Best BFSC (Bulgaria) Regulated Forex Brokers 2018
In Bulgaria forex trading is becoming a very popular avenue for people seeking both short term and long term investment. It is important for you to choose a broker that is licensed by the BFSC. But which are the best? We have compiled a list based on in-depth research and user reviews.
Introduction to BFSC Regulation
Under the Financial Supervision Commission Act and independent oversight authority called the Bulgarian Financial Supervision Commission was established in 2003. Choosing a forex broker that is licensed by the BFSC is of paramount importance because it safeguards your rights as an investor as well as your protecting your capital investment.
The main purpose of the BFSC is to regulate and oversee the operation of financial service providers such as investment firms, brokerage firms and insurance providers. This is done through initiating legislation and amendment of guidelines to be adopted by firms operating in their jurisdiction. The BFSC is charged with the responsibility of awarding licenses to these firms upon fulfilment of certain standards and submission of the required documentation. The validity of these licenses are subject to whether the firm continues to fulfil the requirements and could therefore be suspended in the event that there is contravention of the set regulations.
Some of the regulation set by BFSC include making sure that the licensee maintains a certain level of liquidity at all times and that there is separation of company funds from investor capital. They conduct periodic audits to make sure that the licensee is operating within the legal framework set by the BFSC. This also ensures that the investors’ rights are protected. In turn the licensee is also meant to conduct thorough due diligence on their clients in order to make sure that they (the firm) are not used as a vehicle for money laundering.
How BFSC Regulation Protects You
BFSC regulation gives you peace of mind such that you can focus on making money instead of wondering if/when the broker you chose will close shop or declare bankruptcy. The legislation that is enforced by the BFSC is normally in line with European legislation and up to standard with international practices.
The BFSC releases market analysis periodically after conducting research so that market participants can be aware of potential opportunities and act accordingly to make the most out of them. At the same time, these reports inform market participants of any impeding risks so that they can be avoided or mitigated well in advance therefore preventing unnecessary losses.
BFSC maintains a list of approved brokers as well that is available for perusal by the public. They also notify the public regarding any authorized economic activities such as IPO’s to prevent circulation of false information.
Guidelines for BFSC Regulated Brokers
Brokers regulated by the BFSC are required to comply with the AML guidelines so that they do not accidentally do business with criminals or terrorists. These brokers are also required to cooperate with the regulator who will sometimes perform on-site and off-site scrutiny of their business operations. It is the responsibility of these brokers to contribute a specified amount of money towards a compensation fund that will benefit investors in case of the licensees is unable to meet its obligations to its clients.
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List of Brokers
|BROKER||USER RATING||REGULATED BY||HEADQUARTERS||MIN. DEPOSIT||OFFICIAL SITE|
|ASIC, CySEC, FCA||Israel||$100||Open Account|
|ASIC, BVI, FSA(JP), FSB, MiFID||Ireland||$100||Open Account|
|ASIC, CySEC, FCA||Cyprus||$200||Open Account|
|CySEC, FSB||Cyprus||$100||Open Account|
|BaFin, FCA||United Kingdom||$300||Open Account|