The World’s Top 5 Financial & Broker Regulators

There are 110 active broker regulators, operating throughout the world. Their countries of origin encompass different legislations: USA, UK, Japan on one hand and Pakistan and Kenya on the other. We’ve prepared the list of Top 5 Broker Regulators for you.

What’s the purpose of financial regulators?

Financial/broker regulators are either government or independent bodies and committees that supervise activities of banks, brokers companies etc. I.e. they almost do “detective” work, filtering scammers and fraud.

Their goal is to make sure that everybody plays by the rules, so the clients of broker & financial firms won’t lose their money due to unscrupulous actions.

Top 5 Broker Regulators

The following agencies are listed among Top Regulators in numerous finance related media: Forbes, Investopedia and others. Most of them are state-controlled offices and they have to do their job in strict compliance with the law.

  1. MiFID (EU)

It is a regulatory directive issued by the European Union. Inspired by the 2008 global crisis, it is mandatory to follow for every fin. organization, working within the EU. Requirements to be observed include:

  • Segregating clients according to their financial knowledge.
  • Full disclosure of the trading conditions and terms.
  • Providing clear license info.
  • Deals must be executed immediately, after the client’s request etc.

The motto of MiFID is protection & transparency.

  1. NFA (US)

National Futures Association is a non-profit, independent regulator. It monitors futures industry, Forex etc. Its membership is obligatory for every company involved in futures trading, operating on the US soil.

Following the Customer Protection Rule, every NFA participant must have financial reserves big enough to pay its arrears to the clients in case of insolvency. They must be estimated and submitted as electronic reports to NFA every day.

  1. ASIC (AU)

ASIC ensures that:

  • Clients know of the broker’s terms, policies and activities.
  • Info on fin. companies is in public access.
  • Supervision & licensing are done properly.

The ASIC works under patronage of the Australia’s Parliamentary Secretary to the Treasurer.

  1. FSA (JAP)

FSA protects all investors, operating in Japan. Their policy is so meticulous that in 2018 they shut down a few cryptocurrencis, suspected as money-laundering tools. And now, apart for banks, insurance providers mortgage/Forex brokers, they also license crypto-exchangers.

  1. The Financial Commission (US)

FC is an independent organization, which resolves disputes between brokers and clients. Both traders/brokers can file complaints and after an investigation by FC, one of the sides will be obliged to provide some moral/financial compensation. In case a broker is a fraud, it gets permanently blacklisted.