Forex Regulation -What does it mean for brokers, IBs, and strategy providers?

As it is legally defined, regulation is a rule of order having the force of law, prescribed by a superior or competent authority, relating to the actions of those under the authority's control. Find out more about Forex regulation and why choosing a regulated brokerage service is important and can have a significant impact on your trades.

Regulation in the Forex Market

The Foreign Exchange Market, commonly known as FX, or simply Forex – is the biggest and most liquid market in the entire world – with a daily trading volume of around US $5.3 billion. The market is active 24/7, but there is no centralized regulatory body to conduct and supervise the activity of all online forex brokers at all times. Ever since the internet was introduced, hundreds of forex brokerage websites started to appear daily, which made this industry very competitive, but extremely risky, too.

Regulation in the Forex Market is the one that ensures fair and ethical business behavior; and requires brokers to operate in strict compliance with its rules and standards. It is safe to say that being regulated is now a criterion for traders when choosing an online forex brokerage provider. Before you start forex trading and open an account with an online forex broker - the first thing you need to do is check if it is regulated!