The growth of retail FX trading attracted the attention of financial regulators, who sought to protect individual traders from shady forex brokers and maintain market integrity.
The retail FX market was super shady back then! It was the Wild West! 🤠
They introduced strict rules and requirements for FX brokers, making sure they had enough capital, managed risk properly, and treated customers fairly.
It was like having a stern but loving parent watching over the market.
Prominent regulatory agencies in the retail FX industry include the US Commodity Futures Trading Commission (CFTC), the UK Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), and the European Securities and Markets Authority (ESMA).
These regulators have implemented measures such as leverage restrictions, negative balance protection, and mandatory segregation of customer funds to protect retail traders.
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