Now there are more and more foreign exchange platforms entering the Chinese market, which makes people dazzled. Recently, investors often tell foreign exchange Tianye about the miserable experience of being hacked by the platform. The current situation of the industry is such that what can be done is to polish their eyes and know how to identify the compliance of the platform.

This tour will give you an in-depth understanding of global foreign exchange regulation, and understand the characteristics of global foreign exchange regulation and its acceptance in the domestic market.

In fact, there are many more regulators around the world than you might think, and by continent, Tianye King has selected the regulators of several major countries to reveal the regulatory perceptions of traders who are not usually understood.

Europe

Cyprus: Its CySEC is the other fully regulated body in Europe, more precisely on the Eurasian border, which is also one of the most popular license registration places for traders in the Chinese market. But because of its popularity, it also breeds a lot of fraud and financial violations! Ultimately, it reduced the country's efficiency in dealing with broker irregularities. CySEC has not penalized or warned the companies involved in the violations, and it has left them alone even for larger financial crimes. Which led to its notoriety!

UK: The UK FCA regulation is a well-known and trusted regulator that can protect the rights and interests of investors to a large extent, so it is also a name brand used by traders to attract traders.

America

Canada: In North America, there is also the IIROC, the Canadian investment industry regulator, which is also fully regulated. It is also one of the trusted regulators for traders, but just because it is a trusted regulator, do not trust the platform that has the regulator 100%, or choose carefully.

The United States: The regulatory license threshold in the United States is relatively high, so the traders we usually contact are less supervised by American regulators. The best regulator in the United States is the National Futures Association (NFA).

However, the funding requirements of the department are high, the application is difficult, and the management is relatively strict. It requires leverage to be capped at no more than 50:1, so basically only big traders with deep pockets are eligible to apply.

Belize: The Belize International Financial Services Commission IFSC is also the regulatory body in North America, and we often see some traders with this regulation. It should be noted that it is an offshore regulator, and the application and supervision of licenses are relatively loose.

Asia

Hong Kong, China: The SFC is a fully regulated body. As the world's third largest financial centre, its regulation is also trustworthy. However, in June 2019, the Hong Kong Securities and Futures Commission (SFC) issued new regulations, which basically make it illegal for unapproved institutions to conduct foreign exchange transactions in the mainland, and the accounts of mainland customers will be transferred to offshore supervision. Therefore, there are certain risks for Huiyou. If your trading platform uses a Hong Kong Securities and Futures Commission regulatory licence, you must know this.

Singapore: While Singapore has a well-established and rigorous regulatory environment, it is fully regulated by the Monetary Authority of Singapore. However, it should be noted that there are still many black platforms with Singapore licenses in the implementation of fraud!

Japan: The Financial Services Agency (FSA) is the primary regulator in Japan. Its regulatory measures mainly include inspection at any time, regular inspection, traders provide trading reports at the end of each month, etc., it is also very strict, so far the traders under its supervision are limited.

Southeast Asia: The current regulation in this region is offshore regulation, and Southeast Asia is also a market where scams are prevalent. For example, Purton & Ogilvy are black platforms in Indonesia. The foreign exchange regulation here is still immature and everyone needs to be vigilant.

Oceania

Australia: Australia is the most popular license registration place for traders in the domestic market after Cyprus, and ASIC is also a very strict and fully regulated body, so you can also see a lot of traders regulated by ASIC. However, from April 2019, ASIC announced that it would be illegal for any institution to engage in unauthorised foreign exchange margin trading in China.

This triggered turmoil as ASIC pulled out of the Chinese market. As of June 2019, about 13 Australian-licensed traders had exited the mainland Chinese market or moved to other regulators.

Although many traders have announced that ASIC supervision can still accept Chinese customers, if the ASIC official does not do other follow-up explanations, for domestic Huiyou, do not have too much expectation of the protection of this supervision. And in 2019, ASIC is proposing to adjust the foreign exchange leverage limit to 20:1. If you tend to be highly leveraged, you will not be regulated by it.

New Zealand: In addition to Australia, New Zealand's financial regulation is also very good. The two main regulatory bodies listed above are the New Zealand Financial Markets Authority (FMA) and the New Zealand Financial Services Enterprise (FSP), but please note that only the FMA is the Forex regulator and is fully regulated. These two institutions are easy to be exploited by the black platform, and I hope that you will pay attention to them.

Finally, note that many trading platforms have more than one regulatory license. The reason is that different regulators have restrictions on forex traders in different countries, and many regulators have leverage limits. This does not meet the requirements of traders who use high leverage. The broker platform you choose may be regulated by the UK FCA, but in reality your account may be regulated at the Seychelles and Belize levels.