and Regulation of the market. FSCA’s goal is to provide financial customers education and protection by the financial institutions. In addition, it ensures the integrity and efficiency of the market so that the financial intuition promotes fair treatment for their customers. FSCA history On 1st April 2018, the Financial Sector Conduct Authority (FSCA) was established to replace the Financial Services Board. It wasread more
Defining the term ASIC is an independent Australian Government body that is generally administered and set up under the Australian Securities and Investments Commission Act 2001 (ASIC Act). However, the majority of the work of the ASIC is carried out under the supervision of the Corporations Act. ASIC main role ASIC works as Australia’s integrated corporate and markets, financial services, and consumer credit regulator. The primary role of the ASIC act falls under: It helps maintain, facilitate, and improve the financial system‘s overall performance and the entities involved. Investors and consumers will be able to promote with complete confidence and can participate inside the financial system. It hence administers the law effectively and has minimal procedural requirements. Capable of storing,read more
CySEC, Cyprus Securities and Exchange Commission, is an independent public regulatory authority responsible for regulating and administering asset management and collective investment sector, the investment services sector, and the transaction made in the transferable securities within the republic of Cyprus. It also deals with those services not regulated by the Cyprus Bar Association and ICPAC. The Cyprus Securities and Exchange Commission was established under Section 5 of the Securities and Exchange Commission’s establishment and responsibilities Law in 2001. Thus, it came into existence as a public regulatory entity. Its operations are authorized by the Laws regulating the responsibilities, powers, organizations, and structures of the Cyprus Securities and Exchange Commission. Cyprus mission and vision The mission of the Cyprus Securities Andread more
SCB is the abbreviation of “The Securities Commission of The Bahamas (SCB).” This sector is working as the main organisation responsible for the regulation and oversight of the financial services industry that falls within the territory of the Bahamas. In 1995, SCB was first introduced under the supervised terms of the Securities Board Act (1995). And now, it has modernized the sector of financial services in the Bahamas. Its current main office is located in the Nassau area of The Bahamas, where it is working under the small staff collaboration of 72 employees working full-time. SCB has grown to a new level in the past few years once the Bahamas’ financial services industry was established. They have even introduced someread more