Here is our list of top regulated forex brokers.
Broker | Features | Broker Reviews | Visit |
 | * 1:1000 leverage * 210+ instruments * $15 min. deposit * CySEC | ||
 | * 1:1000 leverage * 1200+ instruments * $50 min. deposit * CySEC | ||
 | * 1:500 leverage * 100+ instruments * FCA l | ||
 | * 1:500 leverage | ||
 | * 1:1000 leverage * 950+ instruments * Copy trading | ||
 | * Low deposit | ||
 | * Crypto trading * CySEC, FSA, FSC | ||
 | * 1:1000 leverage | ||
 | * 1:500 leverage * 10,000+ instruments * $200 min. deposit * CySEC | ||
 | * 1:1000 leverage | ||
 | * 1:500 leverage * FSCA | ||
 | *1:500 leverage | ||
 | * 1:400 leverage | ||
 | * 1:500 leverage * $100 min deposit * Crypto trading * CySEC | ||
 | * Crypto trading * SVG | ||
 | * 1:500 leverage * 300+ instruments * $50 min. deposit * VFSC | ||
 | * 1:500 leverage * 80+ instruments * $200 min. deposit * CySEC | ||
 | * 1:500 leverage * 1000+ instruments * $200 min. deposit * CySEC, FCA, ASIC | ||
 | * 1:1000 leverage * 130+ instruments * $5 min. deposit * CySEC |
The forex market is home to millions of new traders who, like you, need to know which brokers they can trust. By choosing a licensed forex broker, you can trade with more peace of mind, knowing that your money is in safe hands. Here we’ll discuss the main types of licences and what to look for when selecting a forex broker.
Why Are Forex Licences Important?
The forex market operates globally without its own regulator. This means that there is no single international authority that is responsible for overseeing what happens on the market. Without a single authority in control, it comes down to local regulatory bodies to supervise and monitor market participants. This is why licences are important.
Local regulators use licences to keep track of which companies are operating on the forex market. The regulators determine what constitutes acceptable behaviour and issue regulation that companies need to abide by. The licence acts as a record of agreement between the forex broker and regulator – it shows that the forex broker meets all the necessary regulatory requirements and agrees to abide by the relevant laws. After a regulator has issued a licence, it will carry out regular checks, to ensure that the forex broker is following the rules, and to issue penalties where appropriate.
The licence, and subsequent system of checks, therefore ensure that forex brokers treat their traders fairly and take measures to keep their money safe. It also helps forex traders find and choose responsible providers, making them less vulnerable to fraud.
What Are The Best Forex Licences?
There are many different forex licences available. A forex broker must apply for licences in the regions where it intends to operate, if licences are required for those particular countries. For example, a forex broker operating in the UK must apply to the Financial Conduct Authority (FCA), which is the UK’s local regulatory authority. Here is a list of some of the most well-known regulators:
- UK FInancial Conduct Authority (FCA) – Great Britain
- Cyprus Securities and Exchange Commission (CySEC) – Cyprus
- Australian Securities and Investments Commission (ASIC) – Australia
- Malta Financial Services Department (MFSA) – Malta
- Seychelles Financial Services Department (SFSA) – Seychelles
Why Use A Licensed Forex Broker?
If you want to trade forex then you will need to open a trading account and deposit funds. That means you need to pick a forex broker that you can trust to take care of your money and to give it back when you ask. The easiest way to find a trustworthy broker is to look for forex brokers with licences. Here’s why.
- Client fund safety – Licensed forex brokers always keep clients’ funds in separate accounts at top tier banks. They also offer other forms of client fund safety including negative balance protection, investor compensation schemes, and encrypted transactions.
- Business Ethics and Fair Practices – Licensed forex brokers are required to follow certain rules and regulations, as set out by their regulators. This ensures that forex brokers are required to ensure fair financial treatment and act ethically towards their clients.
- High Quality Trading Services – Licensed forex brokers are also required to meet certain service requirements and standards. This ensures that their clients get a high quality service with fast trade executions, reasonable pricing, no hidden fees, and transparency regarding their operational status.
- Deposit Insurance (Compensation Schemes) – Many licensed forex brokers take part in deposit protection programs. These programs are designed to protect clients and to compensate them if their forex brokers go out of business for a number of reasons. For example, the ICF and FSCS reimburse the clients up to €20000.
How To Choose A Forex Broker
- Regulation – The best brokers have licences from a reputable regulatory body. They are usually regulated by organisations such as the FCA (in the UK), CySEC (in Cyprus), the FSA (in Japan), ASIC (in Australia), or the MFSA (in Malta).
- Trading Conditions – The top forex brokers in Nigeria offer you a great selection of trading instruments. Look for brokers that also offer you the opportunity to trade with high leverage, low commissions, and fats trade execution.
- Minimum Deposits – The best forex brokers offer at least one low-cost account type. Look for brokers with an affordable minimum deposit, tight spreads, and with a wide selection of payment methods.
- Trading Support – The top forex brokers offer free market analysis, as well as trading tools such as economic calendars and pip calculators. Look for a broker that also offers access to advanced tools such as EAs and chart indicators.
- Forex Education – The top licensed brokers ensure you have all the educational resources you need to become a trader. They usually offer access to trading courses, educational videos, and forex guides, and forex webinars.
To find out more about the best forex brokers with licences, check out our forex broker reviews. To find out which brokers are offering the best promotions, take a look at our blog.