FXTM is a forex and CFD broker offering online trading services to traders and investors worldwide. The broker provides a diverse range of trading instruments, including Forex, Metals, Stocks,Commodities, Indices, cryptocurrency. It also supports multiple trading platforms and tools such as MT4 MT5, WebTrader, Mobile Trading.
FXTM is regulated by several authoritative bodies such as CySEC, CMA, FCA, FSCA, FSC-Mauritius. However, FXTM is not regulated by the FINMA ( The Financial Market Supervisory Authority). In this article, we will explore FXTM’ regulations, and its features, and provide a list of alternative brokers that are regulated by FINMA.
Does FXTM Operate Under FINMA?
No, FXTM does not operate under FINMA (The Financial Market Supervisory Authority) regulation. However, the broker is regulated by several other reputable financial authorities including CySEC, CMA, FCA, FSCA, FSC-Mauritius. These regulatory bodies ensure compliance with various standards for financial stability, transparency, and investor protection, though they do not provide the specific protections offered by the FINMA in Switzerland.
What Other Regulations Does FXTM Have?
FCA (Financial Conduct Authority)
FXTM is regulated by the Financial Conduct Authority (FCA) in the UK under license number 684312. The FCA, established in 2013, is responsible for regulating financial markets and firms in the United Kingdom.
The FCA requires FXTM to adhere to strict guidelines for financial conduct, including maintaining adequate capital, safeguarding client funds, and ensuring transparency in its operations. This includes keeping client money separate from company funds and providing regular financial reports. FCA regulation helps ensure that FXTM operates securely and fairly, offering a high level of protection and trust for clients in the UK and across Europe
CySEC (Cyprus Securities and Exchange Commission):
FXTM is regulated by CySEC. Established in 2001, Cysec is Cyprus’s financial regulator. Since Cyprus joined the European Union in 2004, CySEC’s regulations align with the MiFID directive, ensuring compliance with EU-wide financial standards and investor protection. This regulation allows the broker to offer services across the European Economic Area (EEA) under the MiFID II directive, ensuring investor protection and transparency. CySEC regulation requires brokers to follow strict guidelines for handling client funds, including segregation and periodic reporting.
CMA (Capital Markets Authority – Kenya):
FXTM is licensed and regulated by the CMA in Kenya. Founded in 1989, The CMA of Kenya regulates the Kenyan capital markets, including forex trading. The CMA allows a maximum leverage of 1:400 and ensures that financial institutions adhere to standards for transparency, fairness, and investor protection. It is operated by the Kenyan government. For more information, visit the CMA website.
FSCA,
FXTM is regulated by the Financial Services Board (FSB) of South Africa. The FSB, established in 1990, was the financial regulatory authority in South Africa responsible for overseeing non-banking financial institutions before being replaced by the Financial Sector Conduct Authority (FSCA) in 2018.
Under FSB regulations, FXTM was required to maintain strict standards, including holding adequate capital, protecting client funds by segregating them from company assets, and ensuring transparency through regular financial reporting. This regulation helped ensure that FXTM operated securely and reliably, offering a safe trading environment for clients in South Africa.
FSC-Mauritius
FXTM is regulated by the Financial Services Commission (FSC) of Mauritius. The FSC, established in 2001, is the regulatory authority overseeing the financial services sector in Mauritius.
The FSC requires FXTM to comply with regulations that ensure the safety and transparency of its operations. This includes maintaining adequate capital, protecting client funds by keeping them separate from company assets, and providing regular financial reports. These requirements help ensure that FXTM operates securely and reliably for clients in Mauritius, fostering trust and integrity in its trading services.
Best FINMA Regulated Forex Brokers: Alternatives to FXTM
FXTM is one of the leading forex and CFD brokers. The broker is not regulated by FINMA. It is regulated by other top-tier regulators including CySEC, CMA, FCA, FSCA, FSC-Mauritius. There are several FINMA regulated brokers that can serve as alternatives to FXTM. These brokers include:
Affiliate Table: 5 FINMA-Regulated Forex Brokers
These brokers operate under FINMA regulation. According to FINMA rules, they offer leverage up to 30:1 and provide negative balance protection for retail traders. To learn more about FINMA-regulated forex brokers, you can read our content on the best FINMA -regulated forex brokers.
How Can I Verify If My Broker is regulated by FINMA or Not?
How Can I Verify If My Broker is FINMA Regulated?
Here’s a detailed explanation of how to verify if your broker is regulated by FINMA, with expanded paragraphs under each subheading:
1. Find the Broker’s Name:
The first step in verifying your broker’s regulatory status is identifying their legal name. This information is typically available on the broker’s official website under sections like “About Us” or “Legal Information.” Make sure you’re using the broker’s full legal name, not just the brand name, as companies often operate under multiple names or subsidiaries. Having the exact name ensures an accurate search when you look up their registration with FINMA.
2. Visit the FINMA Website:
Once you have the broker’s legal name, visit the official website of FINMA. The Swiss Financial Market Supervisory Authority maintains a public register where you can find all authorized institutions and individuals. This register is a reliable source for confirming the legitimacy of brokers and other financial institutions operating under FINMA’s supervision. You can access it through this link: FINMA Licensed Institutions and Persons Page.
3. Enter the Broker’s Name:
On the FINMA website, you will find a search bar designed for checking the authorization status of financial firms. Enter the broker’s full legal name in this search bar. Make sure you input the name exactly as it appears on the broker’s official website. A precise search is crucial to ensure you are checking the correct entity, as some brokers may have similar or overlapping names.
4. Select the Category:
To refine your search and get the most relevant results, choose the appropriate category from the drop-down menu. For forex brokers, you should select “Banks and Securities Firms” as the category. This narrows down the search to firms that are authorized to offer forex and other securities trading services under FINMA’s regulation. Selecting the right category helps avoid confusion with other types of financial service providers.
5. Check the Broker’s Information:
Once the results are displayed, examine the broker’s profile on the FINMA website. Compare the information provided by FINMA with what’s available on the broker’s website. Look for details like the broker’s full name, address, and license status. It’s important to confirm that the broker is authorized as a bank or securities firm by FINMA, as this is a key requirement for offering forex trading services in Switzerland. If the broker is not listed or does not hold the necessary license, you should be cautious, as they may not be legally allowed to provide forex services. In such cases, it’s advisable to avoid dealing with that broker
Frequently Asked Questions ( FAQs)
What is FXTM?
ForexTime (FXTM) was founded in 2011. The broker facilitates the trading of over 1,000 forex, CFDs, and real US stocks on its MT4, MT5, and FXTM trader platforms. FXTM states that it has over 1 million clients from over 150 countries and has won over 45 industry awards for excellent services.
Is FXTM Considered Safe?
Yes, FXTM is considered safe. FXTM is not regulated by FINMA. However, The broker is regulated by other reputed regulatory authorities including CySEC, CMA, FCA, FSCA, FSC-Mauritius. These regulations ensure strict compliance with industry standards and provide protection for client funds.
