For those of you considering Forex trading as an investment, the first hurdle you need to climb is to find yourself a Forex broker in the British Virgin Islands. Because there are simply so many to choose from and it can get a little overwhelming. There are a number of factors to bear in mind when choosing a Forex broker but regulation should feature at the top of your list every time. After all, Forex trading is a risky enough form of investment without adding to the worry.

So make sure you consider BVI FSC regulated brokers first. Forex trading is a largely unregulated form of investment, as there is no one single body responsible for supervising the industry.

Instead, individual countries tend to oversee this form of investment and all participants thereof. In the British Virgin Islands responsibility is on the shoulders of the British Virgin Islands Financial Services Commission, or BVI FSC for short.

The BVI FSC has ultimate responsibility for the supervision, regulation, and inspection of all financial services operating in the country. It is the watchdog for insurance, trustee banking, intellectual property, banking, company registration and management, and limited partnerships. The aim of the Commission is to safeguard the public against unauthorized or illegal financial service providers which offer services from or within the British Virgin Islands.

The British Virgin Islands Financial Services Commission is an autonomous body but it maintains accountability with regular reports to the Virgin Islands Cabinet and House of Assembly, in accordance with the Financial Services Commission Act. It has a Board of Commissioners which are appointed by the Cabinet. And the Board is responsible for determining policies in order for the Commission to achieve its primary objectives.

The Financial Services Commission of the British Virgin Islands was created in , following the passing of the Financial Services Commission Act Previous to this regulation was taken care of by the Financial Services Department of the Government.

BVI FSC Regulated Forex Brokers - Trading in the British Virgin Islands

Following the passing of the Act, all financial services which took place in the British Virgin Islands became the sole responsibility of the Commission. This included BVI FSC regulated Forex brokers, but also insurance services, investment business banking, insolvency services, and the formation and management of companies and intellectual property.

The Commission is also responsible for handing out licenses to anyone wanting to offer financial services.

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When the Financial Services Commission Act came into force a number of new firms decided the British Virgin Islands would be a good place to set up business, but this meant they had to follow the new set of rules and regulations. But those of you with a little more experience will recognize the importance of regulation and possibly be aware of some of the bigger names in the sector. For example, there is the FCA in the UK, and CySEC in Cyprus, as well as the CFTC and the SEC in the USA.

We should advise you that not all regulatory bodies work in the same way or offer the same level of protection. And picking a lesser known regulatory body can be a little hit and miss.

It seems that the popularity of the BVI FSC is growing, but unfortunately, it has received some industry criticism. This is because a number of the better known and more respected regulators impose certain threshold conditions. But this is not the case with the BVI FSC.

BVI FSC Forex brokers are not required to keep a minimum level of capital, to segregate client funds, to participate in a compensation scheme, or provide any information for customers with regards to an execution policy.

These basic requirements are used by the stricter regulatory bodies and also form part of MiFID.

Forex Brokers in the British Virgin Islands | British Virgin Islander Forex Brokers

This law was developed to provide harmonized regulation for investment services across all European Economic Area member states.

While the BVI FSC may be seen as a light touch with regards the regulation of the financial services sector, it does seem to be moving in the right direction. However, you will certainly be able to get a better level of protection from one of the more well-known and respected regulatory bodies.

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