Regulation is very important when choosing a broker. Before you start trading, you should know if your trades are protected from fraud by your broker. It is the presence of regulation that gives you some protection. We present to your attention a list of the most popular regulated brokers.
Who is a regulated FX Broker?
The Forex broker with regulation is the institution that connects you to the online currency exchange. They work with liquidity providers like large banks that are considered FX dealers. Each country or group of countries has its own regulatory structures. The broker receives a license for official work in the country. A list of countries and their regulatory structures can be found here
Top 10 Regulated Forex brokers For your country:
Updated October, 2020
Regulation: CySEC, FCA, IFSC
Regulation: BVI FSC, CySec
Regulation: MiFiD, CBI, FSA, ASIC, SFB, BVI, FSCL
Regulation: IFSC, CySEC
Regulation: ASIC, CySEC, IFSC
Regulation: FSC Mauritius
Regulation: FCA, CySEC, MAS, IE, ASIC, AFSL, FMA, FSP
Regulation: FCA, CySEC, ASIC
* Amount to be credited only for a successful outcome.
List of the most popular regulators among brokers
You can see the full list of broker licenses under the registration button, and we will list the most popular licenses that Forex brokers choose.
The Financial Conduct Authority (FCA) is a financial regulatory body in the United Kingdom, but operates independently of the UK Government, and is financed by charging fees to members of the financial services industry. The FCA regulates financial firms & Forex brokers providing services to consumers and maintains the integrity of the financial markets in the United Kingdom.
An independent non-governmental body, the financial conduct authority, is responsible for regulating the UK financial services industry.
The financial conduct authority (FCA) was created in 2013 under the financial services act (2012) and replaced the financial services authority (FSA). The FCA was introduced with a new regulatory framework and a mandate to support both the stability of the UK's financial markets and the safe conduct of its financial services firms. The FCA's regulatory body includes the Bank of England's prudential regulation authority (another successor to the FSA) and the financial policy Committee. The FCA is responsible for running around 58,000 businesses, employing 2.2 million people, and contributes around £ 65.6 billion in annual tax revenue to the UK economy.
The Cyprus securities and exchange Commission, better known as CySEC, is the financial regulatory authority of Cyprus. As an EU member state, Cysec's financial regulations and operations comply with the European financial harmonisation act MiFID.
A significant number of foreign retail Forex brokers and binary options brokers have been registered with CySEC. This license allows brokers to work with clients from the European Union. All Forex brokers licensed by CySEC are required to comply with the list of Rules and guidelines set by the authorities. They must work transparently and fairly, following the regulatory framework of Cyprus and the EU. Of course, the guidelines are constantly updated to ensure that they can adequately protect investors.
To provide brokerage services in the Forex market, companies need to obtain a license from a Cyprus investment firm. To be approved, they must have and maintain at least 750,000 euros of operating capital. This is a relatively new requirement, and its goal is to provide brokers with sufficient capital to hold their clients positions without the risk associated with market volatility.
The Australian securities and investments Commission (ASIC) is an independent Commission of the Australian government that serves as the national corporate regulator. ASIC's role is to regulate companies and financial services and enforce laws to protect Australian consumers, investors and lenders, including the regulation of Forex brokers. ASIC was created on July 1, 1998, following the recommendations of the Wallace investigation. The powers and scope of ASIC's are defined by the Australian securities and investments Commission act 2001. As you can understand, brokers who are licensed by this regulatory authority have the opportunity to work with clients from Australia.
FOREX brokers regulated by ASIC are known for strict compliance with procedures and high reliability, as regulation protects and ensures reliable security of funds along with a guarantee from Australian banks.
In addition, ASIC is known for its friendly attitude to consumers, offering a wide range of free online resources with information about financial markets and recommendations for consumers about investing, its pros and cons, and much more. As a result, there is a growing number of companies opening their offices in accordance with ASIC rules, as well as a growing popularity among traders of investments in firms regulated by Australia.
Unfortunately, Belize has developed a reputation for being a bit soft on regulating financial service providers. A number of more well-known regulators, such as the FCA in the UK and the CFTC in the US, impose much stricter requirements on financial service providers. The European markets in financial instruments Directive (MiFID) has also been criticized by experts who claim that it does not provide sufficient protection for investors. Despite this you may have noticed that most brokers have multiple licenses which increases the chances of choosing a more reliable broker.