🛡️ Investor Protection Guide

Forex Regulators Worldwide

The forex market trades $7.5 trillion daily — but ~35% of brokers are unregulated or outright scams. This guide helps you identify trustworthy regulators and verify any broker in minutes.

🏆 Tier 1 Regulators 🔍 Verify a Broker
$7.5T Daily Volume
~35% Scam Risk
£85K Max Protection
17+ Regulators Covered

⚠️ Why Regulation Matters

Forex scams cost investors billions every year. Here's the reality:

💸
$4.6 Billion Lost to forex scams in 2024
👥
350,000+ Victims reported globally
📊
76% Involve unregulated brokers
🛡️
€20K - £85K Tier 1 compensation range

Global Broker Distribution (~3,000+ brokers worldwide)

🏆 Tier 1 (FCA, ASIC, NFA)
~25%
⚡ Tier 2 (CySEC, DFSA)
~30%
⚠️ Tier 3 (Offshore)
~10%
🚨 Unregulated / Scams
~35%

📊 Understanding Regulation Tiers

Not all regulators are equal. We classify them into 3 tiers based on investor protection, enforcement, and transparency:

🏆 TIER 1 MAXIMUM PROTECTION

Premium Regulators

  • ✅ Compensation schemes (up to £85,000)
  • ✅ Mandatory fund segregation
  • ✅ Strict capital requirements ($500K-$20M+)
  • ✅ Negative balance protection
  • ✅ Regular audits & reporting
  • ✅ Strong enforcement powers
Examples: FCA (UK), ASIC (AU), NFA/CFTC (US), FINMA (CH), BaFin (DE), MAS (SG), JFSA (JP)
⚡ TIER 2 STANDARD PROTECTION

Solid Regulators

  • ✅ EU/Regional compensation (€20,000)
  • ✅ Fund segregation required
  • ✅ Moderate capital requirements
  • ✅ Negative balance protection
  • ⚠️ Less strict enforcement
  • ⚠️ May allow higher leverage
Examples: CySEC (CY), DFSA (UAE), FMA (NZ), FSCA (ZA), CNMV (ES), AMF (FR)
⚠️ TIER 3 HIGH RISK

Offshore / Weak

  • ❌ NO compensation scheme
  • ❌ NO fund segregation guarantee
  • ❌ Minimal capital requirements
  • ❌ High leverage allowed (1:1000+)
  • ❌ Weak or no enforcement
  • ❌ Easy to obtain license
Examples: FSA Seychelles, VFSC Vanuatu, FSC Mauritius, BVI FSC

🔍 How to Verify Any Broker in 5 Steps

Before depositing any money, follow this verification process:

1

Find the License Number

Look in the broker's website footer or "About/Regulation" page. Legitimate brokers prominently display their license numbers.

💡 No license number visible = Red flag
2

Check Official Registers

Verify the license on the regulator's official website:

🇬🇧 FCA Register 🇦🇺 ASIC Register 🇺🇸 NFA BASIC 🇨🇾 CySEC Register
3

Match Company Details

Verify that the legal name, license number, and website all match exactly. Scammers often use similar names to legitimate brokers.

💡 "XYZ Markets Ltd" ≠ "XYZ Market Ltd"
4

Check Permissions

Ensure the broker is authorized for the services they offer (forex, CFDs, derivatives). Some licenses only cover limited activities.

💡 "Authorised and regulated" ≠ "Registered"
5

Check Warning Lists

Search for the broker on regulator warning lists:

⚠️ FCA Warning List ⚠️ ESMA Registers

🚨 Red Flags — Run Immediately If You See These

❌
No License Number

Legitimate brokers always display their license prominently.

❌
Offshore-Only Registration

St. Vincent, Marshall Islands, Vanuatu = zero protection.

❌
"Guaranteed Profits"

No legitimate broker can guarantee returns. Trading involves risk.

❌
Pressure to Deposit

"Limited time bonus" or aggressive sales tactics = scam.

❌
Withdrawal Problems

Delays, extra fees, or "verification" hurdles to withdraw.

❌
WhatsApp/Telegram Only

No phone, no email, no physical address = likely scam.

❌
Cold Calls

Unsolicited calls offering trading opportunities are illegal in most jurisdictions.

❌
Celebrity Endorsements

Fake celebrity ads promoting trading platforms are a common scam tactic.

🏆 Tier 1 Regulators — Maximum Protection

The world's most trusted financial regulators. All provide investor compensation, strict oversight, and strong enforcement.

