World Regulatory Authorities that Regulate Forex Trading
Although the forex market is still not well regulated, there are many recent changes in jurisdictions all over the world indicating a clear tendency to introduce strict and sometimes even excessive regulation of the forex industry. Unlike stock or commodity markets, where trading occurs on well regulated exchanges such as the London Stock Exchange, or the New York Stock Exchange, all online foreign exchange transactions take place over the counter (also known as OTC) between willing buyers and sellers. As a result the price of a particular currency pair, which different forex brokerage firms offer to their customers, may differ significantly to the actual rate, often leading to large losses, manipulations and other abusive or illegal actions.
The regulation of forex firms within the online forex industry is a welcomed and long expected step in order to bring stability, fairness, and transparency to international forex markets. Below you will find a list of some of the forex regulatory authorities from around the world that regulate fx trading.
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Here are some of the main forex regulatory authorities which regulate forex brokerage firms: