Basic concepts
FUNCTIONING
It is traded on the OTC market (Over The Counter for its acronym in English).
This market is of an informal type (unlike unified or regulated markets such as, for example, the stock market and the bank).
Currencies (known as Merado Forex), Commodities (Copper, Oil, Gold) and other types of assets such as Indices (such as the S&P) and Shares are traded in this market; under the form of Contracts for Difference (CFD for its acronym in English)
CFDs allow giving enormous liquidity to the market, since a certain asset rises or falls, it can generate profits if buy or sell positions were taken in favor of the trend.
Equally, and as in all types of investment transactions, returns are not guaranteed.
Market access is granted through a broker, which by definition is a company that offers the means to carry out transactions in the market, using related means such as computer software. In this case, the operator has access to the market through a third-party broker.
To understand in more depth, a Forex SOS link was attached, where everything related to this market is explained in detail.
Financial Conduct Authority
The FCA (Financial Conduct Authority) is an independent UK entity whose main purpose is to make sure that the financial markets work properly so that clients get a fair deal.
The pillars of the FCA's actions translate into:
Protect consumers
Protect financial markets
Promote free competition
The FCA regulates over 56,000 companies, checking that their practices comply with the demanding standards, in such a way that they reduce any potential damage to the industry and customers in the event of any failure.
More details on the FCA website: