It seems that Greece is following in the footsteps of its fellow neighbor Cyprus, which is one of the main Forex centers in Europe. Greece is also becoming more involved into the multi-billion and trillion turnover market. The government debt crisis or Greek Depression shook the country up several years ago in 2009. Banks were closed across the country and the trade deficit of Greece got out of control. A trade deficit means that consumption is bigger than production in a country. Being a part of the EU, Greece was supported for years from the EU fund and EU magnate countries until those investments declined and the Greek economy hit rock bottom. Greece was unable to sustain its economy without major EU investments and loans. When this happens to a country, usually the national currency depreciates and attracts investments, but Greece was already using the euro so it could neither attract investments, nor pay its debt in a cheaper currency. Greece reduced salaries in the following 4 years which led to recession, and unemployment more than doubled. Cuts in government spending stabilized the country a little bit by 2014. Now, slowly, Forex comes into the game and contributes to economic growth.
Supervision of the Financial Markets in Greece
The financial and securities markets in Greece are controlled by the HCMC. HCMC or the Hellenic Capital Market Commission is one of the regulatory bodies for financial activities in Greece along the Bank of Greece. The HCMC is responsible for making sure that financial companies behave in accordance with the law. It is independent of the state budget. Its revenues come from the agencies, bodies, and companies it supervises. The HCMC is accountable to the President of the Parliament and the Minister of Finance. As Greece is a part of the EU, the HCMC is also a member of the European Securities and Markets Authority (ESMA), which means that HCMC also works within the ESMA framework. The HCMC also works on the development of relevant regulation policies and makes sure that implementation of legislation is in place. The HCMC also takes part in drafting regulatory frameworks referring to the capital market, not only at state level, but also at an EU and international level. The entities under its surveillance include Greek and international investment companies, collective investment entrepreneurships and their managers, etc. The HCMC is involved in market research as well. It also keeps an eye on money laundering activities with the aim to suppress them. The HCMC has significant legal power; e.g. it can impose administrative sanctions and fees, revoke licenses, and it is in charge of reviewing and investigating investors’ complaints. The goals of HCMC include market transparency and fairness, customer protection, and national market integrity. Forex companies in Greece are also under the supervision of this regulatory authority.
Best Forex Brokers
|$ 100||Check Website||Review|
Advantages for Forex Brokers in Greece
Greece is a popular destination for the Forex business. Many local and international Forex companies enjoy the great conditions offered in Greece. Companies enjoy that they can operate throughout the EU with an HCMC license, and at the same time, they enjoy lower taxes with a registered office in Greece. Registered brokers in Greece also have the advantage of having Greek employees which cuts costs as well, because the Greek average salaries are lower, especially after the Greek Depression. The HCMC is in compliance with the MiFD directive which defines regulations for the securities and financial market and applies to all EU member states. The MiFD requires regulatory agencies and brokers, and other market participants to work according to best practices set out in the market. Customers are granted full rights which should protect them from corrupt market agencies.
HCMC Regulated Forex Brokers
In Greece, Forex traders and investors feel safe with HCMC regulated brokers because they know that the broker companies have to respect the law. Many traders found their way to the Greek market either with a domestic or international broker. The Greek market is in-between the western and eastern market, and domestic traders have a good chance to get the best out of both markets. The HCMC requires brokers to meet minimum capital requirements, to have qualified employees as foreseen by the organizational and structural requirements, and to submit regular reports on their business.
Top HCMC Forex Brokers in Greece
It takes a lot these days to be a top Forex broker who is better than the rest. In Greece too, broker companies compete with each other by trying to offer better conditions, better service, etc., than the other one. This resulted in a decent number of Forex brokers who worked out their service offers in detail. Many already known companies have settled in Greece to the satisfaction of many Greek customers. Top Forex brokers in Greece offer the same service as brokers anywhere else in Europe. All EU countries have similar policies and structures of supervisory bodies. The trend of expansion to eastern and southern European countries grows more and more in popularity. If you are looking to register with a Greek Forex broker, make sure that the broker has a reputable name and acts accordingly. You should look for the best platforms, an efficient customer support, fast payout processing, and everything else that makes a broker great.
Offshore Destination with Strict Regulations
Forex is an online business and can be conducted and run from anywhere around the world. Many brokers look for offshore solutions for various reasons. The reasons are usually lower taxes, more affordable employees, poor implementation of laws, i.e. unregulated markets where they have more liberties, access to new markets, increasing number of clients, etc. Greece cannot be seen as a typical offshore destination, but partially it is. The many large brokers came to Greece to enjoy all of the conveniences offshore destinations offer. Still, when it comes to Greece, we cannot say that the regulatory body is loose or irresponsible or that it lacks legal power to act. Greece is still part of the EU, and the rules are clear. The beautiful tourism-oriented country has also been taken by the Forex market. The Greek contribute to a viable and vivid Forex market by joining the market every day.