Yes, it is true that once upon a time, especially in the first decade of the new millennium, that the online forex trading industry was subject to scams. It cannot be denied that there were some scam forex brokers, setting up shop in unregulated jurisdictions, enrolling several traders and soon after disappearing with millions of dollars of client’s money and unpaid taxes. But now there are strict controls, much stricter than in the past.

Nowadays, trading with supervised and regulated brokers means minimising all risks, thanks also to demo accounts and brokers with low or no minimum deposit, although it is true that online trading is not for everyone.

With a forex demo account, and without risking any money, you can see how the markets behave, what drives the market up or down, and test how the trading platforms perform.

KEY TAKEAWAYS

  • Currently, the gold standard for financial regulators is the Tier-1 United Kingdom Financial Conduct Authority (FCA).
  • Regulated forex brokers in Europe (by the FCA, CySEC, BaFin, Consob, etc.) offer an Investor Compensation Fund for retail traders deposits.
  • Regulated forex brokers, in Europe and by Australia’s ASIC, have negative balance protection and a leverage cap of 30:1 on forex CFDs, for retail traders.
  • Clients classified as "Professional" can apply for higher leverage ratios, up to 400:1, but are not covered by the "Retail" client protection mechanisms (NBP & ICF).


As an investor, your number one priority when choosing an online broker, should be client money protection. Regulated forex brokers have to comply with strict rules set by the financial authorities, regarding safety of funds.

Not only that, but financial regulators that are apprehensive about retail traders' losses with CFDs trading, have implemented a series of protection mechanisms to minimise the impact of such losses.

Financial Regulators Overview

Like a trader chooses a broker for what they offer, brokers also choose the jurisdiction and the financial regulator to supervise their activities for what they offer... or not. With the financial regulators overview table below (ordered alphabetically), you can easily compare how different regulators across the globe are rated for their level of protection to retail traders.

Country/Regulator Rating Segregated Client Money Investor Compensation Fund (ICF) Negative Balance Protection (NBP) Maximum Leverage for Retail Clients
Australia ASIC
4.0
30:1
Belize IFSC
2.0
400:1
Bermuda BMA
2.0
500:1
Canada IIROC
5.0

up to $CAD 1 million
50:1
Cyprus CySEC
5.0

up to €20,000
30:1
Mauritius FSC
2.0
500:1
Seychelles FSA
2.0
--
South Africa FSCA
3.0
200:1
Switzerland FINMA
5.0

up to CHF 100,000
30:1
Saint Vincent and the Grenadines FSA
2.0
--
UAE DFSA
4.0
50:1
UK FCA
5.0

up to £85,000
30:1
USA NFA
4.0
50:1
Vanuatu VFSC
2.0
1000:1

If you would like to know more about each authority body, we suggest a quick visit to our Financial and Forex Regulators article were we cover the main regulators goals and powers, and what is the Investor Compensation Fund.

As you can deduct from the table above, different jurisdictions, different levels of retail client protection. You can also see that several regulators fail to implement the most basic rule of client's money protection: segregated accounts. This means that brokers, regulated by those supervisory authorities, are free to use client's deposits for any operational expenses, or other company purposes, which in turn, can have a series of financial implications in the relationship client/broker.

To help you make an informed decision, our team of industry analysts compiled a list with the most popular brokers, highlighting the entity name, licence & regulation, client money protection mechanisms and maximum leverage available for retail clients. You can also check the current regulatory status of each entity by clicking the "Licence & Regulation" link. Here are our top 10 regulated forex brokers in 2021.


Admirals broker

Admirals Regulations

Main Features
  • Regulated in the EU, the UK and Australia
  • Stock trading with as little as €1
  • 8 asset classes, including 3,300+ stocks CFDs

Founded in 2001, the Admiral Markets Group, is a leading online trading broker, regulated by two Tier-1 jurisdictions (UK FCA and Cyprus CySEC) and one Tier-2 jurisdiction (Australia's ASIC), which translates in a safe choice for retail investors looking for fund's safety. Admirals client's funds are kept in top-tier international banks and fully segregated from the company’s own operating capital.

