There is no question as to the necessity of trading with a regulated broker. This can’t be emphasized enough. A regulatory authority assures the economic strength of the broker and the integrity towards its traders. Without regulation, traders are left without any resource to back up the legality of the broker they are using.
The leading regulatory bodies are: US - National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC), Europe - Financial Services Authority (FSA UK) and Cyprus Securities and Exchange Commission (CySEC). Check out the full list of trading related regulations here.
Before deciding on a broker, first look into their regulation. Brokers with more than one supervisory body should be considered above brokers with only one. In addition, the strength of the regulatory authority is a key factor in the trustworthiness of the broker.
Daily Forex researched the top licensed Forex brokers below in order for you to choose the most secured and reliable broker.
Highly regulated, choice of fixed or floating spreads
Up To $5000
MetaTrader 4, Proprietary platform, Web-based
MiFID, Central Bank of Ireland, ASIC, FSC, BVIFSC
Best all-around: high floating leverage + fast execution
Sign Up - 20%
MetaTrader 4, MetaTrader 5
CySEC, FCA, IFSC
No dealing desk execution + wide range of trading apps
Wide range of CFDs + trailing stop losses
CySEC, Financial Conduct Authority (FCA), ASIC
Excellent educational offerings
MetaTrader 4, Proprietary platform
CySEC, ASIC, FSB