A Quick Glance at Worldwide Forex Regulations

In 2019 it was found that the forex market turns over $6.6 trillion daily and is now valued at $2.409 quadrillion dollars.

Incredibly, this 2.5-times the size of the total global GDP, whilst it continues to grow as markets across the globe benefit from increasingly stringent regulatory measures.

In this post, we’ll take a peek at some of the regulatory measures in force the world’s biggest and most expansive forex markets. These include the following:

1. Europe

Europe remains the single most impressive and well-regulated forex markets anywhere in the world.

It’s certainly the leader in terms of the sheer number of individual markets welcoming forex brokers into a safe and transparent environment, which empowers traders and increases the volume spent each and every year.

Europe is also home to a number of national regulators, many of which have recently released specific guidelines for conducting business under their own unique jurisdictions. Additional client protection measures have been introduced in Spain, for example, whilst forex advertising and distribution have been banned in France and Belgium respectively.

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Europe is also home to world-renowned brokerage services like Oanda, which connects traders to markets in a safe and full-regulated environment.

2. The Americas

North America is also home to some of the biggest forex brokers in the world, whilst trading here is also highly-regimented and well regulated.

However, the high costs associated with offering approved services in North America’s forex market are incredibly high, and this creates a significant barrier to entry for many aspiring traders.

The market has also consolidated to an unusually high degree, with just a handful of companies currently permitted to service clients in the States.

In South America, Chile offers a forex trading license for firms approved by the Superintendencia de Valores y Seguros) SVS, with brokers in the region reporting impressive growth rates that’s indicative of a truly expansive marketplace.

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3. The Rest of the World – Japan and Africa

Elsewhere in the world, Japan remains one of the biggest retail forex markets in its own right. It also provides an isolated marketplace, and one that boasts regulated online brokerage groups targeting traders in neighbouring Asia-Pacific countries such as Australian and Hong Kong.

Then there’s South Africa, which is home to another deceptively advanced and developed market that generates huge volumes in forex trading every single year.

In this region, brokers can operate once they’ve received a forex license from the Financial Services Board (FSB) regulatory body, which is highly respected both at home and abroad.