Safety and Protection in the Forex Market
Forex Regulations
In the world of currency trading, the transactions carried out by, for example, Citi Forex, result in the exchange of funds. To regulate these monetary transactions, strict forex policies and rules are in place that monitor and control the activities of traders and financial institutions.
Foreign exchange regulations are maintained and checked by a variety of international organisations that have the legal powers to ensure that the providers of forex services strictly adhere to them.
United Kingdom
In the United Kingdom (UK), the Financial Services Authority (FSA) is the governing body for forex transactions. The FSA a fully independent organisation, which has statutory powers as a result of the Financial Services and Markets Act 2000. In the UK, it is the regulator across the whole financial services industry.
United States
In the United States, the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) regulate forex markets. The NFA is a self-regulatory body and it is compulsory for all forex brokers to become members.
Citi Forex
Both the Office of the Comptroller of the Currency (OCC) and the Federal Reserve regulate Citibank. This puts Citibank, with its abundance of funds, in a very strong position to ensure that Citi Forex complies with all the appropriate rules and regulations, so that clients can feel safe and protected at all stages of trading.
Undoubtedly, brokers can bankrupt themselves, so the insurance that is provided by the FDIC provides a real and important safety net for Citi Forex traders.