Best Regulated Forex Brokers 2020

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In order to be comfortable trading, you have to be comfortable with your chosen Forex broker. The best way to get comfortable is by working with a regulated forex broker operating under the supervision of a major Forex regulator which works to protect you.

The world of Forex trading is made up of hundreds of Forex / CFD brokers who offer their services via internet trading platforms. The advertising put forward by most of them can be very alluring, but it is vital to only work with certified forex brokers to give you the benefit of knowing they are working in a reliable and compliant manner which meets the laws and rules of their country of domicile. The ability of these regulators to act against delinquent brokers where necessary is an effective tool and deterrent against bad brokers.

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image Top Rated

Min. Deposit

$100


Bonus

Up To $5000


Trading Platform


Max. Leverage

1:400


Regulation

MiFID, Central Bank of Ireland, FSA, ASIC, BVI, FFAJ, FSCA, ADMG - FRSA

Highly regulated, choice of fixed or floating spreads

Min. Deposit

$10


Bonus

30% Welcome Bonus


Trading Platform


Max. Leverage

1:2000


Regulation

CySEC, FCA, FSC

Best all-around: high floating leverage + fast execution

Min. Deposit

$50


Bonus

None


Trading Platform


Max. Leverage

1:50


Regulation

FCA, ASIC, AMF, FSCA

No dealing desk execution + wide range of trading apps

Min. Deposit

$100


Bonus

None


Trading Platform


Max. Leverage

1:30


Regulation

CySEC, FCA, ASIC, FMA, FSB, MAS

Wide range of CFDs + trailing stop losses

Min. Deposit

$250


Bonus

None


Trading Platform


Max. Leverage

1:500 (ASIC entitiy only), 1:30 CySEC Retail, 1:300 CySEC Pro


Regulation

CySEC, FCA, ASIC, FSC, FSCA

Excellent educational offerings

What is Forex Regulation?

Forex regulation is a system where a country empowers an official body with legal powers with a duty to oversee all the Forex / CFD brokerages operating from within that country. Sometimes brokers from outside the country are also supervised to some degree in order to receive a license to operate. Regulatory supervision of your chosen forex broker is critical because it adds a layer of strong responsibility which lets you know your broker works within the parameters of mandated license requirements. The mandate for a licensed broker often stipulates they have a significant amount of money held as a safeguard with financial institutions as a capital insurance, that their company has worked in a compliant way and has no major unresolved legal violations, and that they are not in any significant conflict of interest with their clients.

Why Should You Work with a Regulated Broker?

Most importantly, you will know that your money is more likely to be secure, and your transactions transparent. While you and your Forex broker hope there will never be a need for complaint, unfortunately issues regarding trading and the status of your account may need to be addressed even if caused only by technological bugs, communication hiccups or an administrative backlog. Working with a certified broker helps you know the company you are working with is organized and efficient enough to properly handle important information and requests.
A Forex regulatory body should ensure that the financial assets your certified forex broker are offering have been approved and that the legitimate broker allows and monitors only the specified maximum leverages which may be allowed. Registered Forex brokers are also often required by their regulator to check on and know their traders’ respective skills and experience before allowing them to trade. Regulators also often apply different limits between categories of “retail” or “professional” traders according to such criteria.

Questions surrounding the status of opening accounts, personal information shared, deposits, withdrawals, and an assortment of trading concerns and potentially the closing of your account are governed in many respects by the Forex authority which has issued your broker its regulatory license.
Issues such as the exact personal information that must be provided when you open an account are derived from national and international regulations such as “Know Your Client” and “Anti-Money Laundering”. While they may sometimes seem intrusive, they protect you as a client and your Forex broker and are critical nowadays in all well-regulated jurisdictions.
When depositing money with a credit card or cash transfer, working with a legitimate Forex broker ensures you will get prompt responses regarding the location of your money and when that money will become available for trading. Credit card deposits are frequently faster to get access to and trade, but before you engage in trading, your personal identity provisions will usually have to be approved by your regulated forex broker.
Regarding withdrawals of funds, it is important to know these requests will be processed without unnecessary lengthy delays. Working with a regulated Forex broker allows for peace of mind that transactions will take place in a timely manner. Sometimes traders will have questions about the exact sequence of time regarding the placement of a trade, types of orders and prices their trades were ‘filled’. A regulated broker is tasked with providing you, the client, with these answers due to transparency mandates because of their duties imposed by their regulatory authority.
Finally, being regulated can be vital for client interests when a Forex broker goes bankrupt. Working with a regulated broker usually ensures that your chosen licensed broker has deposited money which is held in a bank under term imposed by the regulatory authority. Also, the working mandates of a licensed broker ensure your money is being kept in a bank which is recognized by this authority. If your broker goes out of business, you will have the knowledge that you probably have protection and jurisdictional insurance against a sudden collapse and have the ability to contact a supervisory forex regulator and act accordingly.

Major Forex Regulators and their Significance

Regulatory authorities such as the National Futures Association and Commodity Futures Trading Commission in the U.S.A., the Financial Conduct Authority in the U.K., and the the Financial Services Conduct Authority (FSCA) in the Republic of South Africa, and the Cyprus Securities and Exchange Commission (CySEC) in the Republic of Cyprus are some of the major regulators overseeing Forex and CFD brokers and protecting their clients.
The significance of financial regulators has grown strongly during the past couple of decades. The powers of most regulators have increased as the world of trading online has multiplied in popularity and become a huge part of the investing and speculating worlds. You are now able to look at regulatory authorities through their own websites which have information on their history, laws and mandates, and current issues which concern the public. These authorities have been created to protect you as a consumer and you should try to become familiar with the regulatory body which has issued your broker’s license. Besides the entities listed above, there is a wide body of other regulatory agencies which effectively work in many countries. Australia, a major retail Forex trading hub, has the Australian Securities and Investment Commission (ASIC); Dubai has the DFSA which is the Dubai Financial Services Authority. Japan, Hong Kong and China all have responsible governing authorities which oversee Forex brokers working under their jurisdictions also.

How Forex Regulations Can Protect You

The two most important ways that Forex regulators and their regulations can protect you as a client are in ensuring the safety of your deposit and making sure that your broker can’t cheat you. If your complaints to your broker about a problem are not adequately addressed, you can always complain to the relevant regulator, which then has a legal responsibility to do something about it and the power to compel your Forex broker to take action and provide redress where it is justified.
There are also a number of minor ways that Forex regulators help to protect clients – from themselves. Good examples of this include limiting the maximum leverage available to retail Forex traders, banning bonuses, and requiring Forex brokers to publish the percentage of their trader clients who are net winners and losers. Most of these examples come from the European Union but other regulatory bodies conduct similar practices. This type of “protecting traders from themselves” can be criticized as paternalistic, but any trader can benefit from considering why most traders lose money, and from seeing which Forex brokers’ clients have relatively superior win rates.
Finally, as Forex regulators always provide publicly accessible websites, you can always check a Forex broker’s license before making a deposit at the site of their regulator, if they are regulated. You may also be able to access other relevant financial and legal information about the broker in question.