5 Best Regulated Forex Brokers in [year]

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The Forex market attracts thousands of new traders around the world every day. One of the most critical requirements for a successful trading career is trading with one of the many regulated Forex brokers.

The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Best all around broker
High floating leverage + fast execution
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
ECN-style trading
Daily market research and Autochartist access
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
High level regulation in multiple jurisdictions
Impressive range of tradeable assets including vanilla options and gold options
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Most extensive crypto derivatives offering. Choice of 250+ Crypto CFDs
Multiple funding and swift withdrawal options
Ultra-low spreads across all Crypto derivatives
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Solid broker for scalping and hedging
Institutional-style trading opportunities for retail traders

  • FXTM, Best all-around broker with high floating leverage and fast execution.
  • FP Markets, ECN trading with leverage up to 1:500..
  • AvaTrade, Highly regulated, choice of fixed or floating spreads.
  • Eightcap, Competitive pricing + excellent daily videos.
  • BlackBull Markets, Best ECN trading environment, with scalping and hedging.


5.0/5 in this category
In Summary
Best all-around broker with high floating leverage and fast execution

FXTM is another superior choice for traders seeking one of the best-regulated Forex brokers in 2021. With its primary regulator, the FSC in Mauritius, FXTM has subsidiaries authorized by the FCA in the UK and the CySEC in Cyprus. Adding to the trustworthy and honest trading environment are excellent execution statistics, including order execution speed, slippage, and requotes. Big Four accountancy PricewaterhouseCoopers Limited (PwC) confirms them, and they point towards an outstanding technology infrastructure available at FXTM. It makes it a premier choice for scalpers, and FXTM enjoys a leadership position in emerging and frontier markets, where it offers domestic payment options. A total of 47 ensure many of its 2,000,000 traders have one suitable in their local currency. The minimum deposit of just $10 allows all traders to implement a suitable portfolio building deposit strategy, boosted by the 30% deposit bonus up to $250.

  • Excellent commission-based Forex pricing environment and transparency

  • Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app

  • Quality market research and educational content for beginner traders

  • Proprietary copy trading platform, low minimum deposit, and high leverage

  • Limited choice of cryptocurrencies and commodities

FP Markets

5.0/5 in this category
In Summary
ECN trading with leverage up to 1:500.

FP Markets remains one of the best-regulated Forex brokers in 2021 out of highly competitive Australia, where the ASIC maintains a business and trader friendly environment. It does not extend to the CySEC-regulated entity in Cyprus, where the ESMA places clients at a distinct disadvantage. The asset selection exceeds 10,000 but is only available in the proprietary Iress trading platform. Regrettably, access remains restricted by the geographical location of clients. The MT4 and MT5 trading platforms provide significantly less trading choices, but FP Markets provides twelve upgrades to the below-average core versions, ensuring traders have competitive trading platforms. The execution speed below 40 milliseconds and maximum leverage of 1:500 make it an excellent choice for automated trading solutions and scalpers.

  • Choice of trading platforms and auxiliary trading tools

  • Very competitive cost structure and excellent asset selection

  • Low minimum deposit requirement and leverage of up to 1:500

  • Well-regulated and trustworthy

  • Availability of Iress geographically restricted


5.0/5 in this category
In Summary
Highly regulated, choice of fixed or floating spreads

AvaTrade remains one of the best-regulated Forex brokers in 2021, with primary oversight by the Bank of Ireland. Additional jurisdictions consist of the ASIC in Australia, the FSA in Japan, the FSCA in South Africa, the FSC in the British Virgin Islands, the FSRA in Abu Dhabi, and the IIROC in Canada. Established in 2006, over 300,000 clients trust AvaTrade and its clean regulatory track record with all authorities. It provides 24/7 customer support in 14 languages, maintains a commission-free trading environment, and a competitive asset selection above 1,250 CFDs and options contracts. AvaTrade is known for trust and transparency and continues to increase its market share. Traders with a deposit above $1,000 qualify for a $200 bonus, but only from operating entities in regulatory jurisdiction that permits bonus campaigns.

