To determine whether a company is formal and legal, first check whether it is legally registered and subject to supervision by relevant departments. This is the most important step to ensure the safety of customer funds.

U.S. Supervision

In December 2000, the United States passed the Futures Modernization Act, which requires all foreign exchange traders to register with the National Futures Association (NFA) and the U.S. Commodity Futures The CFTC is registered as a Futures Commission Merchant (FCM) and accepts daily supervision by the above-mentioned agencies. Foreign exchange operators who are not qualified or approved within the period will be ordered to cease operations. The introduction of this bill has put online foreign exchange margin trading on the track of standardized development.

NFA is an industry self-regulatory organization. Relatively speaking, the investment industry in the United States is relatively mature and standardized. Therefore, the first thing many investors look for when choosing a margin broker is: whether the institution is registered and managed by the NFA, and they will also check whether the institution operates in a There is public information such as bad records. This measure provides certain convenience for individual investors to understand the credibility of traders, and plays an important role in artificial risk reduction projects.

NFA supervision query: Enter the NFA query page and enter the dealer number you want to query. Click Query to easily see the supervision status and related records of the dealer.

UK Regulation

The British Financial Services Authority, referred to as FSA.

The above government regulatory agencies are very strict about the security of customer fund accounts: First, customer funds and dealer company working capital accounts are kept separately in banks. Therefore, traders cannot misappropriate customer funds, and even if the trading company encounters financial problems, customer funds will not be affected. Secondly, an insurance company is required to provide credit insurance for the custodian bank, and the insurance company will compensate customers for losses. Therefore, in the worst-case scenario - when the bank also goes bankrupt, there are insurance companies that compensate customers' funds. Finally, customer complaints and handling results of each dealer will be notified and permanently recorded, and everyone can check them on the corresponding official website.

So, if you are a foreign exchange dealer supervised by the above-mentioned institutions, the safety of your funds is guaranteed, and you can open an account and trade with confidence. In other countries and regions, I'm not sure. It doesn't mean it's necessarily unsafe, but I personally don't think it's safe enough. When choosing a safe and reliable foreign exchange platform, supervision is very important