Best CIMA (Cayman Islands) Regulated Forex Brokers 2018
Are you a forex trader based in the Cayman Islands? If so you should trade with a CIMA regulated broker. Inside, we have compiled a list of the very best CIMA regulated brokers, based on our own research and that of our users.
Introduction to CIMA Regulation
CIMA stands for the Cayman Islands Monetary Authority. It is hard to ignore the fact that the Cayman Islands used to be a safe haven for those who didn’t want too much scrutiny in regards of where their funds came from. This means that a lot of money laundering would be done in the Cayman Islands and although this meant that there were a lot of cash inflows, it was not only illegal but unethical. Arms dealers, terrorists among other unscrupulous clients were basically home free when they did their ‘accounting affairs’ in the Cayman Islands. With the establishment of CIMA, this is no longer the state of affairs.
CIMA began work in 1997 with the aim of safeguarding the reputation of the Cayman Islands as a transparent and thriving financial market that was up to date with international standards. It came about after the coming together of two regulatory bodies which are the Cayman Islands Currency board and the Financial Services Supervision Department of the Cayman Islands Government. In 2003, a law was passed to safeguard CIMAs operational independence and as a result, CIMA has since been able to enhance operations and meet international standards of accountability.
CIMA is responsible for oversight and regulation of the financial service providers in the Cayman Islands. These service providers include credit providers, insurance providers, trusts, co-operative societies, investment funds and securities. According to section 34 of the Monetary Law of the Cayman Islands, CIMA may create, amend and implement policies concerning the securities, commodities, derivatives and forex markets.
CIMA is in charge of receiving applications from financial service providers, reviewing and making decisions on them. If an application is rejected, CIMA is meant to provide a written notice of the decision to the applicant.
How CIMA Regulation Protects You
CIMA provides an updated list of entities that are licensed to carry out business within the financial sector. This protects you by preventing you from selecting a broker that is not licensed therefore saving you from undue stress that would have come about as a result of fraud or poor service. You are also informed about excluded persons so that when doing business with such entities, you are fully aware that they are not regulated by CIMA. Conflict resolution is also part of CIMAs responsibilities such that if an investor is not in agreement with his/her brokerage over a certain decision, they can report this issue to CIMA after which a way forward will be forged based on the state of affairs.
Guidelines for CIMA Regulated Brokers
Brokers licensed by CIMA are required to safeguard the investors’ capital. This means that they are supposed to inform their customers of the risk involved in participating in the market and only offer advice after the client has consented to understand the risks. The broker is required to exercise fair/timely allocation and execution of trades to clients. They should not overcharge the client for services offered and also not put the client’s capital in an undesirable market position. Client’s assets must be protected against insolvency to the best of the broker’s ability and if this is not possible, the broker must ensure equivalent monetary reimbursement. Statements of accounts should be issued to investors on a regular basis to ensure transparency in their dealings.
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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|