  • High-quality educational offering via SharpTrader

  • Excellent choice of trading platforms catering to various trading needs

  • Broad asset selection and cross-asset diversification opportunities

  • Well-regulated and trusted broker with oversight from a central bank

  • Trading costs competitive but nothing special


5.0/5 in this category
In Summary
Competitive pricing + excellent daily videos

Unique Features




ASIC, FSC Mauritius

Year Founded


Type of Broker


Minimum Deposit


Maximum Leverage


Type of Platform

MetaTrader 4, MetaTrader 5

Eightcap Pros & Cons

  • Low minimum deposit and high leverage of up to 1:500

  • Competitive cost structure

  • Excellent technology infrastructure and seasoned management team

  • Daily research and quality educational content

  • Limited leverage in some areas

BlackBull Markets

4.5/5 in this category
In Summary
Best ECN trading environment, with scalping and hedging

BlackBull Markets was founded in 2014 in New Zealand. Like many antipodean Forex brokers, BlackBull Markets is an ECN broker, offering raw spreads and commissions. They are regulated in New Zealand by the Financial Services Providers Register (FSPR) and offer a maximum leverage on some Forex currency pairs as high as 500 to 1. In addition to their global headquarters in New Zealand, BlackBull Markets also has presences in the form of branch offices in New York and Malaysia. BlackBull Markets offers a relatively tight range of tradable assets: 27 Forex currency pairs and crosses, gold, silver, crude oil, natural gas, and 6 major equity indices. That should be sufficient for those traders with more focused strategies not requiring wide diversification.

BlackBull Markets Pros & Cons

  • ECN/NDD execution model with deep liquidity

  • Institution-grade pricing for retail traders via proprietary price aggregation

  • ZuluTrade and Myfxbook for social trading

  • Leverage of up to 1:500

  •  Limited deposit options

What is Forex Regulation?

With daily turnover approaching $7 trillion, the low capital requirements to start a portfolio and high leverage combine with countless trading opportunities that drive demand. Many professional firms and multi-national companies deal with Forex every day, and retail traders remain indirectly exposed in numerous ways. A rapidly rising number of them show interest in the attractiveness of Forex trading. They open new online Forex broker trading accounts to get access to the fast-moving market, keeping demand for trading services elevated.

One of the most critical requirements for a successful trading career is trading with one of the many regulated Forex brokers. I cannot stress the significance of it enough. Never deposit with an unregulated Forex broker, regardless of how attractive an offer they make. The negatives outweigh any short-term positive marketing-related push. One of the worst nightmares of profitable Forex traders is the inability to withdraw their earned capital because their unregulated Forex broker does not honor it. Therefore, traders must ignore any offers from unregulated sources and pay attention to competitive trading environments maintained by regulated Forex brokers.

Not all regulators are the same, and trading from the proper jurisdiction provides a competitive edge. The UK was home to the best regulatory trading environment maintained by the Financial Conduct Authority (FCA). It changed following counter-productive regulatory changes by the European Securities and Markets Authority (ESMA). It made EU-based Forex brokers the least competitive globally. With the Brexit transition period ending at 23:00 on December 31st, 2020, European Central Time (ECT), the UK financial sector is expected to make changes and return to its previous glory. London remains the financial center of the world and is ideally positioned to expand its leadership position. UK Forex brokers have always been among the industry leaders. Australia offers Forex traders another excellent and competitive trading environment. The Australian Securities and Investments Commission (ASIC) ensures one of the best regulatory jurisdictions. Since former hotspot Cyprus and the Cyprus Securities and Exchange Commission (CySEC) fall under ESMA jurisdiction, one exciting regulatory environment to monitor is South Africa and the Financial Sector Conduct Authority (FSCA). South Africa shares the same time zone as Cyprus, is an English-speaking country and a G-20 member.

