What Is FINMA？

Why Do Traders Prefer FINMA Forex Brokers?

It is not a secret that traders from around the world prefer Forex brokers regulated by the FINMA for enjoying complete peace of mind over the safety of their invested capital. FINMA is a Swiss regulatory agency that deals in regulating financial entities through the most stringent guidelines based on regulatory reforms and orders passed down by the Swiss Parliament. The Swiss Financial Market Supervisory Authority (FINMA) serves as the single governmental agency in the Swiss financial markets that acts as a financial watchdog for entities such as Forex brokers, stock brokers, stock exchanges, fund managers, insurance companies, securities dealers, and other similar financial enterprises.
In essence, FINMA is considered to be the best regulatory agency in the world, and being regulated by FINMA requires a company to undergo a complicated and tedious procedure. The tight regulatory guidelines ensure that only reliable and high-quality brokers are offered a valid FINMA license, which guarantees that FINMA regulated brokers only provide the best trading environment for traders in the Forex markets.

How Does FINMA Operate?

FINMA has its headquarters in Bern, Switzerland, and was approved for heading the regulatory proceedings by the Swiss Parliament in 2007. FINMA is the result of the Swiss government’s plan to incorporate all aspects of regulating financial entities through a single autonomous agency, which has resulted in maintaining the integrity of the capital markets through constant auditing and surveillance of member firms. The Swiss Parliament creates a framework that is followed by FINMA for regulating its member companies, which is tweaked and reformed according to the modern market requirements. Switzerland is the only country in the world that has maintained a neutral stance in international affairs, and the country is renowned for its economic stability and protection of investor rights.
FINMA has the regulatory powers to award sanctions and revoke licenses against any company for inappropriate conduct in the capital markets. FINMA works tirelessly to weed out financial crimes by continuously monitoring the activities of all firms operating in the region, which in turn helps the agency to reduce all instances of financial malpractices. FINMA has supreme powers to initiate investigations against any bank or a financial institution for any financial irregularities, and can suspend activities for an indefinite period to ensure a fair and honest investigation into the dispute. FINMA also works independently and does not answer to the Federal Department of Finance or the Central Federal Administration, which gives the agency complete autonomy over its operations.
On the other hand, FINMA does not have the right or the powers to award penalties or fines for alleged misconduct, as the power to fine companies for their actions solely rests with the Swiss Parliament. Although the FINMA has the authority to regulate companies through proactive measures, all FINMA decisions can be challenged in a court of law. Regulated member companies can indeed approach a higher authority if it feels that it has been mistreated, or if the FINMA was inefficient in its findings while suspending or terminating the FINMA license. Therefore, FINMA regulated brokers have a chance to redeem themselves if they have not indulged in any financial irregularities, which provides excellent transparency in the way FINMA operates.
The Swiss Government should be credited for creating a world-class regulatory organization that not only caters to the consumer but also ensures a transparent marketplace that creates a stable economy without any visible downsides. FINMA offers consumers and investors the option of reporting financial irregularities, fraud, abuse, and even scams by providing hotline numbers and online resources, which are used extensively to tackle all instances of financial malpractice. FINMA takes the concept of regulation very seriously indeed, and are more concerned about the welfare of investors and the economy rather than generating revenue through membership fees.
FINMA is also highly committed to investor education and keeping investors in the loop by periodically updating their newsletters on broker scams, financial misconduct, and other vital financials that may appeal to the consumer. FINMA has one of the best online resources that are designed with the customer in mind, as every investor that wish to opt for an FINMA regulated broker can always perform adequate research before opening a live account. The FINMA is highly transparent in its guidelines and encourages both companies as well as investors to send in recommendations that can help improve the overall regulatory guidelines for creating a better harmony between the supply and demand.

Strategies Adopted By FINMA To Regulate Forex Brokers

Swiss Forex brokers should be registered with the regulatory agency as a bank, so as to provide brokerage services under the FINMA license. Swiss Forex brokers are connected directly to the liquidity pool providers to offer seamless data streaming and instant access to the market without any middleman. Therefore, FINMA regulated brokers are primarily considered to be global liquidity providers that can absorb any amount of customer volume without actually going bankrupt during high-volatile scenarios. Once established, FINMA FX brokers enjoy lots of freedom for FX operations, and are highly stable, which enables traders to trade the markets like they are supposed to.
FINMA regulated brokers are audited and supervised according to global standards, and the agency regulates its member firms according to a similar set of policies as adopted by regulatory bodies such as the NFA, the FSA, and the ASIC. In fact, the FINMA puts more emphasis on investor protection and auditing standards, which focuses on the protection of investor funds and the privacy aspect. Switzerland has traditionally been in favor or investor privacy, and apart from a few instances of a lapse in judgment, FINMA can indeed boast of being the leading regulatory organization in the world with very minimal cases of financial fraud taking place in Switzerland.

