The role of regulations to Exness
Table of Contents
With the development of technology as the internet develops as it is today, the foreign exchange transactions become popular with every customs in the world. Just with 1 phone or laptop have internet connection, you can open accounts and trade through brokers around the world
For example, a trader from Asia, can open a trading account with an exchange located in Europe, by providing his personal information, this is easy.
Small transactions in the foreign exchange market are growing strong and more popular. In addition, fraudulent methods that take advantage of customers’ ignorance to conduct financial violations. There are a lot of foreign exchange trading floors do financial violations like scams, high price, secret fee, high risk is manifested under a high-leverage of leverage or other behaviors. Even serious acts such as those who operate broker’s websites can close unexpectedly and stealthily without having to notify traders in advance. So we need some regulations are set by the competent authorities are eligible to ensure that violations or frauds are prevented. The purpose of the regulations is to protect independent traders and to ensure fair practices to ensure the interests of our customers. Merchants from anywhere clearly want security and safety.
And Exness is operated under FCA regulations to ensure peace of mind and fairness for customers when coming to Exness
So what is FCA and how secured is it?
FCA and Exness
FCA (UK) (Financial Conduct Authority) – UK Financial Control Authority
FCA is the most prestigious management company in the world today, other forex brokers, FCA also licenses and regulates the operation of other types of companies and financial services.Officially established on April 1st, 2013, FCA and central bank of England and management agency, perform prudentially the task of managing and regulating financial markets in this country.
The UK is one of the few countries to be rated as having excellent financial management systems, preventing fraud and financial fraud, especially in the 2008 global crisis. Confirming management capabilities from FCA, raising its reliability level to a leading position in the world.
To become a member and get a license of FCA UK, forex broker must maintain a minimum of £ 1 million in operating capital. This is quite a high level compared to other EU countries. In addition, FCA’s statutory compensation for customers is up to a maximum of £ 50,000.
Beside, the Forex floors must accept some different conditions about human resources, technology and other things
When opening account from the Forex’s floor that licensed by FCA, the investor will receive a compensation of up to £ 85,000 in the event of a successful appeal or forex declaration of bankruptcy.
Some reputable forex trading platforms are licensed by FCA such as Exness, FxPro, XTB, XM …
Authority of FCA
FCA’s process control to brokers is very rigid. In addition to providing monthly, quarterly and annual financial reports, FCA also requires brokers to send their daily capital adequacy report to this agency, requesting to separate investors’ money from the fund. of the company and must be deposited in reputable banks. Another policy of safeguarding an investor’s account is to require licensed brokers to provide a low leverage for all investor transactions.
If the trader has a dispute with a forex broker who registers for FCA, the trader may use the service of a financial inspector to resolve the case.