Are you considering a career as a regulated Forex broker? Forex brokers work in the ever changing field of foreign currency, making millions for their customers. They also earn quite a bit of money in commissions for themselves, betting on which countries exchange rates are going to rise or fall in the future.
Who Regulates Forex Brokers?
Since Forex brokers work throughout the world in numerous different countries and cities, no single agency regulates all Forex brokers. Instead, brokers are regulated through the local brokerage regulation agency in their respective home countries. Hence, U.S. Forex brokers are regulated by the Securities Exchange Commission (SEC), the Federal Reserve System, the Federal Deposit Insurance Corporation, or the Office of the Comptroller of that currency.
Forex brokers located in Japan are regulated through the Financial Services Agency, while Forex brokers in Iraq are regulated by the Iraq Securities Commission.
What Rules Cover Forex Traders?
Trading on foreign exchanges is very different than trading on the NYSE or the Nasdaq. The rules for Forex trading are made by the National Futures Association. The majority of trades involve the major currencies: The American, Australian, and Canadian dollars; The Euro, British Pound, the Japanese Yen, and so on.
National Futures Association
Regulations such as these are set forth in the National Futures Association Retail Off Exchange Foreign Currency Rules. Included in these rules is information about assessments as well as dues, requirements for managing a Forex account, obligations of assignees, and an assortment of additional situations that arise throughout the course of trading.
The online website of the National Futures Association carries a wealth of information for the starting Forex broker as well as Forex Investor. There you will learn rules that govern Forex traders; Forex investor alerts; Forex requirements for reporting, notices to Forex members, notice of judgments interpreting the rules, as well as other resources for individuals who wish to learn more about Forex.
The website also furnishes links to resources for electronic filings needed to establish and maintain a Forex brokerage: promotional materials, exemptions, Forex reporting, complaints, and the annual questionnaire.
Be Wary of Unregulated Brokers
An increasingly pervasive problem that investors need to aware of is Forex fraud. The Commodity Futures Trading Commission approximates that customers have lost over $395 million dollars in fraudulent Forex schemes.
For Additional Information
If you are looking to learn more about Forex that can be found on the National Futures Association website, you can find out more Forex trading information by a self study program or by taking a course.
