With the unexpected onset of the global financial crisis, regulation has taken on renewed importance. While countries are scrambling to get their financial houses in order, the Forex industry is feeling the impact of the reaction. The rules are changing and, along with them, the opportunities for trading and growing successful Forex businesses has changed also.
Smaller brokerages are closing their doors or getting swallowed up by larger, more resilient firms. And everyone is taking "regulation" more seriously.
We've found that most retail traders don't really understand a lot about regulation and how it affords them some measure of protection in a still burgeoning industry.
Some firms claim they are "regulated" when they are really only "licensed" and a lot of traders don't understand that distinction and how it could impact their trading accounts.
So we have decided to attempt to clarify each Forex broker's regulatory status as best we can. Our first step is to review each Forex broker in our database and add links to the regulatory authorities with which they are registered. We have added a "Regulation" pane to our company profiles. You can see an example at GAIN Capital's company profile.
Along the way we will be posting articles explaining what these agencies do and how your Forex broker's registration with them either does or does not afford you any protection.
We think you're going to be surprised at some of the things we've discovered.