The Financial Conduct Authority (FCA) in the UK is one of the most reputable regulatory watchdogs in the world for regulating forex brokers and other financial entities. Forex traders would prefer to open trading accounts from FCA regulated forex brokers because of the watchdog’s stringent regulatory laws, protection of client funds and companies insolvency compensation rules etc. After Brexit comes into force, FCA license is only available for UK traders, not for EU clients. Forex companies must get a EU passport if they want to reach EU clients.

Swiss Financial Market Supervisory Authority (FINMA) is the most respected regulatory organization in Europe that has managed to reinforce a significant amount of trust among wealthy forex traders and investors from all over the world. FINMA has been granted exclusive powers by the Swiss Government to act as a regulatory watchdog for different types of financial firms that include stock exchanges, stock brokers, forex brokers, banks, insurance companies, securities dealers, fund managers, and any other kind of entity that deals in the financial markets. FINMA’s regulatory framework is designed in such a way that only established and mainstream forex brokers can offer brokerage services under the FINMA license. Therefore, FINMA forex brokers are required by law to be registered as banks, which require a higher amount of operating capital and more restrictions on how they function in the markets. FINMA regulated brokers are also expected to follow the best practices in brokerage services that are devoid of any manipulation or fraudulent practices.

The US regulatory framework is deemed as one of the world’s strictest. US residents and citizens are only permitted to operate with CFTC and NFA regulated foreign exchange brokerages. Firms and individuals, who do not possess the relevant NFA and CFTC regulation, are not allowed to solicit or approach US citizens. This is why many websites (this site included) feature a warning to US visitors, alerting them of the fact that the sites content is not directed towards US residents. The National Futures Association(NFA) is the industrywide, self-regulatory organization for the U.S. derivatives industry, providing innovative and effective regulatory programs. The NFA also works with the Commodity Futures Trading Commission (CFTC). NFA strives every day to safeguard the integrity of the derivatives markets, protect investors and ensure Members meet their regulatory responsibilities.