- Guide to Forex Regulations in the US
- Finding a Regulated Broker
- Exchange Control Regulations in Thailand
Such proceeds may, at the option of said residents, be sold for pesos, retained or deposited in foreign currency accounts, whether in the Philippines or abroad. Resident shall refer to: an individual citizen of the Philippines residing therein; or an individual who is not a citizen of the Philippines but is permanently residing 7 therein; or a corporation or other juridical person organized under the laws of the Philippines; or a branch, subsidiary, affiliate, extension office or any other unit of corporations or juridical persons which are organized under the laws of any country and operating in the Philippines, except OBUs.
Non-resident shall refer to an individual, a corporation or other juridical person not included in the definition of resident. Local Currency.
Guide to Forex Regulations in the US
A person may import or export, or bring with him into or take out of the country, or electronically transfer, legal tender Philippine notes and coins, checks, money order and other bills of exchange drawn in pesos against banks operating in the Philippines in an amount not exceeding PHP50, without prior authorization by the BSP. Amounts in excess of said limit shall require prior written authorization from the BSP. Foreign Currency. Any person, who brings into or takes out of the Philippines foreign currency, as well as other foreign currency-denominated bearer monetary instruments, in excess of USD10, or its equivalent is required to declare the same in writing and to furnish information on the source and purpose of the transport of such currency or monetary instrument Annex K.
Philippine Sports Commission and its delegations or representatives to any international sports convention, conference and meeting, and athletes, coaches and other officials to any international competition under Republic Act R. Foreign currency loans obtained from banks operating in the Philippines shall also be governed by the provisions of Part Three, Chapter I of this Manual. Except as provided in this Manual, gold and gold-bearing metals may be bought and sold without specific approval of the BSP. All other forms or types of gold may, at the option of the owner or producer thereof and with the consent of the BSP, be sold and delivered to the BSP.
Worse, should something happen, there is often no way to take legal action against them. Selecting the right broker starts by checking that it is truly licensed, regulated and authorized where you live. Typically, Forex brokers are required to deal with top-tier financial institutions and liquidity providers, as well as to keep their client funds in separate accounts.
FX brokers also need to meet certain other criteria, such as capital and fiscal requirements. One of the most attractive regions in Europe to set up a forex company is Cyprus, due to its advantageous fiscal and tax structure. So, if a financial company decides to set up shop in Cyprus, it will be registered, licensed, authorized and operate under the Cyprus Securities and Exchanged Commission CySEC , which monitors the financial markets with the support of the European regulatory authorities and the European Commission to protect traders.
But this company would also be able to legally offer its financial services in other countries in the EU and the EEA, and it will be registered in every local European regulatory body. Brokers following MiFID, the European Markets in financial instruments directive implemented in by the European Commission, must follow several rules:. In light of these issues, the European Commission considered a revision of this regulation.
The direction also wants to work for better investor protection by ensuring that consumers have a clear understanding of the financial products in which they invest.
Finding a Regulated Broker
It is, therefore, a question of selling the right financial product to the right customer. To do this, a broker usually asks future clients a few questions about their personal and financial situations, but also about their knowledge of the financial markets and trading. Brokers must also comply with procedures to be sure they know their clients and where the money used for trading comes from — Know Your Customer KYC and Anti-money laundering AML procedures. To sum up, this new directive is supposed to enhance the transparency of regulated platforms, as well as of the financial markets, improving trader protection through better business conduct.
Because of high leverage and margin trading, retail investors have lost a lot of money over the years on the Forex market trading CFDs. It alone processes In order to prevent broker scams, financial malpractice or other types of fraud affecting traders, there are 2 important financial regulatory bodies in the UK, the FCA and the PRA. This national regulatory body ensures consumer protection while guaranteeing the integrity of the financial markets in the UK.
The Prudential Regulation Authority PRA , which belongs to the Bank of England, helps in developing ethical and professional standards to protect the financial firms it is responsible for, so that in the case of a failing financial firm, there is no real impact to the financial markets or the taxpayers. To be an FCA Forex broker , a broker should adhere to strict guidelines, such as:. With Under the CEA, only certain regulated entities may be counterparties to these off-exchange trades with retail customers.
All other off-exchange futures and options transactions with U. A firm may not act as a counterparty, or offer to act as a counterparty, to any forex transaction unless the firm is one of the regulated entities listed in the CEA. These entities authorized counterparties are:. No Member may be approved as a forex firm unless at least one of its principals is registered as an AP and approved as a forex AP. Except for otherwise regulated U. A person exercising trading authority over a customer's account may not receive or hold the customer's funds. See Exemptions available to CPOs.
All Members that engage in forex activities with customers are subject to NFA's forex requirements, although some of those requirements apply only to forex dealer members FDMs. A Member is an FDM if it acts as counterparty to or offers to act as counterparty to at least one customer. See NFA Bylaw Members that engage in forex activities with customers but do not act as counterparties are subject to various anti-fraud, ethical conduct, and supervision requirements if they solicit customers, introduce customers to a counterparty or manage accounts on behalf of customers.
Additionally, Members that manage forex accounts on behalf of customers or offer pools that trade forex must provide prospective clients and pool participants with a disclosure document and file it with NFA prior to use. This disclosure document must include the disclosure language proscribed by the CFTC. Additionally, any trading program or pool that includes forex trading must provide certain disclosures and provide periodic monthly or quarterly account statements and an annual report to the pool participants.