Admirals Regulations & Client Money Protection Mechanisms

5.0

Entity Name Licence & Regulation Segregated Client Money Deposit Compensation Scheme Negative Balance Protection Maximum Leverage
Admiral Markets Pty Ltd (AU) Australia ASIC Licence 30:1
Admiral Markets Cyprus Ltd (EU) Cyprus CySEC Licence
up to €20,000
30:1
Admiral Markets UK Ltd UK FCA Licence
up to £85,000
30:1

Opening a trading account with Admirals (formerly Admiral Markets), is possible with any of its three highly-regulated entities. Let's see the regulations of each entity separately:

  • Australian regulation: the counterparty is the Admiral Markets Pty Ltd entity, trading as Admirals, and regulated by the Australian Securities & Investments Commission (ASIC), with licence ASFL 410681.
  • European regulation: the counterparty is Admiral Markets Cyprus Ltd, a company registered as a Cyprus Investment Firm (CIF), authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) with number 201/13.
  • UK regulation: the counterparty will be the Admiral Markets UK Ltd entity, also trading as Admirals, a company registered in England and Wales, authorised and regulated by the FCA with licence number 595450.

This excellent broker is regulated by three top-tier financial authorities, and is probably one of the oldest household names in the online trading sphere, thanks to an industry-leading offering of educational materials on their website. Contrarily to several of its counterparties, Admirals does not offer CFDs trading with entities registered in off-shore jurisdictions. Overall, Admirals is the best option for traders searching for a reputable broker with strong regulations in place and safety of funds. But also, Admirals is the best option for its robust research centre and great trading tools.



For a closer look at Admirals regulations, and for our professional opinion about this broker, please read the full Admirals review.



AvaTrade broker

AvaTrade Regulations

Main Features
  • Regulated in Ireland, Australia, Japan, UAE and South Africa
  • No fees on deposits & withdrawals
  • 8 asset classes, including 600+ worldwide stocks for trading

Founded in 2006, as a multi-national company, AvaTrade has headquarters in Dublin and regional offices, and sales centres, in Paris, Dublin, Milan, Tokyo and Sydney. AvaTrade complies with the best policies regarding client's deposits, and customer funds are kept in top-tier international banks, such as ANZ Bank, Danska Bank and NatWest Bank, fully segregated from the company's funds.

AvaTrade Regulations & Client Money Protection Mechanisms

5.0

Entity Name Licence & Regulation Segregated Client Money Investor Compensation Scheme Negative Balance Protection Maximum Leverage for Retail Clients
Ava Trade EU Ltd (EU) Central Bank of Ireland Licence
up to €20,000
30:1
Ava Capital Markets Australia Pty Ltd (AU) Australia ASIC Licence 30:1
Ava Trade Japan K.K. (JP) Japan FSA Licence 25:1
Ava Capital Markets Pty (South Africa) South Africa FSCA Licence 30:1
Ava Trade Middle East Ltd (Abu Dhabi) Abu Dhabi FRSA Licence 30:1
Ava Trade Ltd (BVI) BVI FSC Licence 400:1

AvaTrade has several regulated entities, but to help you choose the right one, we will consider the main six. Let's take a closer look at each regulated entity:

