Question
Who regulates forex?
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3rd Nov 2009 by JonB
The vast majority of FOREX trades are unregulated. There is no single entity that presides over the entire industry. In FOREX there is no central exchange, but rather a multitude of different transactions taking place all around the world. Of course, these transaction usually produce similar prices as traders would quickly take advantage of any price disconnect between the various markets.
Some products, like currency futures, are regulated by the CFTC. But for the most part, regulation is little or non existent. This has led to some problems. It's been discovered that often brokers are taking the other side of the trades they are brokering, effectively ripping off their own customers. If you decide to get into FOREX trading, be sure to use a reputable broker.
The vast majority of FOREX trades are unregulated. There is no single entity that presides over the entire industry. In FOREX there is no central exchange, but rather a multitude of different transactions taking place all around the world. Of course, these transaction usually produce similar prices as traders would quickly take advantage of any price disconnect between the various markets.
Some products, like currency futures, are regulated by the CFTC. But for the most part, regulation is little or non existent. This has led to some problems. It's been discovered that often brokers are taking the other side of the trades they are brokering, effectively ripping off their own customers. If you decide to get into FOREX trading, be sure to use a reputable broker.
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1st Nov 2009 In Forex
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Subjects: forex,
forex regulation,