There may be very few EFSA regulated brokers in Estonia, however that doesn’t make the regulatory body incompetent. There are some very high-profile forex brokers in Estonia offering investors competent and reliable platforms to choose from. But with so few to choose from, how do you know which one to go with? We have created a list of the top EFSA brokers to trade with, based on our own research and the feedback of our users.show more
The Financial Supervisory Authority (EFSA) is an independent regulatory agency in Estonia. The regulatory body was introduced and established in 2002 in accordance to the Estonian government and the Central Bank of Estonia. They felt the overwhelming need for an independent and self regulated organization to protect consumers and improve transparency and security among the financial markets. The EFSA has had extensive support from the ECB and MiFID, ensuring the unity of their policies and guidelines across the European continent.
Being the regulatory body of financial markets in Estonia, the EFSA has many responsibilities to maintain stable and secure financial markets. Their main responsibilities include the supervision of all non-banking institutions, as well as the overseeing of financial markets in Estonia. These markets include; various insurance related markets, securities, investments, fund management, e-payments, credit agencies, and Forex brokers.
With all these responsibilities comes some very important tasks and roles they must achieve. Some of their most important roles and responsibilities are as follows.
The licensing and regulation of non-banking financial institutions.
Protection of investors rights by ensuring transparency, security, and regulation of financial institutions.
The cooperation and coordination with other regulatory authorities in Europe such as the ECB and MiFID.
The spreading of investment culture, news, and awareness.
The Estonian Financial Supervisory Authority is in place to protect you, the investor. So how exactly does it serve to protect investors? Well, by focusing and fulfilling their numerous roles and responsibilities, the agency is able to provide investors with secure and transparent financial markets. They set numerous rules and regulations safeguarding investors against financial abuse and malpractices.
Investors in Estonia looking for a reputable broker should always seek brokers who are licenced and regulated by the EFSA to ensure maximum protection. Although licensing and regulation is not mandatory in Estonia, it is still recommended investors choose brokers who are.
Also, the EFSA not only provides regulation and licencing, but it presents news and knowledge to investors which informs and educates them. As well, they issue warnings about fraudulent brokerages who are not regulated by them.
EFSA regulated brokers are bound by law to comply with the professional and ethical rules that have been laid down by the regulator. This may include employment standards, technical requirements and recommendations, investment services offered, and more. As well, they are required to follow the rules and regulations outlined by European organizations such as the MiFID and the ECB. The brokerages are required by EFSA to submit annual audited reports ensuring there is no unlawful operations going on such as money-laundering.