List of regulators worldwide

Regulators ensure that forex brokers follow the law and meet minimum requirements to secure clients’ funds (e.g., keep their money in a segregated bank account so that they can be refunded in case of a broker’s bankruptcy). Regulators also make sure that brokers can provide a secure and transparent trading environment for traders and have sufficient resources to facilitate trading. Choosing a forex broker regulated by a strong watchdog in a country that has a rigorous legal framework can provide traders with an added layer of protection and peace of mind.

Countries and regulators known for their strict regulatory framework:

Financial Conduct Authority (FCA) – UK

Swiss Financial Market Supervisory Authority (FINMA) – Switzerland

Autorité des marchés financiers (AMF) – France

Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) – Germany

Komisja Nadzoru Finansowego – Poland

Australian Securities and Investments Commission (ASIC) – Australia

Commodity Futures Trading Commission (CFTC) – USA

Financial Services Authority (FSA) – Japan

Monetary Authority of Singapore (MAS) – Singapore

All the countries and regulators listed above are known for: rigorous oversight of financial institutions, strict capital requirements for forex brokers, regular audits and reporting requirements, enforcement actions against non-compliant brokers.

Countries and regulators with a reputation for having a more relaxed legal framework:

Cyprus Securities and Exchange Commission (CySEC) – Cyprus

Financial Markets Authority (FMA) – New Zealand

Due to a more relaxed approach, they are popular among forex brokers. However, they are still stricter than regulators in offshore financial centers.

The regulators  in the offshore financial centers popular among forex brokers:

Financial Services Commission (FSC) – Mauritius
In recent years, the FSC has increased its regulatory requirements, and it is now considered to be a relatively strict regulator compared to some of the other offshore regulatory authorities.

Financial Services Authority (FSA) – Seychelles

Labuan Financial Services Authority (LFSA) – Malaysia

Vanuatu Financial Services Commission (VFSC) – Vanuatu

International Financial Services Commission (IFSC) – Belize

The regulatory authorities from exotic islands are less strict than their counterparts in more established financial centers. However, many of these authorities have been taking steps to strengthen their regulatory frameworks and increase their oversight of forex brokers in recent years.

You should always conduct due diligence and carefully research the regulatory status, as well as the reputation of any broker you are considering, regardless of where the broker is based or regulated.

Finally, some countries do not require forex brokers to be regulated to operate.

Countries that allow forex brokers to operate without regulators oversight:

St. Vincent and the Grenadines
Marshall Islands
British Virgin Islands
Cayman Islands

It is important to note that while these countries may allow forex brokers to operate without regulation, this does not necessarily mean that these brokers are unscrupulous or engaging in fraudulent activities. However, a lack of regulatory oversight in these jurisdictions can make it easier for brokers to take advantage of traders. I highly recommend to exercise additional caution when dealing with unregulated brokers.


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