✔️ Information reviewed and updated in November 2023 by Eduardo López
What is a regulator? How to choose a broker has a lot to do with understanding the concept of a regulator and knowing the best regulators, it is information that as an investor or trader we must contemplate and always take into account when choosing or not an investment company.
First of all, what is a broker and what is a trader? In a few words, a broker is an intermediary company that is responsible for providing counterpart to the so-called traders (investors) or merchants, it allows investors to invest in markets such as Forex or CFDs.
A regulator is, without going too far, an organism that is in charge of monitoring that the "rules of the game" are followed between brokers and traders. (and the different markets). A regulator controls the broker and its behavior, it could be said that it protects clients. Now, there are many types of regulators, and a regulator from, for example, England, will not be the same as a regulator from the Cayman Islands. Although tax havens such as the Cayman Islands may be associated with higher profitability or lower charges or taxes, at brokersdeforexconfiables.com we believe that investing with a broker that has a "lax" regulation, such as the Cayman Islands or investing with a broker that directly, not having regulation is extremely risky.
As we well mentioned, a broker with a "bad" regulation is a broker that can act dishonestly with investors or directly against investors or, that is why we only recommend regulated brokers with regulators that we consider to be "serious" regulators. . Below we will leave a list of regulators that we consider to be serious regulators.
- AMF (regulator of France)
- AMF (Canadian regulator)
- BaFin (German regulator)
- CNMV (regulator of Spain)
- CMVM (Portuguese regulator)
- CONSOB (regulator of Italy)
- FCA (UK regulator)
- finanstilsynet (Danish regulator)
- FMA (Austrian regulator)
- SEC (US regulator)
There are many more regulators and in general rules the vast majority of countries have a regulator that regulates financial entities and this type of activity. But we consider only the aforementioned as safe.
Do you have any doubt or comment? You can always leave us a comment with any problem or question you have, we are happy to help you.