There is no question as to the necessity of trading with regulated forex brokers. However, choosing the best regulated forex broker can be a difficult task. A regulatory authority assures the economic strength of the broker its compliance with the law. It proves that a forex broker will treat its client in a fair way. Without regulation, traders are left without any assurance about the safety of their funds. So before taking the decision of which regulated forex broker to trade with, have a look into their regulation and if they offer services to your country of residence. Brokers with more than one supervisory body should be considered above brokers with only one. What is more, the strength of the regulatory authority should be considered as a key factor when choosing the best regulated forex broker. Below is a regulated forex brokers list for you to choose from.

 

Regulated forex brokers list 

 

Forex Broker
Regulation
Min. Deposit
Leverage
Start Trading
FXTM
FXTM
CySEC, FCA,
FSCA, IFSC
$/€/£ 5
1:1000

Review
AAATrade
AAATrade
CySEC
$/€/£ 500
1:200

Review
Activtrades
ActiveTraders
FCA
$/€/£ 100
1:400

Review
Admiral Markets
Admiral Markets
FCA, CySEC, EFSA
$/€/£ 200
1:500

Review
ADS Securities
ADS Securities
UAE Central Bank,
FCA, SFC
$/€/£ 100
1:500

Review
Aetos
AETOS
ASIC, FCA
$/€/£ 250
1:400

Review
Alpari
Alpari
FSC
$/€/£ 5
1:1000

Review
XtreamForex
XtreamForex
FSPC
$/€/£ 5
1:1000

Review
Alvexo
Alvexo
CySEC
$/€/£ 500
1:300

Review
Amana Capital
Amana Capital
FCA, CySEC, DFSA
$/€/£ 50
1:500

Review
Avatrade
Avatrade
Bank of
Ireland,
ASIC, JFSA,
FSCA
$/€/£ 250
1:400

Review
AxiTrader
AxiTrader
ASIC, FCA
$/€/£ 0
1:400

Review
Ayondo
Ayondo
BaFIN, FCA
$/€/£ 100
1:200

Review
BDSwiss
BDSwiss
CySEC, FSC
$/€/£ 200
1:400

Review
CityIndex
CityIndex
FCA
$/€/£ 100
1:400

Review
CMC Markets
CMC Markets
FCA, ASIC,
FMA, IIROC,
MAS
$/€/£ 0
1:30

Review
CMTrading
CMTrading
FSCA
$/€/£ 200
1:200

Review
Core Spreads
Core Spreads
FCA
$/€/£ 0
1:200

Review
Darwinex
DarWinex
FCA
$/€/£ 500
1:200

Review
Dukascopy
Dukascopy
FINMA
$/€/£ 1000
1:200

Review
easyMarkets
easyMarkets
CySEC, ASIC
$/€/£ 100
1:30

Review
EightCap
EightCap
ASIC
$/€/£ 100
1:500

Review
Etoro
Etoro
CySEC,FCA,
ASIC
$/€/£ 200
1:30

Review
ETX Capital
ETX Capital
FCA
$/€/£ 100
1:30

Review
EverFX
EverFX
CySEC
$/€/£2 50
1:30

Review
Exness
Exness
CySEC, FCA
$/€/£ 1
1:200

Review
FBS
FBS
IFSC, CySEC
$/€/£ 100
1:3000

Review
FIBO Group
FIBO Group
FSC, CySEC
$/€/£ 0
1:1000

Review
Forex.com
Forex.com
FCA, IIROC,
ASIC, CFTC
$/€/£ 50
1:200

Review
Fortrade
Fortrade
FCA
$/€/£ 100
1:100

Review
FP Markets
FP Markets
ASIC
$/€/£ 200
1:400

Review
FXCC
FXCC
CySEC
$/€/£ 500
1:200

Review
