Most FOREX traders, before opening an account with a broker, wonder about the licensing requirements in place. This due diligence is an important prelude to any activity, as it ensures the safety of your investments while also safeguarding your funds from being abused. These two pledges are at the core of what FOREX watchdogs do. In what follows, we will present all the relevant information about Switzerland's FOREX regulatory body, the Swiss Financial Market Supervisory Authority (FINMA).
FINMA in Brief
FINMA is the Swiss government body responsible for financial sector regulation in the country. This includes the supervision of banks, insurance companies, stock exchanges, securities dealers and other financial intermediaries present in Switzerland.
FINMA is an independent institution with its own legal personality, based in Bern. It is institutionally, functionally and financially independent from the central federal administration and the Federal Department of Finance (FDF) and reports directly to the Swiss parliament.
For
FOREX brokers specifically,
FINMA plays two roles. The first is to
uphold transparency. The second is to
prevent scam brokers from stealing their customers’ money. Given its excellent reputation, a significant number of FOREX brokers and binary options brokers from all around the world have obtained registration from FINMA.
How to Verify If a Company Is Licensed by FINMA?
Each Swiss-based FOREX broker with which you are considering opening an account ought to be licensed by FINMA. Details for this should be easily accessible on FOREX companies’ Websites, with each carrying a register number. In cases where a company claims it is licensed by FINMA, you can easily verify this information by visiting FINMA at the following URL:
https://www.finma.ch/en. If you find results, then the company’s claims of licensing are legitimate. Otherwise, the company in question is
not licensed by FINMA and should be avoided at all times.
Filing A Complaint Against A FOREX Broker
In the rare cases where your FOREX broker has unlawfully tampered with your account, then you can file an official complaint with FINMA by visiting the following link https://www.finma.ch/en/finma-public/reporting-information/.
It is very unlikely that a FINMA-licensed company would dare meddle with your account for fear of the repercussions that may result. These include canceling the company’s FINMA license and/or closing it down altogether.
Finding FINMA FOREX Brokers
The extremely strict regulations and tight grip FINMA keeps over all Swiss financial institutions means FINMA-regulated FOREX brokers are few and far between. Even though there are relatively few FINMA-regulated FOREX brokers, you can rest assured that when you find them, these brokers are some of the finest in the industry and trading with them will be extremely safe.
Swiss rules and regulations are so strict that some very solid FOREX brokers avoid trying to get licensed by FINMA. Notwithstanding, this does not in any way mean that brokers who are not FINMA-regulated are bad. Often, brokers who operate in a large region such as the EU have to decide on which regulation out of a number of options they should seek. When you do find a FINMA-registered broker, you can be sure they are at the absolute top of the industry.
Who is Arincen and What Are Our Services?
Put simply, Arincen is a social networking platform that brings together traders and experts to exchange expertise and ideas. Collectively, we evaluate the best FOREX companies in the world while offering a comprehensive suite of services and tools, all in one place, either via a personal computer or a mobile app. Arincen offers a wide range of services, which include:
- FOREX charts.
- Live rates.
- The latest in FOREX signals.
- Technical analysis.
- An online trading academy.
- How to learn about FOREX.
- An up-to-date economic calendar.
The platform is so rich that you can create your own private portfolio of traders and experts that you like and follow their recommendations and investment sentiments.
Further, thanks to Arincen, users can keep an eye on market-price developments, as well as the latest news. Users can also benefit from the network’s educational courses, to say nothing of the exciting Webinars – all done in a modern and fast-paced work environment. Get everything you need in one place. Arincen: We Meet to Simplify the Trading World.
Conclusion
The fact that everything about Switzerland seems perfect to the rest of the world is not in doubt. What can be questioned, however, is how they go on achieving this reputation-turned-into-reality. In the case of financial transactions generally, and FOREX brokers particularly, the Swiss have a tendency to impose strict regulation to make sure every operation in the country runs smoothly.
It is thus not a surprise that FINMA is probably the financial regulator with the most power in the world. Luckily, it has not done so in an abusive manner. On the contrary, its stringent measures have only done good for consumers of Swiss financial services. If you are looking to get into FOREX trading, then finding a FINMA-regulated FOREX broker is certain to keep you safe and well protected, whether you are Swiss or not.