Members or their Associates are required to obtain certain personal and financial information from a customer. At a minimum, Members or their Associates must obtain the customer's true name, address, principal occupation or business, and previous investment, futures trading and forex trading experience. For customers who are individuals, the Member or Associate must obtain the customer's net worth or net assets and current estimated annual income or the previous year's annual income.
Based on this information, Members or their Associates must determine the appropriate risk disclosure to provide the customer. At a minimum, FDMs and IBs must provide retail customers with understandable and timely written risk disclosure on essential features and risks of forex trading prior to opening the account.
Exchange Control Regulations in Thailand
In addition, immediately following the prescribed disclosure, the risk disclosure statement must also include: 1 the total number of non-discretionary retail forex customer accounts maintained by the FDM, 2 the percentage of such accounts that were profitable in the quarter and 3 the percentage of such accounts that were not profitable during the quarter.
IBs are required to provide this information for the FDM to whom they are introducing the account. Members are required to obtain a signed and dated acknowledgment from the retail customer that the customer received and understood the disclosure statement prior to opening the account. Members must update this disclosure prior to entering into new forex transactions with current customers if failing to update the information would make it misleading.
- Is Forex Legit? Who regulates Forex?.
- td ameritrade forex demo account;
- forex technine analize.
- Why Register with Mondaq!
- quantitative trading strategies forex?
Members or their Associates may decide that additional risk disclosure for a particular customer is appropriate. For example, if a customer does not have experience trading forex, the Member or Associate must determine what additional information the customer needs to make an informed decision on whether to enter into forex transactions. In some circumstances e.
- What is Forex Regulation??
- Associated Persons?
- forex lot converter.
- e forex shop?
- Regulation Protection & Benefits.
- FX Trading Regulation - Forex Rules and Regulations - Forex Education;
- forex indicator parabolic sar;
- compare options trading commissions.
- forex trading reviews 2016?
- cashback forex?
A Member, however, is not required to reject the account if a customer, after receiving the additional disclosure, still insists on trading forex. Members and Associates, however, are prohibited from making individualized recommendations to any customer for which the Member or Associate has or should have advised that forex trading is too risky for that customer. NFA does not require Members to provide their Associates with any grid-like formula to identify those customers who require additional risk disclosure. Your firm should, however, be able to articulate the general factors its Associates consider when deciding whether to give additional risk disclosure.
Each Member must make a record containing the customer information obtained. If the customer declines to provide the required information, the Member or Associate must make a record that the customer declined. A record does not need to be made in the case of a non-U. Members must keep copies of all information records for the period of time set forth in CFTC Regulation 1. For all active customers who are individuals, Members who act as the counterparty are required to contact the customer annually to verify that the information remains materially accurate and provide the customer with the opportunity to update the information.
If the customer notifies the Member who is acting as the counterparty of any material changes to the information, the Member must determine whether the Member must provide the customer with additional risk disclosure based on the changed information. Members should adopt and enforce written procedures regarding communications with the public. For example, you may not represent that forex funds deposited with a Member are "segregated" or given special protection under the bankruptcy laws. If an FDM or an IB represents that its services are commission free, it must prominently disclose how it is compensated in near proximity to this representation.
Additionally, an FDM may not represent that a customer will have direct access to the interbank market since the FDM is actually the counterparty to every customer's forex transition. Similarly, no FDM that utilizes straight-through processing can suggest that they are not the counterparty to a customer's trade. Additionally, an FDM or an IB may not represent that it offers "no-slippage" or can guarantee fills unless it can demonstrate that all orders on its platform have been executed at the price initially quoted when the order was placed on the platform and it does not have the authority to adjust customer accounts so as to have the effect of changing the price at which the order was executed.
In other words, if an FDM "re-quotes" prices or has the contractual right to make adjustments that directly or indirectly change the price of an order after it is executed, it cannot claim to have no slippage. Any reference to hypothetical performance results that could have been achieved using your trading system must comply with NFA Compliance Rule c and the related Interpretive Notice as if the performance results were for on-exchange transactions.
Finally, promotional materials may never guarantee against loss. Members remain responsible for meeting their regulatory obligations in situations where they utilize or promote forex trading systems developed by third parties. Specifically, an FDM has direct responsibility for misleading promotional material if the FDM prepares or distributes it; has agency responsibility if the trading system developer is an agent of the FDM under established principles of agency law; and has supervisory responsibility if the Member fails to supervise its own employees in its activities with a third-party system developer.
Members must maintain all promotional material for five years from the date of last use and must keep it readily accessible for the first two years. Furthermore, Members must maintain supporting documentation for all statements, claims and performance results included in promotional materials. FDMs, and their Associates, may not exercise trading authority over a customer account for which the FDM is, or is offering to be the counterparty.
An FDM may not carry offsetting positions in a customer account and must offset the positions on a first-in, first-out basis. A customer may, however, direct the FDM to offset same-size transactions even if there are older transactions of a different size, but the transaction must be offset against the oldest transaction of that size.
An FDM is prohibited from directly or indirectly canceling or adjusting the price of executed customer orders, with two exceptions.
The first exception is where the adjustment is done to settle a customer complaint in the favor of the customer. An FDM may also adjust orders even in the absence of individual customer complaints if the customer were adversely affected by a technical problem with the Member's trading platform.
However, an FDM may not adjust prices on customer orders that benefitted from the error and may not cherry-pick which account to adjust. The second exception is where the FDM uses exclusively "straight-through processing" such that it automatically executes without human intervention and without exception an offsetting position to a customer order with another counterparty prior to providing an execution to the customer order.
An FDM that adjusts an executed customer order based on an adjustment by a counterparty must provide notice to the affected customer within fifteen minutes of the customer order having been executed.