FXCM
FXCM
ASIC, FCA
$/€/£ 50
1:200

Review
FXDD
FXDD
MFSA
$/€/£ 100
1:100

Review
FXGlory
FXGlory
BoG
$/€/£ 1
1:3000

Review
FxGrow
FXGrow
CySEC ng>
$/€/£ 100
1:200

Review
FXOpen
FXOpen
FCA
$/€/£ 1
1:500

Review
FXPrimus
FXPrimus
CySEC, FSCA,
VFSC
$/€/£ 100
1:200

Review
FXPro
FXPro
FCA, CySEC,
SCB, FSCA,
DFSA
$/€/£ 500
1:500

Review
GKFX
GKFX
FCA
$/€/£ 20
1:400

Review
Halifax
Halifax
ASIC
$/€/£ 0
1:500

Review
HotForex
HotForex
CySEC
$/€/£ 50
1:500

Review
HYCM
HYCM
FCA, CySEC
$/€/£ 100
1:200

Review
IC Markets
IC Markets
ASIC
$/€/£ 200
1:500

Review
IFC Markets
IFC Markets
CySEC,
BVI FSC
$/€/£ 1
1:400

Review
IG
IG Group
FCA, ASIC,
CFTC, FINMA,
MAS, JFSA, DIFC
$/€/£ 250
1:30

Review
Instaforex
InstaForex
CySEC, FSC
$/€/£ 1
1:1000

Review
Interactive Brokers
Interactive Brokers
US SEC & CFTC,
ASIC, FCA
$/€/£200
1:400

Review
JFD Brokers
JFD Brokers
CySEC, FCA,
BaFIN,
CONSOB
$/€/£ 500
1:400

Review
London Capital Group
London Capital Group
FCA, CySEC
$/€/£ 0
1:500

Review
Libertex
Libertex
CySEC
$/€/£ 10
1:500

Review
Markets.com
Markets.com
CySEC
$/€/£ 100
1:300

Review
OANDA
OANDA
FCA, MAS,
ASIC, IIROC
$/€/£ 0
1:50

Review
Orbex
Orbex
CySEC
$/€/£ 500
1:500

Review
Pepperstone
Pepperstone
FCA, ASIC
$/€/£200
1:200

Review
Plus500
Plus500
FCA, CySEC,
ASIC, MAS
$/€/£ 100
1:30

Review
Rakuten Securities
Rakuten Securities
ASIC,
SFC
$/€/£ 50
1:200

Review
RoboForex
RoboForex
CySEC, IFSC
$/€/£ 10
1:1000

Review
RubixFX
RubixFX
ASIC
$/€/£ 200
1:400

Review
Saxo Bank
Saxo Bank
FSA, MiFID
$/€/£ 2000
1:100

Review
Spread Co
Spread Co
FCA
$/€/£ 500
1:200

Review
Spreadex
Spreadex
FCA
$/€/£ 0
1:200

Review
SVSFX
SVSFX
FCA
$/€/£ 100
1:400

Review
Swissquote
Swissquote
FINMA, FCA,
MFSA, SFC,
DFSA
$/€/£ 1000
1:100

Review
Tickmill
Tickmill
FCA, FSA,
CySEC
$/€/£ 25
1:200

Review
TradeMax
TradeMax
ASIC
$/€/£ 1000
1:400

Review
Tradersway
TradersWay
Not
Regulated
$/€/£ 0
1:1000

Review
trade.com
Trade.com
CySEC, MiFID
$/€/£ 100
1:300

Review
Trading 212
Trading 212
FCA
$/€/£ 100
1:300

Review
UFX
UFX
CySEC, FCA,
FSA,
CNMV, BaFIN
$/€/£ 100
1:400

Review
USGFX
USGFX
ASIC
$/€/£ 100
1:500

Review
Valutrades
Valutraders
FCA
$/€/£ 50
1:500

Review
Vantage FX
Vantage FX
ASIC
$/€/£ 200
1:500

Review
Windsor Brokers
Windsor Brokers
CySEC, IFSC
$/€/£ 500
1:50

Review
XM
XM
CySEC,
FCA, ASIC
$/€/£ 5
1:500

Review
XOpen Hub
XOpen Hub
FCA
$/€/£ 100
1:200

Review
XTB
XTB
FCA
$/€/£ 250
1:200

Review
XTrade
XTrade
CySEC, IFSC
$/€/£ 200
1:30

Review
ForexChief
ForexChief
VFSC g>
$/€/£ 1
1:400

Review
Grand Capital
Grand Capital
CRFIN, KROUFR
$/€/£ 10
1:2000

Review
Amarkets
Amarkets
SVGFSA
$/€/£ 1
1:500

Review

 

 

Why choose to trade with a regulated forex broker?

