There are a lot of forex brokers in different countries around the world, Ukraine included. Irrespective of the inefficacy of location in the forex market, traders know well enough to go for brokers in Ukraine (or anywhere in the world) who are qualified to handle their transactions. These qualifications are based on what regulatory bodies the broker belong to. Here are some of the regulatory bodies that foster the affairs of forex brokers in Ukraine.
BROKER REGULATORY BODIES IN UKRAINE
UCRFIN: Ukraine centre for OTC financial instruments and technologies development
International regulatory organizations
This is the Ukraine Centre for OTC Financial Instruments and Technologies Development. It is a commercial association that provides services for forex market operations. The main purpose of this regulatory body for forex brokers in Ukraine is to enhance and develop the Ukraine forex market by strengthening its legal framework and technological basis. They are also charged with the implementation of market behavior rules and common standards for participants. Brokers comply with UCRFIN to remove doubts in the minds of their clients about how legitimate they might be.
INTERNATIONALLY REGULATORY ORGANISATIONS:
Different countries have different regulatory bodies to guide local forex brokers, but there are also some bodies that are internationally recognized. Forex brokers in Ukraine that belong to this country are legitimate. Some of the international organizations are
Ernst and young (E&Y)
Financial Markets Association (FMA)
IMPORTANCE OF FOREX BROKER REGULATORY BODIES
Generally, the forex market is free for all to gain access to, and many yield to the temptation of taking advantage of this. There have been cases of forex broker scams in the past and there are still many more currently. There is really no confirmed way of restricting scammers from doing what they do, but traders can take precautions to ensure they do not fall prey. This can be done by researching properly about a broker before signing up to trade live with the broker. One of the most important things to do in the course of this search is to find out what regulatory body such broker belong to and confirm their membership with such bodies. Also, be sure that the body is internationally or at least nationally recognized.
Another really good importance of forex broker regulatory body is that it gives the traders a place to run to when he or she is having a problem with the broker. The brokers answer to the regulatory bodies and can resolve any such conflicts when the need arises.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.