What Are The Drawbacks of FINMA Regulated Brokers

There are very few drawbacks as far as FINMA regulated brokers are concerned, and the drawbacks are minimal when compared to the overall security and trading benefits that are associated with Swiss Forex brokers. The primary disadvantage is that there aren’t enough brokers to choose from, which reduces the competition and the overall cost of trading. The hefty regulatory procedure and stringent rules prevent more companies from setting up their brokerage in Switzerland, which hinders competition between brokers. Higher broker competition can indeed favor the trader regarding better costs, higher trading functionalities, and better trading conditions.
FINMA regulation also warrants a higher investment capital, as all Swiss FX brokers require traders to invest a considerable amount of money for Forex trading. Therefore, smaller traders will find it hard to open a trading account with a small capital, which is a huge drawback in the modern retail trading industry. Of course, a higher investment capital along with a lower leverage can indeed reduce the risk of FX trading; however, smaller market participants will feel left out.
Nevertheless, FINMA regulated Forex brokers are indeed the best brokers in the industry for fair, transparent and honest brokerage services, which is ultimately required for a successful trading career. FINMA has several advantages that work in a trader’s favor, which is why FINMA continues to be the regulatory agency of choice for both retail as well as institutional FX trading.

What Is FMA?

Why Should You Choose FMA Forex Brokers?

FMA, or Financial Markets Authority, is the financial regulatory arm of the New Zealand Government that deals in licensing, regulating, and supervising the conduct of all companies involved in the financial sector. The FMA is a new entity that was introduced in the year 2011, and the operational framework of the FMA is determined by the Financial Markets Bill as well as the Financial Markets Conduct Act of 2013. FMA is the highest authority in the nation that oversees the day to day operations of its member firms to ensure that the country does not face the problems faced by the New Zealand economy from 2006 to 2010. Modern day FMA regulated brokers are licensed according to the international standards of regulation, and the agency has built its framework of operations by carefully incorporating features from other leading regulators such as the neighboring ASIC, the FSA, and the NFA.

Criticisms & Ineffectiveness Of Past New Zealand Regulators

FMA was conceived after the severe failures of past regulatory agencies of the NZ Government, which led to widespread criticisms and economic turmoil. The Securities Commission of New Zealand, which was the primary regulatory agency in charge of regulating financial companies, had been unable to prevent the rise in scams and financial crimes during the period from 2006 to 2010. The global financial crisis of 2007-08 made matters worse as the New Zealand economy took its worst hit in decades, and the resultant aftermath forced the country to intervene and restructure its regulatory guidelines for a transparent, honest, and stable economy.
The Securities Commission of New Zealand was ineffective in dealing with financial frauds, as several regulated brokers indulged in scams and other unethical means to trick investors, which led to several traders losing millions of dollars in trading capital. Together with an economic collapse, New Zealand was faced with investor disdain, financial malpractices, and even genuine brokers running into financial ruin. Therefore, the previous regulatory policies of the Securities Commission of New Zealand had failed completely.

How Did FMA Regulated Brokers Turn The Tide Around?

The New Zealand authorities immediately stepped in to stem the freefalling economy and started introducing powerful regulatory authorities that were capable of dealing with financial irregularities in a stern manner. The FMA was a result of the Government’s approach towards creating a powerful organization that was entrusted with the task of regulating and supervising financial firms without the fear of any backlash. The FMA has total control over its firms and has the authority to issue licenses, revoke them, issue penalties, and even suspend licenses on a temporary or permanent basis.
FMA regulation has managed to change the perception of the New Zealand economy, and over the past few years, New Zealand has managed to gain back the trust of their investors through proactive efforts of monitoring FMA regulated companies. At present, the FMA provides its investors with the option of contacting the FMA regarding any complaints against regulated firms, and traders can send in their grievances through emails, fax, web contact form, or through helpline numbers. The FMA continually seeks help from consumers regarding any information about the conduct of financial firms and organizes periodic surveys to get a first-hand idea about whether companies adhere to the strict code of conduct enforced by the FMA. Consumer abuse or scams are dealt with severely, as even smaller infractions attract substantial penalties and temporary suspension of licenses.

