Modern world stock-exchange market – is a huge organism. The brokers, traders, stockjobbers, dealers and other participants of stock market are closely tied with each other, and such an integrated system needs a constant control over its legality, compliance with the community rules, dealing with controversial issues. As a supervisory authorities for the financial markets and their activities the financial regulators were created.

Financial regulators include:

  • state bodies supervising observance of legislation on the stock exchanges of the country. Can influence brokers through state structures responsible for the licensing of trading. Another instrument of influence is the introduction of new laws, rules, regulations governing the rules for issuing licenses and the exercise of national and foreign brokers in the financial market of the country;
  • independent associations. Monitor compliance with the trading rules, resolve conflicts between participants of the exchange trade. Can be created with the support of state bodies and market participants. Insurance portfolios and the capital of the associations is formed from annual contributions from market participants (e.g. brokers);
  • dealing centers unions.

We will pay attention to independent financial regulators (like associations and state agencies) as they have, as they have the most serious influence on world stock-exchange market.

The participation of the broker in one way or another recognized by the global financial community Association (the presence of the broker license of the Association) means the transparency of its activities, transparency of financial reporting, which is one of the main features of the reliability of the company.

Objectives and functions of state and independent financial associations

  • licensing of the brokers. Presence of the license approved by the world association means the fact that the brokers activities are over the constant control of the regulator;
  • providing the system of control, that protects the trader from possible illegal actions of the broker;
  • control over the stock market and compliance with the rules and standards of their participants;
  • analysis of the activities of the companies, whose securities are listed on stock exchanges;
  • functions of Ombudsman or an independent mediator during the resolution of conflicts, insurance of traders’ capital.

Many traders in order to earn the trust of investors publish an information on their websites about the licenses of the Associations (number and date). We strongly recommend to double-check this information on the website of the Association. Only the existence of the information about the broker on the website of the financial regulator may be the guarantee of its membership.

The presence of the valid license with a broker may prevent the possible fraud from the broker towards the trader, but this does not guarantee in any way the preservation of the capital of the trader on trading account due to incorrect trading decision adopted.

Below is the list of the main world independent financial regulators. You may learn more about the specific details of their work by clicking the link. For the convenience, we ranked them according to the degree of confidence of the investors, however, such ranking may be subjective:

  1. 1st level financial regulators:
  • NFA (the biggest stock-exchange regulator of the USA);
  • CFTS (USA);
  • SIPS (USA);
  • SEC (USA);
  • FINRA (USA);
  • FCA (Great Britain. Since 2013 is a holder of the rights of FSA association);
  • MiFid (directive of the EU, the standards of conducting economic activities in the EU markets. European associations can be called a part of overall system of MiFid);
  1. 2nd level financial regulators:
  1. 3rd level financial regulators:

More information about financial regulators of Russia you may find in this article.



  • Becky 02.09.2016 at 18:35

    I rellay needed to find this info, thank God!

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