  • For European customers: the counterparty is Ava Trade EU Ltd, incorporated in Ireland and regulated by the Central Bank of Ireland, and also covered by the ICF.
  • For Australian clients: the counterparty is the Ava Capital Markets Australia Pty Ltd entity, trading as AvaTrade, and regulated by the Australian Securities & Investments Commission (ASIC), with licence ASFL 406684.
  • For Japanese clients: the counterparty is Ava Trade Japan K.K., licensed and regulated in Japan by the Financial Services Agency, with licence number 1662.
  • In South Africa: AvaTrade is represented by Ava Capital Markets Pty, a company authorized and regulated by South Africa's Financial Sector Conduct Authority (FSCA) with a financial services provider licence, number 45984.
  • For Middle-East customers: the counterparty is Ava Trade Middle East Ltd, regulated by the Abu Dhabi Global Markets (ADGM) Financial Regulatory Services Authority (FRSA) with a Financial Services Permission Number 190018.
  • For international clients: the counterparty will be the Ava Trade Ltd entity, located in the British Virgin Islands, and regulated by the BVI Financial Services Commission with licence SIBA/L/13/1049.

AvaTrade has strong regulations in place with several top-tier financial authorities, but due to leverage restrictions in most continents, and the huge demand for higher leverage ratios, the broker also offers trading via the BVI entity, where the maximum leverage available is 400:1 for forex trading. Overall, AvaTrade is a good choice for traders looking for a reputable broker with strong regulations in place and safety of funds.


To find out more about AvaTrade regulations, or to read our professional opinion about this regulated forex broker, please read the full AvaTrade review.



Axi broker

Axi Regulations

Main Features
  • Regulated in the UK, Australia and UAE
  • Trading analytics with the PsyQuation platform
  • 4 asset classes, including 11 world indices

Founded in 2007, and with headquarters in Australia, Axi (formerly AxiTrader) is a leading online broker. With a total client trading volume exceeding US$100 billion per month, Axi is amongst the top ten global FX providers. Axi complies with strict regulations regarding client's deposits, and customer funds are kept in top-tier international banks, such as the National Australian Bank (NAB) and the Lloyds Bank, fully segregated from the company's funds.

Axi has also signed a Client Money Insurance (CMI) policy with Lloyds of London. The CMI policy automatically covers Axi retail clients and provides an extra layer of protection for retail account balances above US$20,000. Also, in the unlikely event of Axi's business being declared insolvent, and if there is a shortfall in segregated customer assets, the insurance policy would cover any outstanding amounts, up to US$1 million per client.

Axi Regulations & Client Money Protection Mechanisms

5.0

Entity Name Licence & Regulation Segregated Client Money Deposit Compensation Scheme Negative Balance Protection Maximum Leverage
AxiCorp Financial Services Pty Ltd (AU) Australia ASIC Licence 30:1
AxiCorp Limited (UK) UK FCA Licence
up to £85,000
30:1
AxiCorp Financial Services Pty Ltd (DIFC branch) Dubai DFSA Licence 50:1
AxiTrader Limited (SVG) St. Vincent & the Grenadines Registration 500:1

Opening a trading account with Axi is possible via any of its four regulated entities. Let's take a closer look at each one:

  • For Australian customers: the counterparty is the AxiCorp Financial Services Pty Ltd entity, trading as Axi, and regulated by the Australian Securities & Investments Commission (ASIC), with licence ASFL 318232.
  • For European clients: the counterparty is AxiCorp Limited, a company registered in England and Wales, authorised and regulated by the Financial Conduct Authority (FCA) with number 509746.
  • For Middle-East customers: the counterparty is AxiCorp Financial Services Pty Ltd (DIFC branch), licensed and regulated by the Dubai DFSA, with licence F003742.
  • For international clients: the counterparty will be the AxiTrader Limited entity, located in the Saint Vincent and the Grenadines, and registered with company number 25417 BC 2019.

Axi follows the course of action of several other retail brokers. With strong regulations in place, by several top-tier financial authorities, and due to leverage restrictions in most continents, Axi also offers CFDs trading via the Saint Vincent and the Grenadines entity, where the maximum leverage available is 500:1. Overall, Axi is top choice for traders looking for a reputable broker with strong regulations in place, and safety of funds, especially with the extra layer of protection obtained with the client money insurance policy.



For a closer look at Axi regulations, or to check out our professional opinion about this broker, please read the full Axi review.



BDSwiss broker

BDSwiss Regulations

Main Features
  • Regulated in the EU and Mauritius
  • BDSwiss robust trading platform
  • 6 asset classes, including 20 cryptocurrencies crosses

Established and incorporated in 2012, BDSwiss is a leading financial institution, offering CFD investment services to more than a million clients worldwide, providing award-winning conditions, world-leading platforms, competitive pricing and optimal execution on more than 250 underlying CFD instruments. BDSwiss complies with the highest safety standards regarding client's deposits, accordingly, customers funds are kept in top-tier international banks, such as Wirecard Bank AG., Berenberg Bank AG., Handelsbanken, fully segregated from the company's funds.

BDSwiss Regulations & Client Money Protection Mechanisms

5.0

Entity Name Licence & Regulation Segregated Client Money Investor Compensation Scheme Negative Balance Protection Maximum Leverage for Retail Clients
BDSwiss Holding Plc (EU) Cyprus CySEC Licence up to €20,000 30:1
BDS Ltd (SC) Seychelles FSA Licence 500:1

Opening a trading account with BDSwiss is quite easy and fast, taking around 10-15 minutes to complete all the forms with the required information. Live trading accounts are provided by two separate entities, let's check them out:

  • For European clients: the counterparty is BDSwiss Holding Plc, registered as a Cypriot Investment Firm (CIF) under number 300153 and regulated by the Cyprus Securities and Exchange Commission (CySEC) with licence number 199/13.
  • For international clients: the counterparty will be the BDS Ltd entity (trading as BDSwiss), located and registered in the Seychelles, and regulated by the Financial Services Authority of Seychelles (FSA) with a Securities Dealer Licence.

BDSwiss provides clients with CFDs trading on 5 asset classes, at some of the most competitive conditions, including all the major currencies pairs and in addition a diverse range of other products including precious metals, equity indices, cryptocurrencies and energy contracts. With a robust, proprietary trading platform, and competitive pricing, BDSwiss could represent an interesting choice for traders looking for a reputable broker and safety of funds. Our recommendation is to open a trading account with the fully regulated European entity. For those looking for extra leverage, the option will be the entity regulated by the Mauritius FCA.



For a closer look at BDSwiss regulations, or to read our professional opinion about this regulated forex broker, please read the full BDSwiss review.



ForexTime | FXTM broker

ForexTime | FXTM Regulations

Main Features
  • Regulated in the EU, the UK and Mauritius
  • Swap-free available for MT4 accounts
  • 5 asset classes, including competitive pricing on 190+ stocks

ForexTime (FXTM) is an international online Forex broker headquartered in Limassol, Cyprus. Established in 2011 the FXTM brand is regulated by the CySEC (Cyprus Securities and Exchange Commission) and in accordance with Cyprus Law the broker is also a member of the ICF (Investor Compensation Fund). FXTM complies with the highest safety standards for client funds, kept in top-tier international banks, fully segregated from the company's own operating funds.

ForexTime | FXTM Regulations & Client Money Protection Mechanisms

5.0

Entity Name Licence & Regulation Segregated Client Money Deposit Compensation Scheme Negative Balance Protection Maximum Leverage
Forextime Ltd (EU) Cyprus CySEC Licence 300:1 (professional)
Forextime UK Limited (UK) UK FCA Licence
up to £85,000
30:1 (retail) 300:1 (professional)
FXTM Global (South Africa) South Africa FSCA Licence 2000:1

Forextime currently only provides services to clients residing in the EU, UK and Switzerland. FXTM provides services for residents of South Africa and other countries not excluded. It also provides services to institutional clients in Mauritius, Seychelles, Belarus and Belize. Accounts can be opened with three regulated entities. Let's take a closer look at each one:

  • For European customers: the counterparty is Forextime Ltd, a Cypriot Investment Firm (CIF) regulated by the Cyprus Securities and Exchange Commission (CySEC) with licence number 185/12.
  • For UK clients: the counterparty is Forextime UK Limited, a company registered in England and Wales, authorised and regulated by the Financial Conduct Authority (FCA) with number 600475.
  • For international clients: the counterparty will be the FXTM Global entity, a company authorized and regulated by South Africa's Financial Sector Conduct Authority (FSCA) with a financial services provider licence, number 46614.