Forex regulation is a set of rules by an authority with enforcement powers that ensures brokers treat customers fairly. It also enables the financial health and stability of the system and provides dispute resolution. In some cases, an investor compensation fund in case of bankruptcy by a broker exists. Not all regulators grant equal protection and enforcement, and some maintain an uncompetitive trading environment like the ESMA, which applies to all EU-based brokers. I highly recommend that traders always trade with one of the thousands of regulated Forex brokers. While it cannot guarantee against fraud and malpractice, as well-documented cases in the US and Cyprus have shown, it offers a layer of protection and security that traders should demand from their brokers. Traders should seek a minimum of five years under a well-regulated environment and must also check the track record. Many brokers faced fines but continue to cater to clients. It shows that an attempt to take advantage of unknown retail traders was made, but the regulator caught them.

Why Should You Choose a Regulated Broker?

Most traders conduct some research and due diligence to identify a trustworthy Forex broker and often follow the best-marketed one or the one with the most appealing offer, usually in the form of bonuses and promotions. While the majority of brokers and all traders hope for the best outcome, issues may arise. They do not necessarily originate from malpractice, but a technological glitch, communication error, administrative backlog, or a third-party mistake may occur. Trading with a regulated broker provides traders access to a qualified team to resolve those issues. Regulated Forex brokers must adhere to financial regulations and maintain a certain amount of capital reserves before receiving a license to operate. Frequent audits ensure that client deposits and earnings reflect the accurate value, and regulated Forex brokers must segregate client funds from corporate ones. The processing times of financial transaction is faster and more transparent. It also enforces the protection of information provided by traders during the registration process.

Regulated Forex brokers must satisfy know-your-client (KYC) and anti-money laundering (AML) stipulations, adding another layer of security. A compensation fund protects against any unexpected financial failure of the broker, which remains dependent on the jurisdiction. Some take out additional insurance protection or apply for membership with the Hong-Kong-based Financial Commission, an independent self-regulatory organization and external dispute resolution (EDR) body focused on the Forex market. The Compensation Fund provides coverage for traders up to €20,000 per case if the broker defrauded traders. It emerged as a favorite to many regulators. It enables brokers to register in business-friendly jurisdictions while offering superior protection. Regulated Forex brokers also process withdrawals swiftly, act in the best interest of clients, and stay clear of manipulating prices or stop-loss hunting. An ECN execution model generally provides more safety than a market maker model. The broker is not the counterparty and receives compensation via volume-based commissions rather than a mark-up on spreads and client losses.

Major Regulatory Bodies

All countries have a financial regulator, but there are several major regulatory bodies for the Forex market with a distinct cluster of brokers. Below is a list of the most dominant ones for Forex traders to be familiar with and to recognize:

  1. Australia - Australian Securities and Investments Commission (ASIC): A member of the UK Commonwealth of Nations, Australia quietly grew into another Forex hotspot with excellent and competitive regulation.
  2. Belize - International Financial Services Commission (IFSC): The IFSC is another trusted regulator that offers excellent trading conditions and serves as a significant Forex broker location, especially for Latin American expansion.
  3. Canada – Investment Industry Regulatory Organization of Canada (IIROC): At a federal level, IIROC oversees Forex regulation in Canada, with a legal duty to supervise and regulate investment dealers although the provinces have their own localized regulations. The IIROC has a reputation of a strict regulator – many analysts would say overly strict, although Canadian residents are certainly well protected. In any case, much of the overly harsh Canadian regulation is imposed at provincial level, especially in Alberta.
  4. Cyprus - Cyprus Securities and Exchange Commission (CySEC): A former haven for Forex brokers, the ESMA turned it into the least competitive and most recognized Forex regulator. Numerous high-level scams operated under its oversight.
  5. Dubai - Dubai Financial Services Authority (DFSA): Regional traders, thanks to the DFSA, have a secure and competitive trading environment. Dubai is the financial service center of the Middle East, gaining traction among Forex brokers.
  6. Mauritius - Financial Services Commission (FSC): Another well-known regulator with a business-friendly environment preferred by many Forex brokers.
  7. Seychelles - Financial Services Authority (FSA): The FSA maintains an offshore center for many financial firms. It remains a top location for Forex brokers with an active regulator.
  8. Singapore - Monetary Authority of Singapore (MAS): Singapore remains an excellent gateway to Asia, is a growing Asian financial hub, and an attractive destination for Asian-focused international Forex brokers.
  9. South Africa - Financial Sector Conduct Authority (FSCA): An up-and-coming regulator set to benefit from missteps by the EU.
  10. Switzerland - Swiss Financial Market Supervisory Authority (FINMA): The global banking center provides well-trusted regulatory oversight with a forward-thinking approach.
  11. UK - Financial Conduct Authority (FCA): The FCA remains the best overall financial regulator globally. Many of the best-regulated Forex brokers operate under its jurisdiction. Following Brexit, the competitiveness the UK lost under the ESMA will return and enable UK-based brokers to increase their market share further.
  12. US - Commodity Futures Trading Commission (CFTC): Three of the most significant brokerage frauds occurred under its oversight over the past decade. This regulator cripples financial innovation, and US traders operate under the least competitive framework.

