The regulation of the Forex space around the world has been getting stronger over time. This is because the regulatory entities have reinforced their rules in order to combat crimes such as money laundering or the financing of terrorism.
However, the topic of affiliates and introducing brokers (IBs) has always remained a gray area where the laws do not fully govern it, at least in the vast majority of jurisdictions globally.
The market for Forex and CFD affiliates is a very large one and moves millions of dollars for brokers worldwide. The importance given to this niche is so great that many brokers have focused their marketing strategies on strengthening this front within their line of business, prioritizing them above others.
In this analysis, we talked to two experts in the field who will give us their thoughts on the question: should Forex and CFD affiliates be regulated?
Regulatory Scheme in Specific Regions
Giancarlo Lionti, Global Head of Affiliate Marketing at Skilling, believes that the environment should be regulated and provided the following reasons: “Considering the increasing number of requirements coming from the Financial Regulators and the limited control that a CFD Broker can have on its affiliates’ businesses, I would personally support the regulation of the Affiliate Business in Forex & CFD trading. It’s not rare that publishers and marketers don’t follow the indications provided by the regulated brokers they work with and, in my opinion, it is not fair that a Broker can get in regulatory and financial troubles for something that is not 100% under its control.”
He added that this would reduce the internal cost of time and resources required to run…