Forextime Ltd (regulated by the Cyprus CySEC) ceased its services to retail investors by the end of February 2021. Currently Forextime Ltd in Cyprus only accepts applications from clients classified as professionals. Professional clients can apply for leverage up to 300:1, but will not be covered by the ESMA regulations, or the retail client protection mechanisms, such as the Negative Balance Protection and the Investor Compensation Fund. Overall, Forextime | FXTM is a safe bet for traders looking for a reputable broker offering competitive trading costs and safety of funds. For traders wishing to open an account with this broker we recommend getting in touch with them first, via email or live chat, and specify the trading needs. Customer support will be able to clarify which entity is best suited for a trading account.



To find out more about ForexTime | FXTM regulations, and for our professional review about this broker, please read the full ForexTime | FXTM review.



FP Markets broker

FP Markets Regulations

Main Features
  • Regulated in Europe and Australia
  • Excellent IRESS trading platform
  • 5 asset classes, including 10,000+ stocks available for trading

Founded in 2005, and with headquarters in Australia, First Prudential Markets Pty Ltd (FP Markets) is an online broker offering traders access to a full suite of CFDs on forex, equities, indices, metals, commodities and cryptocurrencies. FP Markets adheres to strict client money safety policies. Not only customer's deposits are kept in segregated accounts with top-tier banks, but FP Markets also provides its clients with regular account statements. To ensure constant compliance with regulations across operations, the broker's financial accounts are audited by external audit firms.

FP Markets Regulations & Client Money Protection Mechanisms

5.0

Entity Name Licence & Regulation Segregated Client Money Deposit Compensation Scheme Negative Balance Protection Maximum Leverage
First Prudential Markets PTY Ltd (AU) Australia ASIC Licence 30:1
First Prudential Markets Ltd (EU) Cyprus CySEC Licence
up to €20,000
30:1
FP Markets LLC (SVG) St. Vincent & the Grenadines Registration 500:1

Opening a trading account with FP Markets is possible via any of its three regulated entities. Let's see each entity individually:

  • For Australian customers: the counterparty is the First Prudential Markets PTY Ltd entity, trading as FP Markets, and regulated by the Australian Securities & Investments Commission (ASIC), with licence ASFL 286354.
  • For European clients: the counterparty is First Prudential Markets Ltd, a company registered as a Cyprus Investment Firm (CIF), authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) with number 371/18.
  • For international clients: the counterparty will be the First Prudential Markets LLC entity, also trading as FP Markets, located in the Saint Vincent and the Grenadines, registered as a Limited Liability Company and regulated by the nation island Financial Services Authority (FSA) with license number 126LLC2019.

This Australian-based broker is regulated by two top-tier financial authorities, but also, due to leverage restrictions in Europe and Australia, FP Markets proposes CFDs trading with the Saint Vincent and the Grenadines entity, where leverage ratios are limited to 500:1. Overall, FP Markets is a top broker, not only for the strong regulations in place, and the safety of funds, but also for its product offering and competitive pricing on cryptocurrencies trading.



To find out more about FP Markets, or to check out our professional review about this broker, please read the full FP Markets review.



FXOpen broker

FXOpen Regulations

Main Features
  • Regulated in the UK and Australia
  • Accepts Japanese clients
  • 5 asset classes, including 40 cryptocurrencies crosses to trade

FXOpen was founded, originally, as an educational centre offering technical analysis, and other financial markets related, courses. In 2005 FXOpen launched its brokerage services to satisfy the demand for fair and transparent trading conditions, merged with an excellent customer support. FXOpen complies with the highest safety standards for client's funds, kept in top-tier international banks, such as the Commonwealth Bank of Australia, Barclays Bank Plc and Lloyds Bank Plc, fully segregated from the company's funds.