Considering that the forex market is decentralized and unregulated, you might wonder why you should only choose to trade with regulated forex brokers. Regulations exist in a market to ensure that the parties involved conduct their business in a fair and ethical manner. By regulating fx brokers, banks, institutional investors and support industries, traders and investors can feel safe and have the confidence to invest in the forex market. This way growth and stability is nurtured across the industry.

A forex broker must be registered and licensed by the regulatory body that is in charge of regulating forex trading and speculative, high leveraged products in the country that they want to operate in. Apart from the need to be licensed, regulated forex brokers are also required to submit regular audits in order to ensure that they meet the regulatory requirements and comply with industry standard. For example, most forex regulatory bodies will require that the broker holds sufficient liquid capital is able to execute and complete the forex contracts initiated by their clients. In addition, the broker must also be able to return all its clients’ money in the event it becomes insolvent.

 

What is a Forex Regulation?

The foreign exchange market or forex market for short, is the largest example of a free market at work. The daily turnover is approximately more than 4 trillion dollars worth of transactions. However, despite the amount of money that flows through the forex market, it is an OTC (Over the Counter) market and is unregulated in most parts of the world. The forex market is decentralized and there is no central exchange that is specially geared towards the handling of forex transactions. Even with the decentralized and unregulated nature of the forex market, trading on an institutional basis poses no problems due to the fact that the parties involved trust each other.

Nevertheless, as forex trading becomes more accessible and popular among retail traders, it also becomes more prone to fraud. In order to counter fraudulent activities in the forex markets, many countries have set legislation in place to regulate forex trading activities. This is done by requiring forex brokers to be regulated by regulatory agencies such as the UK’s Financial Conduct Authority (FCA) and the National Futures Association in the US (NFA). Within their respective reach, these regulatory agencies act as the watchdog for traders dealing with forex brokers operating under their jurisdictions and geography.

 

Major Regulatory Bodies

Forex regulation differs from country to country. Each regulatory body, has its own specific regulatory requirements and its area/geography of jurisdictions. Enforcement policies also vary from region to region. In major financial centers such as London and New York, the regulatory agencies are considered to be more strict in enforcing regulatory requirements, due to the need to protect the reputational integrity of the financial industry for that region. However, that is not always the case. As the industry attracts more interest, the need for more strict measures and regulation becomes prominent across the globe.

Below are some of the major regulatory bodies which every forex trader should be aware of:

  1. Australia: Australian Securities and Investment Commission (ASIC)
  2. Canada:
  • British Columbia Securities Commission
  • Ontario Securities Commission
  • Investment Industry Regulatory Organization of Canada (IIROC)
  1. Cyprus: Cyprus Securities Exchange Commission (CySEC)
  2. Denmark: Danish FSA
  3. France:Banque de France Autorité de Contrôle Prudentiel (ACP)
  4. Germany: Bundeszentrale für Finanzdienstleistungsaufsicht (Bafin)
  5. Hong Kong SAR: Securities and Futures Commission
  6. Indonesia: Badan Pengawas Perdagangan Berjangka Komoditi
  7. Italy: Commissione Nazionale per le Società e la Borsa
  8. Japan:
  • Financial Services Agency,
  • Japan Investor Protection Fund
  • The Financial Futures Association of Japan
  • Japan Securities Dealers Association
  • Kanto Local Finance Bureau
  1. Russia: The Commission on Regulation of Financial Markets Participants Relationships
  2. Singapore:
  • Licensed clearing member of the Singapore Exchange
  • Monetary Authority of Singapore
  1. Spain: Comisión Nacional del Mercado de Valores
  2. Sweden: Swedish Financial Supervisory Authority (Finansinspektionen)
  3. Switzerland:
  • Groupement Suisse des Conseils en Gestion Indépendants
  • Polyreg
  • Association Romande des intermediares financiers
  • Swiss Federal Department of Finance
  • Organisme d’autorégulation fondé par le GSCGI
  • Commission fédérale des banques
  • Swiss Financial Market Supervisory Authority (FINMA)
  1. Turkey: Capital Markets Board of Turkey (CMB)
  2. United Arab Emirates: Dubai Multi Commodities Centre
  3. United Kingdom: Financial Conduct Authority (FCA)
  4. United States:
  • Financial Industry Regulatory Authority, Inc.
  • New York Stock Exchange
  • Office of the Comptroller of the Currency
  • Securities and Exchanges Commission
  • Commodities and Futures Trading Commission
  • National Futures Association