How Did The New FMA Regulatory Reforms Affect The Market?

Although the new regulations helped in restoring investor confidence, several genuine FMA Forex brokers were affected due to the policy changes between the Securities Commission and the FMA. FMA was introduced with an entirely new rulebook that outlawed a wide variety of regulatory guidelines issued by the Securities Commission. Therefore, genuine brokers that were licensed by the Securities Commission found their licenses revoked and banned from operating in the New Zealand financial markets, even if they indulged in honest brokerage services.
The transition between the Securities Commission and the FMA was not carried out in an organized manner, which affected numerous brokers that had a thriving brokerage business. The new FMA regulation not only affected their bottom line but also interfered with the trust that these companies had built up with their clients. Nevertheless, the FMA did manage to bypass the oversight by granting licenses to existing brokers on the particular condition that all brokers were required to conform to the new regulatory guidelines within a prescribed amount of time. At present, all FMA regulated Forex brokers obey the most stringent FMA guidelines that have helped New Zealand to regain its position among the elite countries that are home to some of the trusted and reliable regulatory organizations in the world.

What Are The Other Advantages Of FMA Regulated FX Brokers?

FMA is committed to adhering to the international code of conduct regarding anti-money laundering policies. The Anti-Money Laundering and Countering Financing of Terrorism Act of 2009 is specifically designed to discourage all instances of money laundering by member firms, and the FMA does not provide any exceptions to the cause. All FMA regulated companies should provide a clear statement of their financials through regular audit reports, and should update the FMA about all financial dealings, both local as well as international. A lack of proper reason for any financial irregularities will attract hefty fines along with a cancellation of the FMA license, and the FMA is free to initiative legal action against a company.
The FMA has more power in its organizational structure than some of the other leading regulators, which can be a good thing for traders and investors. On the other hand, brokers might find the rules to be one sided, which should prevent brokers from indulging in any financial scams. The strict sanctions and substantial penalties are further incentives for companies to avoid financial malpractices altogether, which work in increasing trader trust.
Although FMA does everything in its power to eliminate scams and dishonest Forex brokers, there are a few companies that falsely advertise about a valid FMA license, when in fact, they are not affiliated with the organization in any manner. False New Zealand regulatory status was more prominent during the Securities Commission regulatory period, but some companies also take undue advantage of claiming false FMA regulation to this present day. The FMA actively seeks out such companies and add them to their scam alerts, which are updated periodically for investors to stay away from such scams.
FMA is a great regulatory organization that has learned from its past mistakes and is intent on working with investors to create a transparent economy that operates in the best interest of a trader. FMA regulated Forex brokers can indeed help traders to enjoy a successful trading journey, especially if they have a great strategy to make consistent profits.

What Is ASIC?

Trading The Markets With ASIC Forex Brokers

ASIC is one of the oldest regulators in the market, having started off its journey as the Australian Securities Commission (ASC) in 1989. Over the years, the agency witnessed a host of changes in the way they operate by adding multiple industries under its regulatory oversight and was renamed as the Australian Securities and Investments Commission in 1998.
The ASIC is responsible for overseeing the activities of a wide range of industries ranging from insurance companies, corporate governance, securities and investments, fund management, credit organizations, and other financial services. ASIC regulated brokers are now considered to be one of the best in the industry due to the advanced regulatory oversight and several reforms that enabled ASIC to become a highly preferred regulatory agency. In its latest avatar, the ASIC is responsible for regulating the Australian Stock Exchange and acts as an independent regulatory organization for all market participants, including brokers as well as investors.

What Are The Integral Points Of ASIC Forex Broker Regulation?

