35. What is Regulation? And Why Should Regulation Exist?

November 15, 2022
Forex broker regulations are regulations drawn up by independent or government-owned institutions to supervise forex brokers and maintain their compliance with law and order. Boker regulations ensure that traders can trade in a safe environment.

Forex broker regulations are regulations issued by the authorities to supervise forex brokers. The rules are set as the standard to eliminate frauds that might be committed by brokers. In addition, broker regulations ensure that the quality level of service, features, and facilities of a broker can be maintained. In other words, forex broker regulation is very important because it can protect the interests of traders.

Below are aspects that are carefully maintained by broker regulations:

  1. Separate financial accounts. Regulated brokers must keep their clients' funds in accounts segregated from the company's financial assets. This policy is set to ensure the broker does not misuse clients' money under any circumstances. If a company or broker goes bankrupt, the broker's creditors are not allowed to access investor funds to pay off the broker's debt.

  2. Solvability and capital requirements. One of the most important requirements for any regulated forex broker is the ability to service debt (solvency) and have enough capital to pay off their own debts without using client funds.

  3. Regular audits and investigations. Once regulated, forex brokers must submit regular reports on all their operations to the relevant authorities to prove their compliance with forex regulations. In addition, they must be regularly audited and investigated to verify their capital adequacy ratios.

Education (46)

1. What Is Forex? 2. Why Does Forex Market Exist? 3. What Drives the Forex Market? 4. Why is Forex Trading Popular? 5. Can I Get Rich in Forex? 6. Are You Curious? Want to Discover More about Forex Trading? Meet Demo Acount! 7. I'm a Newbie, How to Master Forex Trading? 8. What Forex Knowledge Should I Conquer? What Are the Steps to Go Thorugh the Journey? 9. What are Software and Glossaries in Trading Forex? 10. How to Read the Forex Market? 11. How to Practice Forex Trading? 12. How to Ride on the Forex Wave? 13. How to Prepare Basic Trading Requirement? By the Demo Account? What about the MT4/MT5? 14. What is Bid-Ask Spread? 15. What is Pip? 16. What is Lot Size 17. What is Leverage in Forex Trading? 18. What is Margin? 19. When to Trade Forex? 20. What is the Most Dominant Market in Forex? How is the Characteristic? 21. What is Chart in Forex? 22. What is Candlestick? Why is It the Most Popular Chart in Forex? 23. What is Technical Analysis? 24. What is Fundamental Analysis? 25. What are MT4 Indicators and How to Use Them? 26. What is Risk in Forex? 27. What is the Psychological Effect in Forex Trading? 28. How to Compile a Strategy Template? 29. How Long Should You Practice in a Demo Account? 30. When Do I Need to Start Learning about Brokers? 31. What Exactly Does a Forex Broker Do? 32. Can I Trade Forex without Broker? 33. How Much Money Do You Need to Trade in Forex Brokers? 34. How to Choose a Good Forex Broker? 35. What is Regulation? And Why Should Regulation Exist? 36. Why Should You Choose Forex Brokers with Top-tier Regulations? 37. How to Choose Forex Brokers Based on Your Need and Where You Are From? 38. What Brokers Should You Avoid? 39. Is There Any Broker Scam in History? How Bad Is It? 40. What are the Most Popular Brokers in The World? 41. What are the Best Brokers For Entry-Level Traders? 42. What are the Best Brokers for Traders with Minimum Deposit Capabilities? 43. Which Broker Provides a Demo Account and Easy Setup? 44. Which Broker Provides Easy Registrations? 45. What and How to Deposit on Forex Brokers? 46. What and How to Withdraw from Forex Brokers?




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