The above listing includes the most prominent national regulatory bodies. The reader is encouraged to explore our detailed listing of financial regulatory bodies for each country set out in alphabetic order.

How Forex Regulations Protect You

Forex regulations protect traders by ensuring that brokers segregate client deposits from corporate funds. They also provide an enforcement mechanism against broker fraud, police the financial sector, and issue warnings. Traders can check their websites and databases to retrieve information about brokers. Regulators require brokers to submit trade execution and financial data and command minimum capital requirements before granting an operating license. Some regulations remain counter-productive, like the ill-advised ESMA crackdown on leverage and bonuses, but traders should never trade with an unregulated Forex broker. Trading with uncompetitive EU-based brokers can harm profitability and limit competitiveness, but there are many viable options. I urge all traders to conduct their due diligence and select any of the regulated Forex brokers in competitive jurisdictions with a clean track record.


Is Forex trading regulated?

Most Forex trading remains unregulated in the over the counter (OTC) market, but all trustworthy Forex brokers maintain regulation. Traders should never trade with unregulated Forex brokers, regardless of the offer they receive.

What does a regulated broker mean?

A regulated broker satisfied requirements by the supervising authority to receive an operating license. It includes financial stability, staff training, support infrastructure, risk management, and compliance.

Are Forex brokers regulated?

Many Forex brokers have an operating license from one or multiple regulators, but numerous brokers operate as unregulated entities, including subsidiaries, from well-known brokers.

How are brokers regulated?

The level of regulation depends on the authority. Not all regulated Forex brokers provide the protection and security that traders believe. Some rules and stipulations render the trading environment uncompetitive. Others do not enforce regulations or punish violations. I recommend trading with a broker operating under the oversight of the regulatory bodies mentioned above.

Do I need a license to trade Forex?

No, a license for individual traders who manage their capital in their portfolios does not exist. Some brokers will demand traders fill out a questionnaire to determine if they are fit to trade. Several countries ban retail Forex trading, and traders should consult legal advice if in doubt.

Can I trade Forex without a broker?

Yes, it is possible to trade Forex via a bank, exchange office, or peer-to-peer. Trading via an online Forex broker is more convenient and efficient.

How do I know if my broker is regulated?

Each broker provides its regulatory information at the bottom of their homepage. Traders can confirm it by checking the license number against the database of the issuing regulatory authority.

Huzefa Hamid

I’m a trader and manage my own capital. I trade the major Forex pairs, some Futures contracts, and I rely entirely on Technical Analysis to place my trades. Today, I am also a Senior Analyst for DailyForex.com. I began trading the markets in the early 1990s, at the age of sixteen. I had a few hundred British pounds saved up (I grew up in England), with which I was able to open a small account with some help from my Dad. I started my trading journey by buying UK equities that I had read about in the business sections of newspapers. The 1990s were a bull market, so naturally, I made money. I was fortunate enough in my early twenties to have a friend that recommended a Technical Analysis course run by a British trader who emphasized raw chart analysis without indicators. Having this first-principles approach to charts influences how I trade to this day.