Having seen a number of articles recently regarding FSA regulation and Currency Brokers, I thought it was about time that someone actually laid out the facts. FSA REGULATION DOES NOT MAKE YOUR MONEY ANY SAFER.
Having seen a number of articles recently regarding FSA regulation and Currency Brokers, I thought it was about time that someone actually laid out the facts. FSA REGULATION DOES NOT MAKE YOUR MONEY ANY SAFER.
All high street banks are FSA regulated and last year this did nothing to prevent these banks from almost going into liquidation and their FSA regulation did not save them.
There are two categories that Foreign Exchange companies fall into depending on the main role of their business. Speculative foreign exchange is deemed as an investment and therefore is under the remit of the Financial Services Authority. However, deliverable Foreign Exchange is deemed as a money transfer and is therefore governed by HM Customs & Excise rather than the FSA, all High Street banks that deliver currency on behalf of their clients are also only governed by HM Customs & Excise for this aspect of their business.
Some foreign exchange companies are appointed representatives of FSA regulated companies, this means that the Exchange company may not have any additional regulation but the fact that an FSA regulated company is willing to trade with them often gives other clients necessary peace of mind. For further information on this and other currency matters
