Forex brokers registered in Estonia are required to be regulated by the Estonian Financial Supervision Authority (EFSA). However, as an EU country, Estonia also allow forex brokers that are regulated in any other EU country to operate on its territory without being directly licensed by the EFSA. This is the main reason why very few forex brokers today are directly overseen by the Estonian financial regulator. As with all other EU countries, forex brokers in Estonia are also subject to regulations from the European Securities and Markets Authority (ESMA).
With so few registered forex brokers in Estonia, it can be hard to see why one would sign up with any of them. However, Estonian forex traders may find that there are certain benefits with using a locally regulated forex broker, such as being able to complain to one’s own government agency if any dispute were to occur.