MTR Regulation & Best Estonia Forex Brokers

If you’re wondering where you can find the best brokers regulated by MTR, this page will tell you all you need to know. Our experts are here to give you background information on MTR, including what MTR is and why you should be aware of it.

Holding the title of one of the smallest EU countries, with a relatively small population and a surprisingly small presence, Estonia is nevertheless embracing the world of forex trading. The number of brokers in Estonia is not as large as many other European Union member states, but it looks like things are changing.

One of the reasons there are so few MTR regulated brokers is the passing of MiFID (Markets in Financial Instruments Directive). This Act allows brokers licensed by other EEA regulatory bodies to offer services in other member states.

If you can’t find many MTR regulated brokers, try some of the best CySEC regulated brokers:

• Hot Forex
• XTB
• HYCM
• XM
• Plus500
• FXTM

Finding the best MTR/EFSA regulated brokers

You may find your choice of broker a little limited when you’re looking for brokers in Estonia. You should, however, be able to find yourself an MTR regulated broker offering a good trading platform. There are even a couple of mainstream brokers currently offering their services in Estonia.

Be very careful when looking for an EFSA/MTR regulated broker as there a number who claim to be licensed when they clearly aren’t. It is easy to be caught out if you don’t perform due diligence. It is important to check out any claims a broker may make with regards a license. There is a search function on the EFSA website for your convenience.

Don’t forget that you can also access EEA-authorized markets from Estonia. For example, you can use top CySEC regulated brokers such as XTB and HYCM.

About MTR/EFSA regulated brokers – and whether they’re safe

The Estonian Financial Supervision Authority (EFSA) is responsible for regulating financial markets and performs several functions to achieve its goals. It was formed in 2000 when the Estonian government and the Central Bank decided there was a need for an independent organization responsible for regulating financial entities. The main purpose of its creation was to protect the consumer. Plus, another advantage would be the overall improvement in the transparency of the financial sector.

The EFSA has been able to introduce a number of policies designed to safeguard investors and reduce financial abuse and malpractice. The regulations are in compliance with MiFID.

What is MiFID?

MiFID is a European Economic Area piece of legislation which provides a framework of EU legislation, with regards to the provision of investment services. The idea behind the legislation is to provide the environment for harmonized regulation of investment services across EEA member states. The policies of the EFSA satisfy the regulatory framework and its standard set of guidelines.

The EFSA is not a government agency. It operates as an independent, agency financed through membership fees and fines – not taxpayers money. The EFSA is considered an authentic, reliable and well-respected regulatory broker. While it may not go above and beyond, like some more renowned regulators, it nevertheless meets the necessary standards to operate in accordance with MiFID.

What is MTR?

MTR stands for Majandustegevuse Register, which is an online resource that was developed by the Ministry of Economic Affairs and Communications (Majandus-ja Komminikatsiooniministeerium). This government ministry of Estonia is located in Tallinn.

What is the role of the MTR?

Using a very simple search option, it is easy to find details of MTR regulated brokers. This makes it possible for you to check the reliability of any MTR regulated broker before you sign up and open an account.

There’s really not a lot we can say about the register, so carry on reading and we’ll give you some information about the EFSA – as well as some useful tips and hints for trading safely in Estonia.

What support is available for traders in Estonia?

In a very similar way to a number of other regulatory bodies, the EFSA does not include direct intervention between a broker and a client. No assistance or arbitration services are available for an investor to make a complaint.

It does, however, provide an excellent consumer education portal, muniraha.ee, with heaps of great advice covering many different areas, including brokers in Estonia. Visit it to find advice and information on:

• Financial products
• Investment advice
• Insurance guidelines
• Calculators
• Tools to help investors make the best decisions

The EFSA may not be one of the better known regulatory agencies, but there are alternatives available as Estonia is a member of the European Economic Area. As such, an EFSA regulated broker will also operate in accordance with MiFID, allowing it to offer services in all member states. And a broker regulated in another EEA member state is allowed to provide its services in Estonia. This privilege is known as passporting rights.

Why it’s important to choose a regulated broker – and how to look for proof

There is a lot of risk in choosing a broker that is unregulated. Forex trading is a risky enough investment without adding another risk factor. Regulated forex brokers will give you some peace of mind because they should be following recognized guidelines and providing a certain level of service.

There will be a lot of restrictions in place regarding the operation of a regulated broker, most of which were developed with consumer protection in mind. One of these is the use of segregated accounts, which means your funds can’t be used for anything other than trading. Should there be a problem with a regulated broker the regulatory authority will often step in and try and resolve the situation. And if the broker is found to be breaking the rules and regulations it will be liable to sanctions, possibly a fine, or even at risk of losing its license.

Checking for licenses

When you visit a broker’s website, they’ll usually make it very simple for you to find their license numbers and information. This may be a single license or they may have several. However, some brokers like to use outdated or entirely fictional information, as it makes them look more trustworthy when they’re associated with recognized regulators.

So, how can you tell if a broker is being honest about their license? That’s easy – check the Majandustegevuse Register. If your broker’s name appears on there, you know their license is legitimate.