Hi seputarforex,
I am still very new to forex brokers, is an introducing broker also under the supervision of the broker's regulator?
For example, FXopen broker regulated by FCA UK, are FXopen IB customers in Indonesia also protected by the FCA?
Thank you seputarforex
@ Erik:
- … Does an introducing broker also fall under the regulatory supervision of the broker?
As far as we know, no. What is supervised is the broker. An Introducing Broker (IB) is an individual (not a legal entity) who is an extension of the broker, so their status is the same as a client. The regulatory body only supervises registered brokers.
Read also: What is an Introducing Broker and White Label?
- For example, for FXopen which is regulated by the FCA UK, are FXopen IB clients in Indonesia also protected by the FCA?
FXOpen clients are still protected by the regulatory body that regulates FXOpen, namely the FCA UK, even if registration is through an IB. In this case, if the broker is proven to be fraudulent, clients can directly complain to the regulator with complete evidence.
Becoming a client via an IB or not depends on the broker's policy. The regulatory body remains responsible for the security of client funds.