All Licensed Brokers Description

LICENSED BROKERS: The world of trading the largest market on the planet can be pretty complex. From having to pick your broker to check out the license each broker has, then you check the spread and other considerations too.

A lot of forex traders have fallen victim to unregulated brokers and it is a shame since no legal actions can be taken against such regulators if things go south. Forex broker regulations are thus essential, they ensure that you’re trading with a broker that adheres to standard business norms, acts in your best interests, and offers some manner of financial protection.

Regulators around the world have tightened regulations to protect traders in recent years, with increased oversight from regulatory bodies such as the SEC in the US, the FCA in the UK, the FSCA in Australia, the FSA in South-Africa, and the CySEC in Cyprus.

Typically, Forex brokers are required to deal with top-tier financial institutions and liquidity providers, as well as to keep their client funds in separate accounts. Forex brokers also need to meet certain other criteria, such as capital and fiscal requirements.

How do you know the licensing your broker possesses and what does the license mean for you?

European regulatory bodies In light of the vast number of Forex & CFD brokers that are licensed by bodies in Europe, it is only fair that we start right there: There are many local regulatory bodies in the European Union, such as:

  • Bundesanstalt fürFinanzdienstleistungsaufsicht (BaFin) in Germany.
  • Swiss Financial Market Supervisory Authority (FINMA) in Switzerland.
  • Comisión Nacional de Mercado de Valores (CNMV) in Spain, Financial Market Authority (FMA) in Austria.
  • Comissão do Mercado de Valores Mobiliários (CMVM) in Portugal.
  • Malta Financial Services Authority (MFSA) in Malta.

One of the most attractive regions in Europe to set up a forex company in Cyprus, due to its advantageous fiscal and tax structure. So, if a financial company decides to set up shop in Cyprus, it will be registered, licensed, authorized, and operate under the Cyprus Securities and Exchanged Commission (CySEC), which monitors the financial markets with the support of the European regulatory authorities and the European Commission to protect traders.

But this company would also be able to legally offer its financial services in other countries in the EU and the EEA, and it will be registered in every local European regulatory body.

To be a CySEC Forex broker, a financial firm must follow certain rules, such as:

  • The initial share capital of at least €200,000, At least €750,000 in operating capital.
  • Submit regular financial statements, as well as yearly audit reports through certified independent third-party auditors.
  • Ensure the protection of client's funds by holding them in segregated accounts, and using top tier 1 banks and quality liquidity providers.
  • Adhere to the Investor Compensation Fund (ICF), which means that in case of bankruptcy, each client can recover up to €20,000.

Knowing that your broker is licensed by CySEC means that you are covered by these regulations. The UK The UK hosts the most important sales desk in the world, via its trading hub in London. It alone processes 36.9% of global OTC Forex turnover.

In order to prevent broker scams, financial malpractice, or other types of fraud affecting traders, there are 2 important financial regulatory bodies in the UK, the FCA, and the PRA. To be able to undertake financial services activities in the UK, a broker needs to be authorized by the Financial Conduct Authority (FCA).

This national regulatory body ensures consumer protection while guaranteeing the integrity of the financial markets in the UK. The Financial Conduct Authority (FCA), which belongs to the Bank of England, helps in developing ethical and professional standards to protect the financial firms it is responsible for so that in the case of a failing financial firm, there is no real impact to the financial markets or the taxpayers.

To be an FCA Forex broker, a broker should adhere to strict guidelines, such as:

  • Having at least £1,000,000 in operating capital, Submitting audit reports, and financial statements.
  • Ensuring the protection of client financial funds with the Financial Services Compensation Scheme (FSCS).

This scheme is about protecting clients in case of bankruptcy or insolvency. In the US With 19.5% of global OTC FX turnover, the United States is the world’s 2nd most important sales desk. To regulate the Forex markets, and other derivatives and OTC markets, there are 2 main regulatory bodies, the NFA and the CFTC, who work together.

The National Futures Association (NFA) helps investors to be more protected. The NFA also works to ensure its members respect their regulatory responsibilities for better market integrity, fighting scams, and fraud through best financial practices. To be an NFA and CFTC FX broker, a broker must follow the below rules:

  • Follow safe and transparent best market practices.
  • Hire knowledgeable and professional staff, use real facts and numbers in advertising and promotional materials without misleading traders.
  • Submit reports and financial statements that are later on published on the NFA website.
  • Follow the FIFO rule (first in, first out), never open positions against its clients.
  • Never allow hedging for traders.
  • offer a leverage effect of 50:1 maximum.
  • Keep client funds in segregated accounts.
  • Have at least $20,000,000 in operating capital.