ASIC had a shaky start to the proceedings by inviting criticisms from several public agencies, including both the Government as well as other private institutions. Although ASIC is entrusted with the task of regulating companies in both the financial industry as well as corporate governance, the ASIC had lacked in its framework to eliminate financial frauds of a larger magnitude sufficiently. Although the ASIC has not received a reprimand for any of its action, the criticisms did pave the way for ASIC to clean up its act and get more involved with its member firms to ensure that all consumer rights are safeguarded under the law. Here are a few reforms that currently help ASIC to counter financial fraud and malpractice in the Australian capital markets:

All ASIC Forex brokers should have a minimum of AUD 1 Million in operating capital, which was raised from an initial amount of AUD 50,000 during the early years. The increase in working capital is in line with other renowned regulatory agencies that stipulate a minimum cap on the operating capital to ensure that a broker can sustain market events and high volatility without going bankrupt.
FX brokers should be regulated by the ASIC to offer Forex trading products and allied services to Australian citizens. ASIC also stipulates that brokers should have a representative office in Australia, and cannot operate from any overseas location. Such a move forces ASIC regulated brokers to set up a full-fledged branch in Australia, which improves accountability and confidence among traders while investing their money.
ASIC requires every regulated member to be completely transparent about their financial dealings, and should submit periodic audit reports to ensure that companies adhere to a strict code of conduct. The ASIC works tirelessly towards ensuring an open and honest financial marketplace by overseeing the activities of every regulated firm, and the agency is quick to penalize and award sanctions to any company that has indulged in fraudulent practices.

Why Do Traders Prefer ASIC Forex Brokers?

ASIC regulated brokers enjoy a special place among traders due to the higher number of genuine and honest brokers that operate out of Australia due to the new and improved ASIC regulations. Australian Forex brokers are now considered to be at par with other regulatory agencies such as the FCA and the NFA, without the usual drawbacks. Here are a few advantages of choosing ASIC regulated Forex brokers:

ASIC takes extra care to ensure that all brokers can guarantee the safety of their client funds by keeping the funds in segregated accounts in the leading banks of Australia.
ASIC does not impose any limit on the maximum leverage, which is known to inhibit the trading freedom for scalpers or high-risk traders.
ASIC does not have any contradictory rules of trading such as the FIFO rule or the no hedging rule, which is one of the major disadvantages of choosing brokers that are regulated by agencies such as the NFA and the CFTC.
All brokers that are part of the ASIC regulatory framework should offer a fast and efficient platform for trading. Trading should be seamless, and there should virtually be no interference from the broker into a trader’s position. ASIC has banned brokers from trading against their clients, thereby preventing any instance of conflict of interest.
ASIC brokers should offer the best in customer satisfaction by ensuring that all consumer complaints are resolved in the best manner. ASIC Forex brokers are known to be consistently at the top of broker rankings when it came to customer satisfaction and a trader-friendly attitude.

Why Do We See A Lot Of Brokers Regulated By The ASIC?

Although ASIC has stipulated strict laws for broker regulation, Australia provides a safe and secure environment for companies with an investor-friendly attitude. Australia provides several incentives for enterprises that are willing to set up a business in Australia. The recent uptick in trust, as well as the business-friendly environment, has enabled several international companies to open up a Forex brokerage in Australia, thereby increasing the number of ASIC regulated brokers in the Forex market.

How To Choose A Preferred ASIC Broker?

ASIC is home to some of the largest names in the industry, as leading FX brokers from all over the world have a significant presence in Australia. Several mainstream brokers with multiple regulatory statuses are bound to have a valid ASIC regulation, which makes it easy for traders to choose an ASIC regulated broker without much difficulty.

What Do I Do If I Have An Issue With A Broker?

ASIC allows consumers to file complaints straight to the ASIC consumer helpline, which deals with all types of issues such as tip-offs, fraud, financial malpractice, and other fraudulent activities. ASIC also makes it easy for whistleblowers and other consumer disclosures to offer anonymous help to the organization for bringing scams and other activities to light.
ASIC provides an online resource known as MoneySmart, which provides great tips on how to manage your finances and invest wisely. MoneySmart is an innovative initiative of the Government that is at the forefront of educating consumers about their rights and how to stay safe from scams, financial fraud, and financial ruin. ASIC is indeed a highly rated regulatory agency that promotes safe and ethical practices in the Forex trading industry, and choosing an ASIC regulated broker will enhance your trading success significantly.

What Is CySEC ?

How To Choose A Reliable CySEC Forex Broker

CySEC Forex brokers are highly prevalent in the industry, as there are tons of brokers regulated by the CySEC that offer a multitude of trading products and brokerage services for investors in the EU as well as from all over the world. CySEC stands for Cyprus Securities And Exchange Commission, which is a regulatory agency based in the Republic of Cyprus. Cyprus is a member nation of the EU; therefore, CySEC regulation comes under the MiFID derivative to offer brokerage services to all European countries under the EEA initiative.

