How-Regulation-and-Compliance-protect-Forex-traders

The numerous probes that have rocked the financial sector recently have not made good headlines, there’s the banking scandal, LIBOR scandal, the pay day lending scandal, financial advice scandal and whilst they are all very different and cannot be placed under the same umbrella, to the average person they are all seen as something to do with finance and fall into the same category.

Even the FX probe which has been ongoing for over a year now, but has only scratched the surface, will have a negative impact on the image of financial services as a whole.

So regulation matters and it’s the job of compliance to not only help prevent financial misconduct, but promote and protect responsible business practices in the financial services industry.

Retail brokers that provide clients with an incredibly deep pool of FX liquidity, acting as the risk-less principle for all the trades, they not only need to be strictly compliant in providing the services to the end users, but brokers rely on their institutional partners maintaining commercial liquidity flows into the systems so that traders benefit from the tightest spreads possible.

It is not only their aim to provide traders, whether they are retail or institutional, with the best service possible, but to abide by the rules set out by regulators in order to afford the best possible protection and work with them to promote best practice.

The recent consultation being undertaken by the UK FCA* in respect of how regulated firms use social media is a very welcome step towards ensuring they are promoting the products and services responsibly.

The Financial Conduct Authority* in UK.

Whilst some social media vehicles restrict what you can do, for example the character limitations on Twitter, firms have to adapt to ensure they are being compliant.

A ‘tweet’ or post on in most circumstances will be viewed as a financial promotion and therefore must be treated as such with the relevant warnings and disclaimers, regardless of what character limitations there might be.

List of Regulated Forex Brokers