Investing term

What is Regulator?

The national authority that licenses brokers and enforces investor-protection rules.

A regulator is the national authority that licenses brokers and investment firms, enforces the rules, and protects investors — the SEC in the US, the FCA in the UK, and equivalents elsewhere. Using a broker overseen by a strong regulator is a basic safety check: it means rules, audits, and usually a protection scheme stand behind your account.

For example

Before funding an account you confirm the broker is licensed by a recognized regulator — the difference between a supervised firm and the wild west.

Regulator is taught hands-on in Stage 7 — Brokers, Accounts & Getting Started.

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Related terms

Account statementThe monthly or quarterly document summarising your account activity, balances, and realized gains.BrokerThe licensed firm you go through to buy and sell investments on an exchange.Brokerage accountThe account you open at a broker to hold your investments.CommissionThe per-trade fee some brokers charge to execute an order.
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