The French financial regulator AMF Autorité des Marchés Financiers has always maintained a strong stance against financial fraud of any kind.
However, it is always advisable to make sure your trading is done with a regulated Forex broker in France. If you want to know more about a particular broker then you can check their license on the website of the AMF, Autorité des Marchés Financiers.
The AMF is an independent body, responsible for safeguarding investments in financial instruments and all other savings and investments. Once it joined the European Union, the official currency became the Euro. Ever since it was introduced in , it has been used in most money operations carried out in France.
Now a number of the best Forex brokers are offering their services to residents of France, and there are also a number of local French Forex brokers to choose from. The Bank of France is one of the biggest influences on the foreign exchange market in France. There are very few other Forex markets who are dependant as the one in France. One of the reasons for the popularity of the Forex market is the liquidity of the Euro. Most of the losses are attributed to the unscrupulous practices of brokers who are located outside the shores of France and out of reach of the AMF in response to numerous complaints of these infractions made to it by victims.
In the light of the information provided above, we can therefore see that it is going to be very difficult for brokerage firms to get licensing to do forex brokerage business in France. With what could be viewed as a biased mindset of the AMF towards the business of forex, many forex firms would not waste their time and efforts to try to get licensed in France, but would rather move to places like the UK, Cyprus and Germany where they would more easily get their business registered.
Forex traders in France will therefore have to seek other options abroad with licensed companies. The maintenance of the blacklist by the AMF is not entirely a bad thing, as our review has shown that there are several forex brokers on that list which deserve to be there as a result of nebulous regulatory disclosures on their websites. Going forward, the AMF would be better served by making known to traders in very clear terms, the reasoning behind the listing of some of the companies in the blacklist.
It should not be left to traders to have to start combing the internet searching for reasons for the blacklisting of brokers. Newbie traders do not have the knowledge or the experience to start sifting information as to why a broker is blacklisted or not.
By making the reasons known to all, some contribution to knowledge can be made for the benefit of new traders, who can then tap into this resource when searching for brokers to do business with. Such disclosure has the potential to save many traders from falling into the hands of these scam brokers. It is our opinion however, that the AMF should drop its hardline stance against forex trading as a whole, and focus instead on sanitizing the sector.
We use the knife to draw an analogy in this regard. A knife is a tool. In the hands of a chef, a knife would be useful in cutting up ingredients which would make for great recipes. Use our well-researched list to discover who are the best brokers to trade with if you are located in France. While Forex trading has been gaining popularity in France, so too have the number of complaints about French forex brokers.
As a result of the increased level of complaints, the French authorities have taken a hard line stance against high-risk investments by banning all electronic advertisements of such products. Nevertheless, it is legal to trade forex in France although as a French trader, you need to conduct your own due diligence to find the best French forex brokers to work with. The French financial regulator AMF Autorité des Marchés Financiers has always maintained a strong stance against financial fraud of any kind.
It has always tried to encourage its citizens to invest in more conservative investments such as stocks. To protect its citizens from being lured into investing in high risks investment products, the AMF has totally banned all electronic advertisements of forex products due to the belief that most of the forex brokers in the industry have downplayed the risks involved in forex trading.
Consequently, the AMF has now maintained an official list of forex brokers that are unauthorized and unsafe to invest with. Because of the strict monitoring and actions taken by the AMF, most of the unauthorized brokers have moved their operations outside the reach of the AMF or have switched to other products.
Established in under the Financial Security Act, Autorité des Marchés Financiers AMF is the main agency in France that is responsible for safeguarding the stability of the French financial markets. The majority of the French forex brokers are actually local branches of forex brokerage firms that obtained their authorization from the Cyprus Securities Exchange Commission CySEC. As the target markets of these brokerage firms are clients from all over the world, these brokers usually adopt the trading platforms that have the widest appeal.
The most popular being the MetaTrader platform. Other trading platforms that are normally adopted by the forex brokers in France are the cTrader and the Sirix WebTrader. It is the forex industry standard practice not to charge traders any commissions on the trades that they make. In lieu of commission charges, what forex brokers do is widen the spreads which traders have to pay on the assets that they are trading. These spreads can be fixed or floating and typically range from 0.
For forex brokers operating with a NDD Non Dealing Desk business model, only then will traders be required to pay a small commission for each lot traded.