✓ RECOMMENDED
Regulator Country Trust Score Min Capital Compensation Max Leverage Segregated NBP Actions
🇬🇧
FCA Financial Conduct Authority
United Kingdom 95/100 €730,000 FSCS - £85,000 1:30 ✅ Yes ✅ Details
🇦🇺
ASIC Australian Securities and Investments Commission
Australia 92/100 AUD 1,000,000 No specific scheme 1:30 ✅ Yes ✅ Details
🇨🇭
FINMA Swiss Financial Market Supervisory Authority
Switzerland 98/100 CHF 1,500,000 esisuisse - CHF 100,000 1:200 ✅ Yes ✅ Details
🇺🇸
NFA National Futures Association
United States 95/100 $20,000,000 No specific scheme 1:50 ✅ Yes ❌ Details
🇩🇪
BaFin Federal Financial Supervisory Authority
Germany 90/100 €730,000 EdW - €20,000 1:30 ✅ Yes ✅ Details
🇸🇬
MAS Monetary Authority of Singapore
Singapore 93/100 SGD 1,000,000 None 1:20 ✅ Yes ✅ Details
🇬🇧

FCA Financial Conduct Authority

United Kingdom
95
Min Capital €730,000
Compensation FSCS - £85,000
Leverage (Retail) 1:30
Leverage (Pro) 1:500
Segregated Funds ✅ Required
Negative Balance ✅ Protected
✓ Key Benefits:
  • Strongest investor protection (£85,000 FSCS)
  • Strict capital requirements
  • Regular audits and reporting
Full Details 36 Brokers →
🇦🇺

ASIC Australian Securities and Investments Commission

Australia
92
Min Capital AUD 1,000,000
Compensation No specific scheme
Leverage (Retail) 1:30
Leverage (Pro) 1:500
Segregated Funds ✅ Required
Negative Balance ✅ Protected
✓ Key Benefits:
  • Strong regulatory framework
  • Transparent operations
  • Active enforcement
Full Details 18 Brokers →
🇨🇭

FINMA Swiss Financial Market Supervisory Authority

Switzerland
98
Min Capital CHF 1,500,000
Compensation esisuisse - CHF 100,000
Leverage (Retail) 1:200
Leverage (Pro) 1:200
Segregated Funds ✅ Required
Negative Balance ✅ Protected
✓ Key Benefits:
  • Swiss banking reputation
  • CHF 100,000 protection
  • Higher leverage than EU
Full Details 2 Brokers →
🇺🇸

NFA National Futures Association

United States
95
Min Capital $20,000,000
Compensation No specific scheme
Leverage (Retail) 1:50
Leverage (Pro) 1:50
Segregated Funds ✅ Required
Negative Balance ❌ No
✓ Key Benefits:
  • Highest capital requirements
  • Strictest oversight globally
Full Details 0 Brokers →
🇩🇪

BaFin Federal Financial Supervisory Authority

Germany
90
Min Capital €730,000
Compensation EdW - €20,000
Leverage (Retail) 1:30
Leverage (Pro) 1:500
Segregated Funds ✅ Required
Negative Balance ✅ Protected
✓ Key Benefits:
  • German regulatory standards
  • EU passporting
  • Strong enforcement
Full Details 3 Brokers →
🇸🇬

MAS Monetary Authority of Singapore

Singapore
93
Min Capital SGD 1,000,000
Compensation None
Leverage (Retail) 1:20
Leverage (Pro) 1:50
Segregated Funds ✅ Required
Negative Balance ✅ Protected
✓ Key Benefits:
  • World-class regulation
  • Asian financial hub
Full Details 0 Brokers →

✨ Our Verified Tier 1 Selection

✓ All regulated • Tested accounts • No scams
1
IC Markets ASIC, CySEC, FSA
★ 4.8 From 0.0 pips
2
Pepperstone FCA, ASIC, CySEC
★ 4.7 From 0.0 pips
3
Interactive Brokers NFA, FCA, MAS
★ 4.7 From 0.1 pips
4
IG FCA, ASIC, NFA
★ 4.6 From 0.6 pips

⚡ Tier 2 Regulators — Standard Protection

Reputable regulators with EU passporting and moderate investor protection. Good for most traders.

⚡ ACCEPTABLE
Regulator Country Trust Compensation Leverage Brokers
🇨🇾 CySEC
Cyprus 78/100 ICF - €20,000 1:30 35 →
🇦🇪 DFSA
UAE 80/100 None 1:50 1 →
🇿🇦 FSCA
South Africa 72/100 None No limit 0 →

⚠️ Tier 3 Regulators — Offshore (HIGH RISK)

Minimal oversight, no compensation, weak enforcement. Only for experienced traders who understand the risks.

