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The importance of regulation in the Forex market

Some time ago, the Forex market appeared to be an uncontrolled environment. It often led to unconscious behavior. To prevent its development, regulators decided to tighten their grip on the major financial parties involved (banks and Forex brokers).

Today, numerous regulatory bodies provide their guidelines depending on the country and specific rules applied to financial operations in the region. Despite some differences in those guidelines, they all have one common feature. Any broker must obtain an official license. Besides, it must be registered in an underlying country to operate in accordance with relevant legislation.

The main idea is to build trust between traders and brokers. What’s more, regulations protect clients from fake service providers and trading scams.

More detailed information can be found at MTrading

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