Regulation of the forex market in France is the exclusive job of the Autorité des Marchés Financiers (AMF). This regulator is responsible for the regulation of the financial markets in France and also issues the rules and regulations under which forex brokers can do business in France.
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The AMF as a regulatory body gets a lot of support and guidance for its actions from Eurpean regulations on the financial market. The European Market Infrastructure Regulation document, also known as EMIR, is the document that guides the AMF in its regulation of the financial marketplace in France.
Traditionally, the AMF discourages speculative investments on the retail end of the market. Rather, the organization has tended towards supporting retail investments in stocks, resulting in a plethora of stock market brokerage operations in France. The grouse of the AMF with retail forex investment is the promises made by the forex brokers on how much of returns that traders can make from the market. In other words, the AMF believes that retail forex brokers overhype the return factor and downplay the risks in retail forex.
To identify if a forex broker is regulated by AMF, the first step is to identify the name of the entity from the disclosure text on the broker's homepage. For example, here's the key disclosure text from FXCM's website.
FXCM holds a banking license issued by its supervisory authority the AMF.Next, look up the firm on the list of supervised institutions listed on AMF's website to validate the firm's current regulatory status. Here is the official AMF page.
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