CySEC is one of the very first regulatory organizations to legalize and regulate Binary Options trading, and the agency also allows spread betting brokers to base their operations in Cyprus. Although spread betting is more common in the UK, binary options brokers do tend to set up their base of operations in Cyprus due to the numerous advantages that CySEC provides.

Why Is CySEC The Preferred Choice Among Forex Brokers?

Cyprus is a country that is dedicated to advertising its image as a business-friendly nation. Cyprus has highly lenient tax laws, easier and simpler business set up procedures, and comparatively relaxed rules and guidelines for creating a financial company. Therefore, Forex brokers find it easy to set up their brokerage in Cyprus to capture the vast majority of Forex traders in the EU, which is one of the primary reasons why Forex brokers prefer CySEC over any other regulatory agency.
CySEC also offers brokers the ability to cater to any region in the EU owing to the EEA agreement, which binds all of the EU nations together. In fact, setting up a brokerage business in Cyprus allows a company to tap into the highly lucrative trading market in the EU without having to set up a representative office in any other countries. Such a move will not only help in reducing the tax burden but can also contribute to reducing the overall costs of running multiple satellite offices.

Why Do CySEC Regulated Brokers Face Extended Criticism?

The over-exuberance of Cyprus to appease international companies to do business in the country led to the CySEC initially favoring the brokers over the individual trader. Since its inception in 2001, CySEC had turned a blind eye towards fraudulent financial companies and allowed businesses to operate in the country with minimal sanctions or inconsequential penalties. As a regulatory organization, it is the duty of the CySEC to investigate all instances of customer abuse, and should work for the trader, rather than for the broker. However, the easier CySEC regulations provided an incentive for companies to offer brokerage services without any backup policies, which resulted in numerous brokers going bankrupt without providing any compensation to the investors.
Several CySEC regulated Forex brokers also invested in the country to siphon money away from unsuspecting investors, resulting in widespread scams that had far-reaching effects on mainland Europe as well as on investors around the globe. Increasing instances of broker fraud led to immense criticism from other European regulators, which resulted in reforms in the regulatory guidelines.

The New Face Of CySEC Regulation

Since 2010, CySEC has been changing its policies for regulation and have consistently been updating its regulatory guidelines to satisfy the MiFID derivative. 2012 saw a massive shift in the way CySEC operates, which instantly saw a lot of scam brokers as well as fraudulent financial companies slapped with hefty fines and permanent bans, which resulted in uplifting the overall reputation of the CySEC. Ever since CySEC has been on an upward trend and has been seen juggling between offering a comfortable business environment without compromising the quality of regulation or affecting the integrity of the financial markets.
Nowadays, CySEC is committed to the welfare of the investors and has introduced several measures to ensure that traders can enjoy peace of mind while investing their funds with CySEC Forex brokers. CySEC has introduced a minimum of €750,000 capital for Forex brokers, and brokers are also required to add their traders to the Investors Compensation Fund (ICF).
ICF is a concept similar to the FSCS offered by the FCA (UK), which covers a trader’s investment for up to €20,000 in the event a broker files for bankruptcy or if a broker is liquidated due to any other reasons. The ICF is a significant step in the evolution of CySEC into becoming a trusted broker, as investors can now enjoy more protection against unethical broker practices or market risks. Such a compensation scheme is only available if the broker fails, and ICF is in no way any insurance for the trading decisions made by the investor.

Staying Safe Against Broker Scams

CySEC regulates its member firms by requesting all types of audit reports and other financials to ensure that the brokers operate within the CySEC guidelines for a fair, open, and transparent marketplace. However, due to the relative ease of regulatory oversight, it is still common for CySEC regulated brokers to indulge in manipulative behavior. In such an event, the CySEC has instructed a detailed complaint resolution process that begins with the complainant contacting the broker directly with any issues and awaiting a response from the company representatives. Brokers should offer their traders with a fast and efficient complaint resolution; however, if a trader does not receive a satisfactory response, he can then contact the Financial Ombudsman service for arbitrage, or approach the court as a final resort.

Perform Adequate Research Before Choosing A CySEC Broker

CySEC regulated brokers are assigned a valid trade license and a unique tracking code that can help traders to perform extensive research about a broker before opening an account with the company. CySEC’s official website provides a rich platform where traders can go through multiple FX brokers and choose a broker that satisfies their requirements. Although the CySEC has a long way to go before reaching the levels of other established regulatory organizations, CySEC has indeed several industry firsts that make the agency a real innovator in the financial markets. As an investor, do your ground work before investing your fund with any broker, as ultimately, your due diligence will pay off in the long run.

