How is Forex regulated?

Forex is the largest, most liquid market on the planet. That size and scope creates unique challenges regarding market regulation.

How do you regulate a market that is trading 24 hours a day, all over the world?

There is no centralized body governing the currency trading market; instead, several governmental and independent bodies supervise forex trading around the world. Some of these include, but are not limited to:

COUNTRY

SUPERVISORY BODIES

United States

The National Futures Association (NFA) Commodities Futures Trading Commission (CFTC)

United Kingdom

Financial Conduct Authority (FCA)

Australia

The Australian Securities and Investments Commission (ASIC)

Japan

The Financial Services Agency (FSA)

Canada

The Investment Industry Regulatory Organization of Canada (IIROC)

Cayman Islands

Cayman Islands Monetary Authority (CIMA)

Hong Kong

The Securities and Futures Commission (SFC)

Singapore

The Monetary Authority of Singapore (MAS)

The global supervisory bodies regulate Forex by setting standards which all brokers under their jurisdiction must comply with. These standards include being registered and licensed with the regulatory body, undergoing regular audits, communicating certain changes of service to their clients, and more. This helps ensure that currency trading is ethical and fair for all involved.