Broker regulatory authorities

See jurisdictions regulator authority list where brokers are seeking licenses.

Major facts about all brokers

As a noun the word ‘broker’ means a dealer, agent related to anything, we also have called them as a person who negotiates, a trafficker. Overall, it means “a person who buys things and then sells them to others.” It is the kind of process of buying and selling. We have people in our society and in-country or in the world on the whole who are indulged in this profession which helps them to run their business. In addition, as a verb, it was means “any kind of arrangement or a form of settlement or order of the things.” On the other hand word “regulation” means, order, rule, mandate which we see the political parties to give in their assembly, any sort of procedure or requirement. So, on the whole, as a sentence, it means “an order, directive, or any contract relating anything that has to be maintained by the authority.” So it is like the planning of the regulations as well.

The objectives of financial regulators are usually:

market confidence – to maintain confidence in the financial system
financial stability – contributing to the protection and enhancement of stability of the financial system
consumer protection – securing the appropriate degree of protection for consumers.

Broker regulations

Broker regulations are the kind of regulation which has a great significance in it. Broker regulations are related to the state and authority. There are few methods or criteria while choosing a broker, one of which is the regulatory status. Regulatory status is known to be the process under which the regulatory body is governed. In general, it means to confirm a rule. It is any such specification, a policy, standard, or law, law of any order or statement as well.

Works or duty of a broker.

As every person whatever work he or she does, have some different duty or if not so then they have different rules and different things to follow. The duty of the broker is that he or she has to conduct the business they are doing, without any regulations. So by doing so, it acts or poses as a kind if a direct risk to the security of the clients. This security of the clients means the security of the clients’ money or wealth.

The purpose of broker regulations.

As such the brokers have some specific duties, and so the purpose for which the broker regulations is, is that this very approach is used to ensure or to make sure that all the necessary requirements a governance needs can be met without any stop or without any sort of difficulty or trouble . This is a kind known as the unnecessary duplication of efforts and hard work and the very activity done from resources.

Regulator list for forex broker

Another term which has been derived from broker regulations is the regulatory body. The regulatory body is also known as a regulatory agency. Regulatory body or regulatory agency is a public authority or a public right, or any government agency which is responsible for running or exercising the autonomous authority, which means having the right and the power to make your own decisions and your own ideas to implement. It is that it is from not dependent upon authorities; rather it is independent of and free from the branches or from any sort of the army of any authority. Army means any group or any member of the authority.

Currency Broker Regulation Grades – Broker Licenses

SO where is problem
– Most of (more than 90% of all brokers companies) Forex broker companies start WITHOUT licenses like St Vincent incorporation, or in Seychelles, Nevis or other offshore jurisdiction.
regulation body grades

A-Grade brokers regulation

This is strong reputation brokers. This means high capital requirements, rigorous trading rules, laborious and high reporting standards and tougher (expensive) penalties for non-compliance. USA (Commodity Futures Trading Commission CFTC, NFA) – Japan (FSA Japan) – United Kingdom ( Financial Conduct Authority FCA) – Australia (Australian Securities and Investments Commission ASIC) – Singapore (Monetary Authority of Singapore MAS) – Hong Kong ( Securities and Futures Commission SFC) – Switzerland (Financial Services and Markets Authority FSMA) – Germany (Federal Financial Supervisory Authority BaFIN)

B-Grade brokers regulation

Capital requirements, physical presence rules, simplified reporting standards, fit and proper tests and lower tax rates. – The Bahamas (Securities Commission of the Bahamas SCB) – Cyprus (Cyprus Securities and Exchange Commission CySEC) – Czech Republic (Czech National Bank CNB) – Latvia (FCMC) – Malta ( Malta Financial Services Authority (MFSA)) – New Zealand (Financial Markets Authority New Zealand FMA) – South Africa ( Financial Services Board FSB) – United Arab Emirates Dubai (Dubai Financial Services Authority DFSA)

C-Grade brokers regulation

Little or no regulation compared to the other grades. – Belize (International Financial Services Commission IFSC) – British Virgin Islands (British Virgin Islands Financial Services Commission BVI FSC) – Cayman Islands (Monetary, Regulatory and Advisory Body of the Cayman Islands CIMA CIMA) – Mauritius (Financial Services Commission – Mauritius FSC) – Saint Kitts and Nevis (Financial Services Regulatory Commission – St. Kitts) – Seychelles (Seychelles Financial Services Authority SFSA) – Vanuatu (Vanuatu Financial Services Commission VFSC)

You can see whole list for each country in List of financial regulatory authorities by country.

Brokers work on the Lower standard.

Usually, it so happens that the brokers or so-called as the workers, they work for the finance or finances. They are distracting registered with the industry related to money, or finance that is financial industry. They are registered to it and work for you it.

Serving process of the brokers.

As we know that the brokers serve and work for the finances, so it includes people for whom the work of broker regulations is done. Brokers deal with the clients. They efficiently do their work and give the best of their ability that the clients will not do not have any point to complain.

Suitability rule.

Suitability rule is the rule or the kind of work which includes in serving the clients. And the conduct of the brokers must be based on this rule. It is, on the whole, is a requirement or stated requirement that has been implied by the regulatory body. In this processor stability rule, the brokers give the advice related to the business or investment he or she has done or interested in. It will ensure the clients that the investment they have made is going to help or benefit them or not. This way the client will be satisfied that they are making the right decision or not through the recommendations made to them.

What is Regulator body goal ?

Let we see examples:

CFTC Mission Statements

The mission of the Commodity Futures Trading Commission (CFTC) is to foster open, transparent, competitive, and financially sound markets.


Our aim is to regulate in a way that adds the most benefit to those who use financial services. Our Mission explains what we prioritise and why. It describes the framework we use to make decisions, the reasoning behind our work and how we choose the best tools for the job.


Protect consumers – to secure appropriate protection for consumers.
Integrity – to protect and enhance the integrity of the UK financial system
Promote competition – to promote effective competition in consumers’ interests


The ASIC Act requires us to:

maintain, facilitate and improve the performance of the financial system and entities in it
promote confident and informed participation by investors and consumers in the financial system
administer the law effectively and with minimal procedural requirements
enforce and give effect to the law
receive, process and store, efficiently and quickly, information that is given to us
make information about companies and other bodies available to the public as soon as practicable
take whatever action we can, and which is necessary, to enforce and give effect to the law.

This is example of main roles that Financial regulatory bodies have.