In contrary to many other countries like Germany, the United States, Australia, etc., in France, the regulation of the financial market is taken care of by a 100% government institution. The official regulator is the Banque de France (the Bank of France). The institution exists from the 1800s and played a significant role in shaping of France’s economy. It is highly ranked as one of the most powerful central banks on the global level.
Banque de France Framework
To ensure integrity of the financial market, the Banque de France has several regulatory agencies like ACPR (supervision of banking and insurance sectors), AMF (Stock Market regulation), CCSF (Consultative Committee of the Financial Sector), CCRLF (development of prudential regulation), and the GSBF (regulation of monetary policy).
The government requires all legal, financial companies (banks, brokers, insurance companies, and all other companies related to the market financial services) to be regulated by one of the regulatory agencies under the wing of the Bank of France.
The ACPR in conjunction with AMF is the direct supervisor and regulator of the Forex broker companies and the capital market in general. The AMF is an independent regulatory body for the stock market.
Clients of these regulatory bodies are small in number because EU-licensed brokers, like CySEC or the German BaFin, can operate in France without any hindrance due to EU directives that allow a single market for financial services in any EU member state. The Markets in Financial Instruments Directive from 2007 allows that all registered supervisory agencies, which comply with this Directive, can operate freely in any EU based country.
Many turn to other EU regulatory agencies due to administrative reasons. The financial laws in France require a lot of paperwork and red tape. That seem to be inconvenient for many brokers, and they simply switch to the less demanding alternatives across national borders. Cyprus for example is a very attractive location for broker companies especially because of the tax benefits.
The Organizational Ladders and Complaints
As in the other EU countries, France also imposes strict rules and protocols upon its subjects of regulation. As an institution of large proportions, the Bank of France cannot deal with individual complaints, but it set up a procedural structure for companies to follow. If a customer should file a complaint, the best option is to follow the procedure adopted by most EU member states.
Since the EU harmonized most of the laws in all EU member states, all EU-based regulatory agencies work under similar conditions. The ACPR and AMF follow the Markets in Financial Instruments Directive and are similar in structure to all other regulatory agencies across Europe.
If an investor is dissatisfied or thinks that the company did them wrong, there is an order to be followed. The procedure requires first to approach the company, and if the involved parties cannot come to an agreement, then the complainant can seek help from the ombudsman. If the Ombudsman cannot do anything, the court is the next step.
This should not discourage investors from filing complaints if they have been treated unjust because complaints are taken very seriously and handled with great care and they can result in revoking the company’s license.
The Bank’s Broker List
Even if short, the list of brokers under the supervision of the Banque de France is very reliable and trustworthy. The list is available on the official website of the bank.
As every supervisory agency, the Bank of France also strongly advises potential traders and investors to make a thorough backup research on the market and brokerage companies, since Forex is a fertile ground for fraud and scams and many companies pretend to be something they are not.
Your broker is supposed to be your support, your main business partner, and a professional entity. Therefore, always look for a registered company and double-check their registration.
The Banque de France registered Forex brokers have a good reputation, and they follow rigorous protocols to maintain the stability and security of their businesses.
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Top Brokers and Their Policy
The Banque de France registered brokers offer different services. Some require high deposits, while others require really low deposits. The same goes for bonuses and leverage policy.
Once potential investors and traders know how to find the top brokers they will learn that professionals and beginners alike have equal access to the Forex market. It is not something reserved for the very rich or experienced professionals, but for everyone.
The Banque de France registered brokers, which are among the top European brokers, are easy to find on the Bank’s website.
The best brokers always have a strong regulation policy and a decent regulatory agency. Good news travels fast, and that is true for good brokers as well. The top brokers establish a solid reputation very fast, and your research should certainly include clients’ reviews. In that way, you obtain information first hand on how they treat their investors.
Once you become a trader, you will learn the importance of a trading platform and the features it possesses. Top broker companies offer top platforms which meet clients’ needs. The trading platform is the main operating tool and should offer you an easy –to-use interface and all other relevant options for currency trading.
The platforms come in various types: downloadable versions, online browser platforms and as phone apps.
The Forex industry is very competitive, and in the race to win as many newcomers as possible, every top Forex broker provides educational resources or a learning center to direct newcomers into the right direction in the entertaining but harsh business reality.
The best brokers out there offer various payment methods, as well as fast payouts. You should be able to withdraw your profit as soon as possible without the broker mingling into that. Luckily, top brokers realized that a fast cash out service is a magnet that attracts a lot of new customers, and they employ fast payout methods (24-hour rule).
As a beginner you should try to stick to licensed, top-rated and recommended brokers who require small deposits. Some of the best brokers offer appealing bonuses to reward their customers. Still, bear in mind that a broker is not bad if they do not offer any bonuses. That depends on many aspects of their business policy.