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Regulated forex broker | US regulation difference

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Old 13-01-2016, 05:11
Level 1 Lasers Member
Join Date: Dec 2015
Posts: 8
Default Regulated forex broker | US regulation difference

Care should be taken to verify each ownership, status, and location of each Forex trading firm, website, or app before signing-up for a trading account. There are many websites claiming low brokerage charges and high leverage (allowing more trading exposure with less capital), some as high as 1000:1. However, almost all such sites are hosted and operated from outside the US and may not be necessarily approved by the concerned authority in the host country. Even those authorized locally may not necessarily have regulations that apply to US residents. Regulations may slightly vary from country to country in terms of offered leverage, required deposits, reporting requirements, and investor protections.
The National Futures Association (NFA) is the “premier independent provider of efficient and innovative regulatory programs that safeguard the integrity of the derivatives markets” (including Forex). The scope of NFA activities is as follows:
• After due diligence, provide necessary licenses to eligible Forex brokers to conduct Forex trading business.
• Enforce required adherence to necessary capital requirements.
• Combat fraud.
• Enforce detailed record keeping and reporting requirements regarding all transactions and related business activities.
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Old 11-01-2021, 11:50
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Join Date: Apr 2016
Posts: 336
Default Re: Regulated forex broker | US regulation difference

Regulated brokers are those who are registered with the financial regulatory body of their country (for example the FCA in the UK) and who must comply with the rules set down by that body. Unregulated brokers, on the other hand, do not have to comply with any rules but can behave in any manner they see fit.
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Old 28-01-2021, 18:48
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Join Date: Nov 2018
Posts: 1,020
Default Re: Regulated forex broker | US regulation difference

True. Unregulated brokers are a big problem for the industry, they are often involved in scams. It's always recommended to avoid such entities.
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Old 26-09-2021, 04:52
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Join Date: Jun 2015
Posts: 401
Default Re: Regulated forex broker | US regulation difference

As it's modern age so now we should remove all the unregulated broker since for this most of the trader loses their money. However, if anyone wants to keep pace with a regulated broker then he might choose FreshForex broker as they are absolutely regulated.
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