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Finance

Protect Yourself from Frauds and Scams

We know that forex is the world’s largest financial market. However, no matter how big it is, there is no central organization or agency that monitors what happens in the currency trading that occurs anywhere. Some people who know how forex works and the fact that no one oversees what happens tend to take advantage of that. They make fraudulent activities and scams that harm forex traders and interested forex traders. So, some countries could not just stand there and watch what happens next. Here are some countries that made action to protect traders and oversee what happens in the forex trading world, at least inside their jurisdictions:

  • The United States. The US has two largest regulatory agencies: The CFTC/ Commodities futures trade commission for complaints and NFA/ National futures association. CFTC protects people when they trade futures and commodities. On the other hand, NFA is more focused on futures.
  • The United Kingdom. The UK also has two regulatory agencies: The FCA/ Financial conduct authority and the PRA/ Prudential regulation authority. These two are replacements for the FSA or Financial services authority. FCA is not part of the government, and the funds are from the firms they regulate. They are the ones that answer to the treasury-appointed board. On the other hand, PRA is connected to the Bank of England. Supervision and regulation of banks, massive investment firms, credit unions, and insurers helps in promoting a healthy financial system for their people.
  • Denmark. In 1988, the Danish FSA/ started to oversee Denmark’s financial activities. To avoid market abuse and protect investor, FSA members are monitored.
  • Switzerland. As early as 1844, Switzerland already formed the FDF/ The federal department of finance to monitor their financials while the FINMA/ Swiss financial market supervisory authority (https://www.finma.ch/en/) regulates the securities dealers, banks, stock exchanges, and the like. Switzerland has another regulating body similar to FINMA formed in 1999: Association Romande des intermediares financiers. The only difference is that this body’s base is more on the French-speaking part of the country.
  • Hong Kong. Hong Kong decided that it needs a better regulating body in 1989, even when they already have two at the time. Because of that, the SFC/ Hong Kong Securities and Futures Commission was formed to replace the two that showed ineffectiveness. This single organization is responsible for overseeing all activities related to futures and securities in Hong Kong.
  • Australia. In 1991, a corporate regulator named ASIC/ Australian Securities and Investments Commission (https://asic.gov.au/) was founded in Australia. It is a regulatory body in charge of the companies, financial markets and service organizations, insurance, credit, and the like. They want to keep the market environment’s fairness.

Make sure that you are safe.

As of now, these are the countries that have strict regulatory bodies that oversee their traders and trading activities in their jurisdiction. We also placed the websites where you can reach them if ever you have inquiries or complaints. It does not matter if your country has a strict regulatory body or not. Always be vigilant.

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