In the retail foreign exchange industry, supervision is relatively mature. In the United States, the Commodity Futures Trading Commission (CFTC) is the government regulatory agency of American retail foreign exchange dealers, and the National Futures Association (NFA) is the industry self-regulatory agency, which implements double supervision on American dealers. In Japan, the government supervision implemented by the Japan Financial Agency has led to the rapid expansion of Japan's foreign exchange retail business; In Hong Kong, government supervision began at 1994. For CFD supervision, Britain and Australia are at the forefront of the world.

Financial Services Authority (FSA)-Global Pass for CFD Traders

The volume of foreign exchange transactions in the British foreign exchange market ranks first in the world, surpassing the United States. At the same time, the "liberal and enlightened" characteristics of British regulation have also attracted many financial institutions.

Britain is also the first country in the world to implement unified financial supervision. The Financial Services Authority (FSA), which is responsible for financial supervision, is responsible for "closely monitoring the activities of financial institutions such as banks, preventing and punishing fraudulent and dishonest operations, and preventing and punishing acts of transmitting false information in financial markets or profiting from false information". Its certification qualification is recognized by the world. After obtaining FSA certification, CFD traders have obtained a "global pass". Bank of China, a Fortune 500 company, is also registered in FSA.

Check whether CFD traders have FSA registration. If so, it is regulated by the Financial Services Authority (FSA).

The following figure shows that the FSA in the UK enjoys a good regulatory reputation.

Figure. Country analysis of FSA's world reputation

Not necessarily, because such CFD traders are not regulated by FSA, but government regulators in other countries will.

In addition to the Financial Services Authority of the United Kingdom, the Australian Securities and Investment Commission (ASIC) is also an important regulatory body, which is responsible for supervising the activities of its member dealers. It is equivalent to the discipline inspection organization of CFD traders in Australia.

Australia and Singapore are also important bases for contracts for differences. Some well-known CFD traders laid out their positions in the Asia-Pacific region through these two blocks several years ago. AFA has branches in Melbourne and Singapore, Australia. CMC Markets chose Sydney, Australia, and established CMC Markets Asia Pacific Pty Ltd

In this world, the contract for difference is a new thing. In addition to FSA supervision, the criteria for considering the credibility of CFD dealers should also be determined one by one-visit the official website of the regulatory agency, enter the information of the dealers under investigation and verify it carefully. This puts forward the language requirements and legal knowledge of traders. It does look a bit big, but the understanding of emerging financial products has to go through such a process of exploration and verification.