BrokerForexReviews

Forex Broker Regulation

24 regulators covered across 72 countries. Every broker on this site has its licence number verified on the official public register.

Why regulation matters

A regulated broker must keep client funds in segregated accounts separate from company money. If the broker goes bankrupt, your money is not lost with it. Tier 1 regulators (FCA, ASIC, CySEC) also offer compensation schemes — up to £85,000 in the UK under the FSCS.

Offshore regulators (IFSC, SCB) allow higher leverage — up to 1:500 — but offer less client protection. There is no compensation scheme. Your money is at higher risk if the broker fails.

Tier 1 — Highest Protection
FCA Tier 1
Financial Conduct Authority — United Kingdom
9 brokersMax leverage: 1:30
Strict conduct rules, FSCS compensation up to £85,000, mandatory negative balance protection. Highest standard globally.
ASIC Tier 1
Australian Securities & Investments Commission — Australia
12 brokersMax leverage: 1:30
Australia's top financial regulator. Segregated accounts required. Covers 36 pages in AU and NZ. Strong enforcement record.
CySEC Tier 1
Cyprus Securities and Exchange Commission — Cyprus / EU
9 brokersMax leverage: 1:30
EU MiFID II framework. ICF compensation up to €20,000. A CySEC licence is valid in all EU member states via passporting.
BaFin Tier 1
Federal Financial Supervisory Authority — Germany
3 brokersMax leverage: 1:30
German regulator, known as one of the strictest in the EU. Full MiFID II compliance. Very high reputation among institutional clients.
MAS Tier 1
Monetary Authority of Singapore
5 brokersMax leverage: 1:20
Singapore's central bank and financial regulator. Strict rules for retail forex. Key regulator for Asia Pacific operations.
JFSA Tier 1
Japan Financial Services Agency
3 brokersMax leverage: 1:25
Japan's main financial regulator. JFSA-regulated brokers must hold large capital reserves. Very strong client protection in Japan.
CFTC Tier 1
Commodity Futures Trading Commission — United States
2 brokersMax leverage: 1:50
US regulator. CFTC/NFA-regulated brokers face strict capital requirements ($20M minimum). Very few international brokers qualify.
IIROC Tier 1
Investment Industry Regulatory Organization of Canada
2 brokersMax leverage: 1:33
Canada's national self-regulatory organisation. Strong client protection, mandatory CIPF membership for investor compensation.
Tier 2 — Strong Regional Regulators
DFSA Tier 2
Dubai Financial Services Authority — DIFC, UAE
3 brokersMax leverage: 1:30
Regulates brokers operating from the Dubai International Financial Centre. Strong regional reputation, key for MENA clients.
FSCA Tier 2
Financial Sector Conduct Authority — South Africa
5 brokersMax leverage: 1:200
South Africa's conduct authority. FSCA-regulated brokers are legitimate for African clients. Higher leverage than EU regulators.
CMA Tier 2
Capital Markets Authority — Kenya
3 brokersMax leverage: 1:100
Kenya's capital markets regulator. Growing importance for East African clients. Brokers must maintain local offices.
FSA Tier 2
Financial Services Authority — Seychelles
5 brokersMax leverage: 1:500
Seychelles regulator allowing higher leverage than EU. Weaker client protection than Tier 1 but not pure offshore. Commonly used for global operations.
ADGM Tier 2
Abu Dhabi Global Market — UAE
1 brokerMax leverage: 1:30
Abu Dhabi's international financial centre regulator. Similar standards to DFSA. Prestigious licence for MENA institutional clients.
ISA Tier 2
Israel Securities Authority
1 brokerMax leverage: 1:100
Israel's securities regulator. Has banned retail forex CFDs domestically. ISA-regulated brokers mainly serve institutional clients internationally.
Tier 3 — Offshore Licences (Higher Leverage, Less Protection)
IFSC Offshore
International Financial Services Commission — Belize
1 brokerMax leverage: 1:500
Belize offshore regulator. Low capital requirements, no compensation scheme. Used to serve clients who cannot access EU-regulated brokers.
SCB Offshore
Securities Commission of the Bahamas
1 brokerMax leverage: 1:500
Bahamas offshore licence. No EU or UK client protection rules apply. Higher leverage available but no investor compensation fund.
FSC Offshore
Financial Services Commission — Mauritius
1 brokerMax leverage: 1:1000
Mauritius offshore regulator. Very high leverage permitted. Often used as a global entity alongside a Tier 1 EU or AU licence.
BVI-FSC Offshore
Financial Services Commission — British Virgin Islands
1 brokerMax leverage: 1:500
BVI offshore licence. Used by brokers serving non-EU, non-AU clients who want access to higher leverage products.
How to verify a licence: Every regulator maintains a public register. Search the broker's entity name on the FCA register at register.fca.org.uk, CySEC at cysec.gov.cy, or ASIC at moneysmart.gov.au. The licence number in the review must match the official record exactly.