Requirements for Forex brokers to become ESMA-regulated

Posted on 2023-05-01

Forex brokers operating in the European Union are required to be regulated by the regulatory authorities of the member state in which they are based, as well as to comply with the rules and regulations set by the European Securities and Markets Authority (ESMA).

ESMA has introduced a number of regulations over the years, including the MiFID II regulation, which requires all Forex brokers operating in the EU to be licensed and regulated by the appropriate national regulatory body. ESMA has also set new rules that affect Forex trading, such as restrictions on leverage and negative balance protection.

To become ESMA-regulated, Forex brokers must comply with the rules set by ESMA and obtain a license from the appropriate national regulatory body. They must also comply with the rules regarding client funds, including segregation of client funds, and provide adequate protection against fraud and financial crime.

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