FXOpen Regulations & Client Money Protection Mechanisms

5.0

Entity Name Licence & Regulation Segregated Client Money Deposit Compensation Scheme Negative Balance Protection Maximum Leverage
FXOpen Ltd (UK) UK FCA Licence up to £85,000 30:1
FXOpen AU PTY Ltd (AU) Australia ASIC Licence 30:1
FXOpen Markets Limited (Nevis) N/A 500:1

FXOpen trading accounts can be opened with any of its two regulated entities (in the UK and Australia), and with the Nevis company. Let's take a closer look at each entity:

  • For European clients: the counterparty is FXOpen Ltd, a company registered in England and Wales, authorised and regulated by the Financial Conduct Authority (FCA) with number 579202.
  • For Australian customers: the counterparty is the FXOpen AU PTY Ltd entity, trading as FXOpen, and regulated by the Australian Securities & Investments Commission (ASIC), with licence ASFL 412871.
  • For international clients: the counterparty will be the FXOpen Markets Limited entity, located and incorporated in the Caribbean Island of Nevis with company number C 42235.

FXOpen also follows the same course of action of other retail brokers. On one hand, the possibility of trading with two entities regulated by top-tier financial authorities, but also, due to leverage restrictions in Europe and Australia, CFDs trading with the Nevis entity, where the maximum leverage available is 500:1. Overall, FXOpen is a great choice for traders looking for a reputable broker with strong regulations in place, and safety of funds, but also for the great range of cryptocurrencies available for trading.



To find out more about FXOpen regulations, or to read our professional analysis about this broker, please check out the full FXOpen review.



FxPrimus broker

FxPrimus Regulations

Main Features
  • Regulated in Europe, South Africa and Vanuatu
  • Free deposits and withdrawals, accepts Bitpay
  • 4 asset classes, with personal expert market analysis

Primus Global Ltd is acclaimed for offering a safe and secure online trading environment, with quick execution, via state-of-the-art execution systems worldwide. FxPrimus client's funds are protected with an unshakable risk management model, built to withstand any unexpected market volatility. Through the advanced risk management systems, featuring strict regulations, negative balance protection and segregated client funds in top-tier international banks, the broker offers a good level of safety regarding client assets.

As an added safety measure, FxPrimus introduced in 2019 a €2.5million professional indemnity insurance, maintained by Howden, a trading name of RKH Specialty Limited, part of the Hyperion Insurance Group. RKH Specialty Limited is authorised and regulated by the UK's Financial Conduct Authority in respect of general insurance business. The insurance covers customer's funds, in the unlikely event of a shortfall, free of charge.

FxPrimus Regulations & Client Money Protection Mechanisms

5.0

Entity Name Licence & Regulation Segregated Client Money Deposit Compensation Scheme Negative Balance Protection Maximum Leverage
Primus Global Ltd (EU) Cyprus CySEC Licence up to €20,000 30:1
Primus Markets Intl Limited (VU) Vanuatu VFSC Licence 500:1
Primus Africa (Pty) Ltd (SA) South Africa FSCA Licence N/A

FxPrimus offers two types of trading accounts, Variable and ECN, both can be opened via two of its three regulated entities, offering different levels of protection. Let's compare each entity:

  • For European clients: the counterparty is Primus Global Ltd, a Cypriot Investment Firm (CIF) regulated by the Cyprus Securities and Exchange Commission (CySEC) with licence number 261/14.
  • For international clients: the counterparty will be the Primus Markets Intl Limited entity (trading as FxPrimus) located and incorporated in Vanuatu with company number 14595 and regulated by the Vanuatu Financial Services Commission (VFSC).
  • South Africa regulation: Primus Africa (Pty) Ltd, registered in South Africa with company number 2015/426230/07, holds a Financial Service Provider licence, number 46675, issued by South Africa's Financial Sector Conduct Authority (FSCA). Currently, no accounts can be opened with this entity.

