Daniel Carter Posted August 22, 2020 Share Posted August 22, 2020 Hi, I would like to know more about legality of Forex trading. Quote Link to comment Share on other sites More sharing options...
0 Koby Horner Posted August 22, 2020 Share Posted August 22, 2020 Hello, thanks for asking. No, it is a common misunderstanding that Forex trading is illegal and banned in some countries. Forex markets are part of the approved and regulated financial markets. The trading process and investments are regulated by countries and international financial institutions, hence all operations must be done according to their laws. Quote Link to comment Share on other sites More sharing options...
0 Jordan Maddison Posted August 25, 2020 Share Posted August 25, 2020 Hello, thank you for your question! One of the most common misconceptions about Forex trading is that it is illegal. Individuals in various countries get confused because they think that Forex trading is similar to gambling, which is not similar to. Numerous bodies control and regulate Forex trading in various countries, they do the necessary background check of the trader and his credentials. By doing so they make sure that regulations enacted by laws in their countries are respected, and that Forex is kept free from immoral traders. In the USA these regulators are SEC, CTFC, NFA, FINKA, and SIPC. They all concern themselves with different parts of Forex trading such as securities, market regulation, protection of investors, and independent overseeing roles. Other larger countries, which have a large volume of trade like Switzerland (FINMA), UK (FCA), Australia ( ASIC), European Union (ESMA, MIFD) all have their regulating bodies, which are put in place to control and regulate trading, and new traders. People often think that Forex is banned in the USA, but that is not true. It is very tightly and carefully monitored which in some segments makes the trade harder and more complicated. Also, there is a requirement that demands that those companies which want to provide Forex trading services need to have a security deposit of $20 million. Which deters some providers, and they do not provide this service to US citizens. In Islamic countries, which adhere to the Sharia Law, parts of Forex trade that contain interest have been removed, but Forex trade is still available interest-free, also without the use of leverage that is forbidden in accordance with the Sharia Law. Quote Link to comment Share on other sites More sharing options...
0 Clark Kenneth Posted August 28, 2020 Share Posted August 28, 2020 Hello, thanks for asking! Forex trading is not illegal in any country, it is only more regulated in some countries than it is in others. There is an issue of Forex trading being legal by religious standards, more specifically, by Sharia law in Islam, which prohibits any kind of interest and leverage when trading, but that has been resolved, by removing those components for Forex trading in Muslim countries. Quote Link to comment Share on other sites More sharing options...
0 Emma Smith Posted August 31, 2020 Share Posted August 31, 2020 Hi, thanks for your question! Because of the strict and heavy regulations imposed on Forex trading in the U.S., it is a common misconception that Forex trading is in fact, illegal. In other countries, because of the complex Forex structure, it is hard for legal institutions to effectively keep track of trades that take place in Forex, which leads people to think that Forex is some kind of black market or illegal. In some places, it has proven as a nice ground for scammers, which have tricked or scammed several Forex traders, leading people to conclude that Forex is unsupervised, and this leads to the occurrence of scams, but it is not so, in the USA Forex is supervised by Futures Trading Commission (FTC) and, National Futures Association (NFA). These organizations serve as regulators and providers of certification to brokers which wish to operate in Forex, so it is always safer to cooperate with Brokers that have received authorization from these organizations, than with those which haven’t, as they may be scammers. Another thing that may lead people to think that Forex is illegal, is that because of the presence of interest in some segments of Forex, it is restricted and not fully operational in some Islamic countries which adhere to the Sharia Law. Quote Link to comment Share on other sites More sharing options...
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Daniel Carter
Hi, I would like to know more about legality of Forex trading.
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