Follow Us On:

Why broker regulation is important

The idea that one forex broker is just like every other broker is plain wrong - there are some good brokers and also bad brokers. There are many reasons why a trader has to carefully select a regulated broker. Regulated brokers are required to follow stringent laws e.g., segregation of investors' funds, maintenance of adequate capital etc. Traders' dealings with a regulated broker are subject to oversight and monitoring by a regulated body whose aim is to protect the interest of investors. These safeguard investors' funds at the hands of a regulated broker.

Likewise while selecting a regulated broker, the domicile of the broker is crucial because in advanced countries, the legal systems can be of help, should problems arise and become necessary to recover traders' funds. It is therefore every trader's responsibility to conduct some research to find a broker who not only fits his trading style but also has trader's best interest in mind when processing trades.

New Zealand Financial Markets Authority licensed PFD as a Derivatives Issuer as per the Financial Markets Conduct Act 2013.

The Financial Markets Authority (FMA) has established itself as an agency with a critical role in regulating capital markets and financial services in New Zealand and providing better outcomes for all New Zealanders.

NZ FMA: Promotes fair, efficient and transparent financial markets. Discover more about NZ FMA