The term financial regulation is often defined as supervision or regulation by the financial institutions, which follow a proper guideline and norm with a motto to follow and uphold the truthfulness of financial system of an organization or a country or a body. A body is formed to maintain these financial issues, which is often called governing body of finance.
Best Regulated Brokers
There are many regulated binary brokers out there but these are the ones that stand out, because they offer the quality that any trader would expect. If you are new to binary trading or an experienced trader have a look at these regulated brokers listed below – as they are (by far) the ones with the best reputation.
Why trade with a regulated broker?
There are clear pros to trading with a regulated binary options broker such as:
- Client funds need to be segregated from company funds
- Sufficient financial resources (established operating company)
- No criminal records of all directors and shareholders
- Must be fully underwritten/Insured
- There is a process to forward complaints about brokers from traders
|License||Type||Jurisdiction||Regulator||Client Fund Segregation||Complaints|
|NZ FSP||Financial||New Zealand||New Zealand||Yes||business.govt.nz|
|CySEC||Financial||Europe / UK||Cyprus||Yes||cysec.gov.cy|
|MGA||Gaming||Europe / UK||Malta||mga.org.mt|
Why do we need financial regulatory body?
The motto of structuring a financial body is quite simple, yet the function is very important. Here are the mottos on which a financial regulatory body is formed:
- Insider trading is a big financial concern in these days. It is kind of scam. To cease this kind of market manipulation, we need financial regulation.
- The sources of financial services should remain enough competent. To ensure that we need to draft a financial regulatory body.
- Investigation against any complaints and protecting clients are the two biggest mottos of financial regulatory body.
- The financial system should remain confident. To maintain that smoothly and secure that to sustain for a long term, financial regulatory body is formed.
- Every financial structure or an organization abides by certain laws and norms. To maintain that financial regulatory bodies are formed.
Every financial decision in a financial structure is carried out by the financial regulatory body. This is a global rule and there are no exceptions! But, there are some special cases, where specific regulatory bodies are formed to carry out every single financial decision unique. Such financial bodies can be – insurance sector, banking sector, pension markets, securities, etc. In some cases, futures, commodities, and forwards are also considered alike.
For an instance, prudential residential organization or regulatory body of Australia manages both insurance and banking sectors. Likewise, ASIC or Australian Securities and Investments Commission maintains corporation laws and financial service enforcements.
In some cases, it has been also noticed that there are more than one organization which carries through the banking finance management task. For example, apart from governing body, a central bank is also there, which has its own guidelines and set of norms. Every bank in the federal structure must adhere to this central bank.
Different countries have different financial association. For example, CySEC, LGA, FCA belong to European Union. In past few decades, as the technology and human development took place, the financial regulatory structure has been redefined significantly. After hitting the globalization concept in the scenario, things are changing swiftly.