What Is NFA ?

NFA, or the National Futures Association, is a US-based regulatory authority that oversees the operation and conduct of market participants that include Forex brokers, financial companies, fund managers, investors and other financial entities. NFA is the primary regulatory body in the US that is responsible for ensuring the integrity of the US capital markets through constant surveillance and monitoring of various financial activities. NFA also ensures that all firms registered under the NFA adhere to the most stringent regulatory protocols for protecting the investor against all types of financial crimes, fraud, and malpractice.

Why Are NFA Forex Brokers Considered To Be Highly Reliable?

The US has enforced several rules and guidelines to prevent all instances of investor abuse, which were quite rampant during the early part of the past decade. Due to improper regulatory directives, millions of investors lost billions of dollars to scam brokers, which resulted in the Forex market earning a bad reputation among most international financial markets. The modern NFA reforms are aimed at increasing market transparency and protecting an investor’s assets, thereby rendering complete safety against financial abuse. In fact, NFA is considered to be at the pinnacle of regulatory oversight and members are expected to adhere to the several strict conditions enforced by the US authorities. Here are a few regulatory guidelines that make NFA regulated brokers highly preferred by a majority of investors in the Forex market:

1. NFA regulation requires all member firms to hold their clients’ funds in segregated accounts, and should not use these assets towards covering the company’s operational costs or any other expenses.
2. All NFA regulated Forex brokers are required to hold at least $20,000,000 as their operating capital so as to ensure that the broker is capable of managing its client’s position in the interbank FX market. Comparatively, European regulatory agencies only stipulate a minimum of $1,000,000 in operating capital.
3. A significant amount of operating capital for NFA Forex brokers also ensures that a broker can meet multiple withdrawal requests from clients or compensate for any market volatility without accessing customer funds. A large number of non-regulated Forex brokers file for bankruptcy due to being unable to raise the funds required for any market eventuality. In this regard, NFA brokers are considered to be far more stable than non-regulated brokers or the ones regulated by other lesser-known regulatory agencies.
4. NFA directs every regulated member firm to submit weekly financial reports with detailed information on the account balances, the cost of operations, accurate representation of clients’ assets, and other financial data. The information provided is referenced with third party auditors to ensure the accuracy of the facts represented in these audit reports. Every broker should also submit annual audit reports in addition to the weekly updates.
5. The process of obtaining an NFA license is incredibly tedious and cost-intensive. A broker has to go through multiple regulatory procedures to achieve an NFA membership, which is too time-consuming and expensive for smaller players. Therefore, smaller brokers tend to base their operations out of countries with low-cost alternatives.
6. NFA regulated brokers should maintain a professional and friendly attitude towards all clients, and in the case of consumer complaints, it is the responsibility of the broker to initiate a quick resolution. If the dispute between a broker and a trader remain unresolved, either party may approach the NFA for mediation and arbitration. If everything else fails, the consumer can initiate legal proceedings against the broker.
7. The NFA severely punishes illegal activities and financial misdeeds through hefty fines, sanctions, and even through temporary or permanent bans.

Are NFA Forex Brokers Entirely Fool-Proof?

With the amount of regulatory oversight carried out by NFA regulation, traders can indeed enjoy a safe and secure trading environment. However, there are exceptions to the overall reliability of NFA brokers, as there have been countless instances where NFA regulated Forex brokers have indulged in malicious activities. The best thing about NFA is that they manage to find out a majority of such financial crimes, and slap heavy penalties on the miscreants to ensure that any other company does not attempt the repeat of the same in the future.

How Do I Find Whether A Broker Is NFA Regulated?

NFA provides an extensive online resource where one can find out all the desired information about a regulated NFA member firm. The official NFA website has all information related to the background of the company, its headquarters, key people, and all information that can help traders to make an informed choice. Of course, brokers also display their NFA regulatory status prominently on their website and usually provide a registered ID, which can then be used to track the status on the official NFA website.
NFA is also proactive when it comes to informing investors about the potential scams and broker alerts in case they suspect of any fraudulent dealings. NFA is quick to denounce any membership if an NFA regulated firm is consistently found to deal in sub-par Forex offerings. NFA serves as a benchmark for a majority of regulatory authorities from around the world and continues to be the most preferred authority for investors across the globe.