 

It should be noted that member countries in the European Union (EU) share a common regulatory framework under the Markets in Financial Instruments Directive (MiFID) passed by the European Parliament. The objective of the directive was to harmonize the regulation of financial services providers operating within the European Economic Area (EEA). This means an EEA authorized forex broker will be able to “passport” its services legally to another member state through the authorization obtained from its home country. For example, a CySEC regulated forex broker is permitted to operate in the UK by “passporting” its CySEC license to the UK’s FCA.

 

How can regulations protect you?

Regulations play a huge role in protecting investors interest as they traverse through financial service providers such as forex brokers, and prompt them to act in a fair, ethical and compliant manner.

  • A major requirement of every regulator is the segregation of funds of clients funds. Forex Brokers must maintain segregated accounts for their clients’ fund and their own operational funds in order to prevent possible abuse by the broker. Moreover, should a broker become bankrupt, its creditors are not allowed to tap into the broker’s clients fund as settlement of the broker’s debt.
  • Another important regulatory requirement imposed by the regulatory bodies, is the requirement that forex brokers warn their potential clients of the high risk involved in forex trading and high leveraged products. This rule was put in place to forewarn traders that they face a possibility of losing all their investments due to the risks involved.
  • Based on the above requirement, brokers must categorize their clients either retail investors or professional/institutional investors. This is due to the fact that professional investors are regarded as experienced traders with great awareness of the risks involved in trading forex. As such, brokers have to make additional efforts to educate their retail clients of the nature of risks involved with forex trading.
  • Another way which regulations protect retail traders is the leverage which forex brokers are permitted to offer to their clients. Forex brokers in the U.S are only permitted by the NFA to offer their clients a maximum of 1:50 leverage ratio. Forex Brokers in the EU need to test their clients with the use of general assessment tests, in order to specify how much leverage they can use.
  • Furthermore, regulators provide a level of protection to the investors by guaranteeing a certain amount of compensation, should the broker become insolvent. For instance CySEC provides compensation to the tune of 20,000 EUR for deposits lost.

 

Regulatory requirements from regulated brokers

As mentioned earlier, the regulatory requirements for forex brokers vary from region to region. Although the specific details of the regulatory requirements may vary from region to region, there are some commonalities observed across all regulatory agencies:

  • Brokers are required to maintain sufficient liquidity to meet all contractual obligations.
  • Brokers are required to maintain segregated accounts.
  • Brokers are required to submit regular audits to verify their compliance on their capital adequacy ratio.
  • Leverage ratios are capped to a certain limit.

 

Conclusion

There is no doubt that investors can benefit from trading with a regulated broker, as opposed to trading with an unregulated broker. To help investors verify the regulatory status of a broker, most regulatory agencies maintain an online database which investors can access in order to verify whether a broker is truly regulated by the specific agency. We have researched deeply into the very best regulated forex brokers in the market and can save you the trouble of searching for yourself. Here is a list of the best regulated Forex brokers , with a view to their reliability, technology, service standards and ancillary products.