Regulation and Licenses Why They are So Important?
Regulation is a key parameter for building your client’s trust as a respectable company they can work with. Besides, trust building regulations will assist you with obtaining respectable payment and banking solutions you will surely need. It is highly important for FX brokerage dealers for many of the same reasons it is important for other types of businesses.
Here is Why Licensing is Important:
- Protecting consumers: FX Brokerage dealers it is important that they are trustworthy and competent, after all they handle large sums of money on behalf of their clients.
- Licensing helps to ensure that these dealers meet certain standards of competency and professionalism, which helps protect consumers from fraudulent or incompetent dealers.
- Maintaining market integrity: FX Brokerage, dealers play a critical role in their respective markets, and it is important that they operate in a transparent and fair manner.
- Licensing helps ensure that these dealers follow appropriate rules and regulations, which can help maintain the integrity of the markets.
- Promoting trust: Licensing helps to build trust between consumers and these types of dealers. When consumers know that a dealer is licensed, they can be more confident that the dealer is competent and trustworthy.
- Ensuring compliance: Licensing helps ensure that these dealers comply with relevant laws and regulations.
- This is especially important in industries such as the forex one, where failure to comply with regulations can have serious consequences for both the dealer and its clients.
Here are some examples for different licenses
Class A Forex jurisdictions
- USA ( CFTC, NFA)
- Japan ( FSA Japan)
- Great Britain ( FCA)
- Australia ( ASIC)
Class B Forex jurisdictions
- Malta ( MFSA)
- Cyprus ( CySEC)
- New Zealand ( FSP)
- Mauritius ( FSC)
Class C Forex jurisdictions