FxPrimus focuses its efforts on engaging in targeted strategies, in order to provide the highest possible quality of online trading, with its product offering and two entities allowing different leverage ratios. Our recommendation is Primus Global Ltd, fully regulated by the CySEC and in full compliance with the objectives of Markets in Financial Instruments Directive (MiFID). Clients of Primus Global Ltd (European entity) are also protected by the Investor Compensation Fund.



To find out more about FxPrimus regulations, or our professional opinion about this broker, please read the full FxPrimus review.



FxPro broker

FxPro Regulations

Main Features
  • Regulated in the EU, the UK, South Africa, Bahamas
  • Great range of four trading platforms
  • 5 asset classes, no fees on deposits & withdrawals

Established in 2006, and with an outstanding track record of profitable growth, FxPro's core business is acting as the primary source in CFDs trading for its global clientele. The FxPro Group Limited is a global company providing innovative online FX brokerage services, regulated in both the UK by the FCA and in Cyprus by the CySEC. As a strongly regulated broker, FxPro client's funds are kept in top-tier international banks, such as the Barclays Bank, the RBS and the Emirates NBD, fully segregated from the company's funds.

FxPro Regulations & Client Money Protection Mechanisms

5.0

Entity Name Licence & Regulation Segregated Client Money Deposit Compensation Scheme Negative Balance Protection Maximum Leverage
FxPro UK Limited (UK) UK FCA Licence up to £85,000 30:1
FxPro Financial Services Ltd (EU) Cyprus CySEC Licence up to €20,000 30:1
FxPro Financial Services Ltd (South Africa) South Africa FSCA Licence 200:1
FxPro Global Markets Ltd (BA) Bahamas SIA Licence 200:1

Investors have the option of opening a trading account with any of FxPro's four regulated entities, with two entities directed to the European market and two more for the international clientele. Let's discover a bit more about each entity:

  • UK regulation: the counterparty is FxPro UK Limited, a company registered in England and Wales, authorised and regulated by the Financial Conduct Authority (FCA) with number 509956.
  • European regulation: the counterparty is FxPro Financial Services Ltd, a company registered as a Cyprus Investment Firm (CIF), authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) with number 078/07.
  • South Africa regulation: the counterparty will be FxPro Financial Services Ltd, a company authorized and regulated by South Africa's Financial Sector Conduct Authority (FSCA) with a financial services provider licence, number 45052.
  • Bahamas regulation: directed at the international clientele, the counterparty will be the FxPro Global Markets Ltd entity, authorised and regulated by the Bahamas SCB with licence SIA-F184.

FxPro is a well-known brand amongst traders, with an undeniable popularity, thanks to their huge advertising budget, over $121 million invested in sponsorships so far, with big names like McLaren F1 team and Aston Villa FC. With strong regulations in place, FxPro is undoubtedly an excellent choice for traders looking for a reputable broker and above all, safety of funds. As an added layer of protection, retail clients opening an account with any of the entities in Europe are also covered by the Investor Compensation Fund.



For a closer look at FxPro regulations, or to check out our professional opinion about this broker, please read the full FxPro review.



Tickmill broker

Tickmill Regulations

Main Features
  • Regulated in the EU, the UK and Seychelles
  • STP trading environment, with low spreads & commissions
  • 4 asset classes, fast execution speeds, ideal for Automated Trading systems

Established in 2014, Tickmill is a UK-based online broker advocating an enjoyable trading experience, thanks to its low spreads, no-requotes, and using a STP (Straight-Through-Processing) model, merged with absolute transparency and with the latest in trading technology. Tickmill observes the highest standards for client's deposits, with client's funds kept in top-tier international banks, such as the Barclays Bank, UBS, and HSBC, and fully segregated from the broker’s funds.

