There are many factors that make a Forex broker reputable, reliable and proper to sing in regardless you are a beginner or high punter in the field. Thus, the broker`s bonus system or its customer support services are main elements we usually check out, when we read a Forex website review. On the other side, the wise trader should pay attention on something else, too – the regulation. As a matter of fact, the proper and strong regulation is the key criteria to call a Forex broker trustworthy. Keep in mind that the UK Forex regulation particularly is considered to be one of the best across the entire world and web. It is really reputable and well-organized, so if you a trader, who prefers the UK Forex platforms, you are lucky to receive such a risk-free and safe trading environment. But let`s talk about the UK Forex regulation in details now.
Potential Threats UK Forex Regulation Prevents
The UK Forex regulation aims to protect both – the large community of traders from all over the world regardless their nationality, but in conduction to the restrictions of particular citizens for joining a foreign currency exchange platform, as well as the platform, itself. There are many potential threats that the Forex market can face and the traders can be affected. Check out the main of them and find out why exactly the regulation is established and put into force for most of the UK trading brokers:
- Abuse towards personal data that is required to be input, while making a registration and opening an account to trade in a particulate UK Forex platform. This category includes all the personal information – including names, debit or credit card numbers and etc.
- Fraud with personal money of the trader that are either only invested as deposits, or won as winnings during the Forex experience. The financial transactions must be regulated and controlled by all means and here is where the regulation works at most.
- Cases, when the client obtain a worse price that it could obtain – usually this happens when the trader receives or has information about other client`s pending orders.
- Trading collusions for gleaning information about pending client`s orders.
- Cases, when the pricing benchmarks, which are meant y real executed trading operations during a defined window – for example WM/Reuters rate 60-second window.
- Mainly in UK, the concern is to tackle the potential threats and abuse cases with manipulations of all kinds around the Forex UK online market and activity.
What are the Regulation Agencies for UK Forex brokers?
The properly regulated UK Forex brokers have particular and strict programs for regulation and customer protection. Most of these programs are devoted to obeying rules and terms that are established by popular regulation agencies across in UK. See them and find out what exactly they do right away:
- Financial Conduct Authority Commission – Known as FCA among the trading community and the Forex broker reviews, this commission is mainly responsible for the proper regulation of the UK financial services industry. The commission was established in 2012 year and since then it is an independent agency that keeps the personal money and data at safe place. What is curious about the FCA is that it works perfectly well thanks to the strategy to set apart the trading community`s funds from the funds that each broker holds as a company.
- Financial Services Compensation Scheme – Well-known as FSCS, this is an additional statutory compensator in UK and here is where the final arguments and disputes are usually located and solved. The scheme offers a fund of 50 000 GBP in case of any issue or loss that the customer has suffered from.
- European Union – As a regulator across all the country members, the EU has its own regulation methods for the financial services and gambling industry in Great Britain. Keep in mind that EU and FSC work together and in collaboration, but the EU measures are more general since they are given for all the European Forex brokers, but not to UK-based only.
The UK Forex regulation framework is up to know comparatively optimal and efficient. The issues for this moment were mostly due to technical mistakes, which have been solved. Though, each fraud, if such appears was up to now solved, as well.