⚠️ HIGH RISK
⚠️ Important Warning: Brokers with ONLY Tier 3 regulation provide ZERO investor protection. If the broker fails, becomes insolvent, or refuses withdrawals — your money is gone with no recourse.
Regulator Country Trust Compensation Leverage Risk Level
🇸🇨 FSA
Seychelles 45/100 ❌ None 1:2000 HIGH
🇻🇺 VFSC
Vanuatu 35/100 ❌ None 1:1000 HIGH
🇧🇿 IFSC
Belize 38/100 ❌ None 1:1000 HIGH

☠️ RED FLAG JURISDICTIONS — AVOID COMPLETELY

These jurisdictions have NO real forex regulation. Brokers registered here are almost certainly scams or provide zero protection:

☠️
Marshall Islands Trust: 15/100
☠️
St. Vincent and the Grenadines Trust: 20/100
☠️
Comoros Trust: 10/100
🚨 If your broker is only registered in these jurisdictions:
  1. STOP all deposits immediately
  2. Withdraw your funds as soon as possible
  3. Report to your local financial authority (FCA, ASIC, etc.)
  4. Report to Action Fraud (UK) or IC3 (US) if you've lost money

📊 Complete Regulator Comparison

Side-by-side comparison of all major forex regulators worldwide:

Tier Regulator Country Trust Capital Req. Compensation Retail Leverage Segregated NBP Year Est.
T1 FCA United Kingdom 95 €730,000 FSCS - £85,000 1:30 ✅ ✅ 2013
T1 ASIC Australia 92 AUD 1,000,000 No specific scheme 1:30 ✅ ✅ 1991
T1 FINMA Switzerland 98 CHF 1,500,000 esisuisse - CHF 100,000 1:200 ✅ ✅ 2009
T1 NFA United States 95 $20,000,000 No specific scheme 1:50 ✅ ❌ 1982
T1 BaFin Germany 90 €730,000 EdW - €20,000 1:30 ✅ ✅ 2002
T1 MAS Singapore 93 SGD 1,000,000 None 1:20 ✅ ✅ 1971
T2 CySEC Cyprus 78 €730,000 ICF - €20,000 1:30 ✅ ✅ 2001
T2 DFSA UAE 80 $1,000,000 None 1:50 ✅ ✅ 2004
T2 FSCA South Africa 72 ZAR 1,000,000 None No limit ✅ ❌ 2018
T3 FSA Seychelles 45 $50,000 None 1:2000 ❌ ❌ 2013
T3 VFSC Vanuatu 35 $50,000 None 1:1000 ❌ ❌ 1993
T3 IFSC Belize 38 $100,000 None 1:1000 ❌ ❌ 1999

🛡️ Trade With Confidence

All 145 brokers in our database are verified across 12 regulators

✓ All regulated • ✓ No scams listed • ✓ 113 data points per broker

Browse Verified Brokers Compare Side-by-Side

❓ Frequently Asked Questions

What is the safest forex regulator?

The FCA (UK), FINMA (Switzerland), ASIC (Australia), and NFA/CFTC (USA) are considered the safest. They have the strictest requirements, strongest enforcement, and offer investor compensation up to £85,000 (FCA) or CHF 100,000 (FINMA).

How much compensation can I receive if a broker fails?

FCA (UK): Up to £85,000 per person via FSCS
FINMA (CH): Up to CHF 100,000
CySEC (EU): Up to €20,000 via ICF
Offshore: Nothing — zero protection

Should I trust offshore brokers?

We strongly advise against using brokers that are ONLY registered in offshore jurisdictions (Seychelles, Vanuatu, St. Vincent, etc.). These provide zero investor protection. However, some quality brokers have offshore entities in addition to Tier 1 licenses — always trade under the Tier 1 entity.

Are multiple licenses better?

Yes, generally. A broker with multiple licenses (e.g., FCA + ASIC + CySEC) demonstrates commitment to compliance and provides regional protection. However, always verify which entity you're trading with — different entities may have different protections.

Why do some brokers use offshore licenses?

Offshore licenses allow brokers to offer: higher leverage (1:500+), bonuses/promotions (banned in EU/UK), and accept clients from more countries. However, this comes at the cost of zero investor protection.

How do I verify a broker's license?

Find the license number on the broker's website, then verify it on the regulator's official register. For FCA: register.fca.org.uk. For ASIC: connectonline.asic.gov.au. For NFA: nfa.futures.org/basicnet.

What is negative balance protection?

Negative balance protection ensures you can never lose more than your deposited funds. If your account goes negative (e.g., due to a flash crash), the broker absorbs the loss. This is mandatory for retail clients under FCA, ASIC, and CySEC regulations.

What does "segregated funds" mean?

Segregated funds means your money is held in separate bank accounts from the broker's operational funds. If the broker goes bankrupt, your funds are protected from creditors. This is mandatory under Tier 1 regulations.