Tickmill Regulations & Client Money Protection Mechanisms

5.0

Entity Name Licence & Regulation Segregated Client Money Deposit Compensation Scheme Negative Balance Protection Maximum Leverage
Tickmill UK Ltd (UK) UK FCA Licence up to £85,000 30:1
Tickmill Europe Ltd (EU) Cyprus CySEC Licence up to €20,000 30:1
Tickmill Ltd (SC) Seychelles FSA Licence 500:1

Tickmill, currently, allows investors the possibility to open an account with three regulated entities. Let's take a closer look at each one:

  • For European customers: the counterparty is Tickmill Europe Ltd, a Cypriot Investment Firm (CIF) regulated by the Cyprus Securities and Exchange Commission (CySEC) with licence number 278/15.
  • For UK clients: the counterparty is Tickmill UK Ltd, a company registered in England and Wales, authorised and regulated by the Financial Conduct Authority (FCA) with number 717270.
  • For international clients: the counterparty will be the Tickmill Ltd entity, a company registered in the Seychelles, and regulated by the Financial Services Authority of Seychelles (FSA) with a Securities Dealer Licence.

Both entities in Europe have restrictions on leverage limits for retail clients - currently 30:1 - but traders classified as Professionals can apply for a maximum leverage ratio of 500:1. The only downside is that Professional traders are not covered by the same retail client protection mechanisms (ICF & NBP).

To sum up, the Tickmill broker is a great choice for traders looking for fund's safety. Both entities in Europe - Tickmill UK Ltd and Tickmill Europe Ltd - have strong regulations in place, and solid retail investor protection mechanisms, such as regulatory deposit insurance and negative balance protection. Tickmill is also the first choice of traders using automated trading systems, thanks to the low latency and fast execution speeds promoted by the broker.



To know more about the Tickmill regulations, or to read our professional review about this regulated forex broker, please read the full Tickmill review.



Conclusion

Online retail trading can be a risky business, not only for the high-volatility of the markets, but especially if the chosen entity does not offer the adequate retail investor protection mechanisms.

Top-tier regulators across the world – Europe’s ESMA, Australia’s ASIC, US NFA, Japan FSA – work to make sure that retail investor protection is implemented. These financial authorities make compulsory for CFD brokers to adopt strong measures to protect retail investors, for example segregated client funds, negative balance protection and investor compensation schemes.

Jurisdictions lacking strong regulations, or failing to impose retail investor protection measures, are attractive for brokers – and sometimes less scrupulous brokers, unfortunately – also due to the low fines or penalties applied to brokers contravening such regulations.

Also, CFDs trading leverage - the main cause for retail investors losses – has gone through several interventions by the top-tier regulators, in an attempt to lower the amount of money (several billions of dollars yearly) by retail traders. Top-tier regulators have imposed a leverage limit of 30:1 for retail traders and 400:1 for traders classified as professional. Please note that a professional trader is not covered by the retail trader protection mechanisms

Still, attracted by the misinformation related to CFDs trading, thousands of traders are still looking for higher leverage ratios - 500:1 is the most common – forcing several brokers to offer trading accounts with entities regulated by less strict financial authorities, such as the Seychelles FSA.

When looking for a retail forex broker traders need to think about their principle need as traders – more leverage, or, funds safety? Well, the answer should be pretty simple. Every trader wants, and needs, a broker that can be trusted with their account deposits.

To help you in the process of finding a retail broker easier, our regulated forex broker list above covers the most important key points, such as which regulatory authority supervises each entity, what are the client money protection mechanisms available and the maximum available leverage with each jurisdiction.

Together with our professional opinion, our focus is to give traders the tools to make informed decisions, and we're here to help with our reviews, ratings, and rankings. You can also help the trading community with your opinion, simply go to FXverify - forex brokers reviews, find your broker from the list and share your views and tips. If you prefer, please use the comments box below - we do love to hear from our readers.