South Africa

Regulation in the financial sector in South Africa used to be watched by the Financial Service Board (FSB) but now it is done by the Financial Sector Conduct Authority (FSCA).

The core mission of these regulatory bodies is to protect investors from losing money through scams and fraud thanks to a safer, more transparent, and reputable trading environment. The FSCA license covers several other Africa countries.

All of the brokers listed on this site are fully licensed but you can always doublecheck to be sure. If you would like to check If the license of your broker, you can check the following website respectively:

All Licensed Brokers
Easy Markets Review
Min. Deposit from $100
Leverage upto 1:400(1:30 for EU clients)
Trading Platforms easyMarkets Platform, MT4
Regulators ASIC, CySEC

VantageFX Review
Min. Deposit from $200
Leverage up to 1:500
Trading Platforms Web MetaTrader 4 MetaTrader 5
Regulators ASIC, FCA, CIMA

HYCM Review
Min. Deposit from $100
Leverage 1:500(1:30 for EU clients)
Trading Platforms Platforms: MT4 and MT5 (for now)
Regulators CIMA, CySEC, DFSA, FCA

NSB Review
Min. Deposit from $250
Leverage upto 1:50
Trading Platforms MetaTrader 5
Regulators MFSA

BlackBull Markets Review
Min. Deposit from $200
Leverage 1:500(1:30 for EU clients)
Trading Platforms MT4, MT5, WebTrader
Regulators FSPR, FSCL

Ava Trade Review
Min. Deposit from $100
Leverage up to 1:400 (1:30 for EU clients)
Trading Platforms Web,MetaTrader4, MetaTrader5,cTrader
Regulators ASIC, Central Bank of Ireland, FSCA, JFSA, JFFA, BVIFSC

Robomarkets Review
Min. Deposit from $100
Leverage 1:30
Trading Platforms Web, MetaTrader4, MetaTrader5,cTrader
Regulators CYSEC

Fortrade Review
Min. Deposit from $100
Leverage 1:30
Trading Platforms MT4, WebTrader, Mobile Trader
Regulators FCA, ASIC

PaxForex Review
Min. Deposit from $10
Leverage up to 1:500
Trading Platforms MetaTrader 4
Regulators None

FXPrimus Review
Min. Deposit from $1000
Leverage up to 1:1000
Trading Platforms Web, MetaTrader 4
Regulators CySEC, FSCA, VFSC

Think Markets Review
Min. Deposit from $5
Leverage up to 1:500
Trading Platforms Web, MetaTrader 4, MetaTrader 5, Specific
Regulators ASIC, FCA, FSCA

FXOpen Review
Min. Deposit from $1
Leverage up to 1:500
Trading Platforms Web, MetaTrader 4
Regulators ASIC, FCA

ICMarkets Review
Min. Deposit from $200
Leverage up to 1:500
Trading Platforms Web, MetaTrader 4, MetaTrader 5, cTrader
Regulators ASIC, CySEC, SFSA

FXTM Review
Min. Deposit from $10
Leverage up to 1:1000 (1:30 for EU and some non-EU clients)
Trading Platforms Web, MetaTrader 4 ,MetaTrader 5
Regulators FCA, CySEC, FSCA, FSC

XM Group Review
Min. Deposit from $5
Leverage 30:1(This Leverage applies to clients registered under the EU regulated entity of the Group. Leverage depends on the financial instrument traded.)
Trading Platforms Web, MetaTrader 4, MetaTrader 5
Regulators ASIC, CySEC, IFSC

FXCM Review
Min. Deposit from $50
Leverage up to 1:400 (1:30 for EU clients and UK clients)
Trading Platforms Trading Station, MetaTrader 4, Ninja Trader, Others
Regulators FCA, ASIC, FSCA

FP Markets Review
Min. Deposit from $100
Leverage up to 1:500
Trading Platforms Web, MetaTrader 4. MetaTrader 5, Specific
Regulators ASIC, CySEC

Axitrader Review
Min. Deposit from $No Minimum Deposit
Leverage up to 1:500 (1:30 for EU clients)
Trading Platforms WebTrader, Mobile Trading, MT4
Regulators  ASIC #AFSL number 318232,  SVGFSA #25417 BC 2019,  DFSA #Category 4 license with a "Retail" endorsement  FCA #509746