Forex trading has become very popular in the past few years. There are many reasons for it, one of the biggest being the fact that Forex trading has become accessible to everyone around the world thanks to the development of the internet. However, because of this, scammers found a way to lie to people and get their money illegally. To overcome these challenges, many countries decided to come up with different types of regulatory agencies, that would ensure the safety of Forex traders.
Regulatory framework around the world is very different, each country has its own stand when it comes to FX trading. Some of them are more successful than the others but in the end, those who take regulations of Forex trading very seriously seem to be the safest places to trade.
As of today, you can start trading Forex in many different parts of the world, there are new FX brokers emerging every day and each of them seems to be better than the others. However, the market seems to be very different around the world, and to help you understand everything about the field in your region, we have created special pages dedicated to Forex trading around the world.
What are the best FX brokers?
Thanks to the internet, Forex trading has developed a lot in recent years. As of today, many people have access to this very diverse market, however, it seems to be a little hard to find a perfect FX broker that fits all of your needs. This is especially hard for those who are new to the market and don’t know much about it. To help you out, we did very intensive research and finally were able to come up with a list of some of the best Forex brokers on the market that you can check out right now!
AvaTrade
Minimum deposit
100 USD
Licences
ASIC , FSC, FSCA, FSA, FFAJ, FSRA
Maximum leverage
400:1
Platforms
MT4, MT5
HotForex
Minimum deposit
5 USD
Licences
FCA, FSA, DFSA, FSCA
Maximum leverage
1:1000
Platforms
MT5, MT4, WebTrader
Plus500
Minimum deposit
$100
Licences
FCA, ASIC, CySEC, FSCA, FMA, MAS
Maximum leverage
1:30
Platforms
WebTrader
IQ Option
Minimum deposit
$10
Licences
CySEC, FSA
Maximum leverage
1:30
Platforms
Web
How does Forex trading work around the world?
As we have already said, the regulatory framework of Forex trading is very different in different parts of the world. Because of that, it is very important to seek accurate information about Forex trading in your region for the best Forex trading experience.
FX trading in Europe
When it comes to Forex trading, Europe is known to be one of the safest places for investment. European regulatory frameworks are on another level, ensuring the absolute safety and security of investors in the region. A great thing about the regulations in the region is that no matter in which country a certain FX broker is registered, it has the right to offer its services to every citizen of the region.
This happens because of the Markets in Financial Instruments Directive 2004, better known as MiFID. With this, the general regulatory framework is the same all over Europe, however, there are many regulatory agencies in the region which means that the work that these agencies do differ a lot.
For example, compared to other regulatory bodies, CySEC is known to be less harsh when it comes to regulations. Because of this, many Forex brokers in the region prefer to get licensed with this regulator and as of today, CySEC stands to be one of the most popular regulatory agencies in the region and around the world as well.
Asia
Asia stands to be one of the most diverse regions when it comes to Forex trading. The regulations in different countries of the region are very different from one another, and unlike Europe, Asian FX brokers can not offer their services region-wide with just one license.
One of the hardest countries to get licensed in Asia stands to be China. Because of the regulatory framework that the country follows, it is almost impossible for FX brokers that are not registered in the country to offer their services. Because of the very hard and tiring process of registration, many brokers do not even try to get licensed in China.
Because the financial sector is developing so fast in the region, it creates a perfect place for Forex trading. The field has developed a lot in recent years in Asia, and it seems to be only the beginning.
Africa
This is one of those regions that some people think will not have a successful FX trading market. In reality, however, Africa has managed to develop this field a lot recently. This mostly happened thanks to countries like South Africa, where the regulatory framework works perfectly for FX trading.
Middle East
With the economic boom of the past years, the Middle East’s FX trading market has become very successful. In the region, in most cases, the main regulatory body of the countries are the Central Banks. This is the case of the United Arab Emirates as well. Although the field still has a very long way to go in the region, because of the popularity that it has, it seems to have the ability to have a very successful future.
North America
With the USA and Canada, North America stands to be one of the top destinations for Forex traders. However, the thing about these countries is that the fields very heavily regulated, especially in the USA. If any broker wishes to start functioning in the country, they will have to go through a very long and hard process. They will have to have huge amounts of money as their capital, they will have to have an office in the country, and many other demands that are very hard to comply with.
Compared to the USA, Canada has lighter regulations, however, they still manage to keep the investors safe. Also, these regulatory frameworks create a very safe and secure environment for local traders in the countries, and we would recommend starting trading in the USA since the country offers every tool for the safety of the Forex traders.
Oceania
Oceania has become one of the top regions for Forex trading in recent years. The regulatory bodies of the region are very well-known and trusted around the world. For example, the main regulatory agency of Australia, Australian Securities and Investments Commission, better known as simply ASIC, takes care of much of the region’s FX trading market.
With such a huge influence, ASIC takes its job very seriously and makes sure that every single investor in the region is safe from scams.
How to stay safe while trading Forex?
We have said it many times that you should only trust the FX brokers that are authorized by official regulatory bodies. So, while looking for the best Forex broker, make sure that you are choosing the one that is authorized by an official regulatory body. In addition, make sure to learn as much about the world of Forex as you can before you start trading. This is a very risky market and you need to be sure that you understand everything about it well.
