Currently forex brokers are usually better regulated in UK, US,Switzerland,Australia.
1 FCA UK (FSA UK) regulated Forex brokers
1.1 Firm Status in FCA, Authorised and EEA Authorised
EEA Authorised -A financial services firm authorised in another European Economic Area (EEA) state that has a ‘passport’ to offer certain products or services in the UK and other EEA countries. The EEA includes the EU states, plus Iceland, Norway and Liechtenstein. These firms are regulated in their home country and must meet standards which have been agreed across all EEA countries.
The services or products an EEA authorised firm can offer in the UK will be detailed in the ‘Passports’ section of their record on the Financial Services Register.
Authorised -A firm that has been given permission by the FCA to carry out regulated activities. If a financial services firm is based in a foreign country outside the EEA it can still operate in the UK but will need to be authorised by FCA and will appear on the Financial Services Register as ‘Authorised’.
Find out more about foreign firms on the Financial Services Register. http://www.fca.org.uk/firms/systems-reporting/register/use/foreign-firms
1.2 Firm Status: EEA Authorised Forex Brokers List
ACFX
AFX Capital
AvaTrade
Blackwell Global (CY)
Bulbrokers
Citypoint Trading
Deltastock
ECMarkets
Finexo
Forex Time (FXTM)
FOREXYARD
FX Global Markets (FXGM)
FxNet
FxPulp
FXCC
iFOREX
IKON Group
IronFX
Markets.com
MAYZUS
Saxo Bank
Traders Trust
Trading212
TradingForex.com
UFXMarkets
Windsor Brokers
XForex
XGLOBAL Markets
XM
1.3 Firm Status: Authorised Brokers List
Abshire-Smith
ActivTrades
Alpari UK
Alpha Capital Markets
Atom8
B2S Forex
Bulls And Bears Forex UK
Boston Prime
CFH Clearing
City Credit Capital
City Index
CMC Markets UK
CMS Forex UK
Darwinex
DF Markets
FOREX.com UK
FX Solutions UK (City Index)
FXCM
FxPro UK
GAIN Capital
GFT Global Markets UK
GKFX
Hantec Markets
Hirose Financial UK
HY Markets UK
ICAP
ICM Capital
IG Markets
IKON Markets
Interactive Brokers (UK) Ltd
InterTrader
Kerford Investments (UK)
LCG FX
LMAX
London Capital Group (LCG)
MB Trading
MIG Capital
Monex Capital Markets
Moneycorp Markets
Nexsus Financial Markets
OANDA
One Financial Markets
Plus500UK
Price Markets
Raphaels Bank
RBS – Royal Bank of Scotland
RPD FX
Sucden Financial
SVSFX
Tradenext
Valbury Capital
Valutrades
Vantage FX UK
XTB UK
YouTradeFX
1.4 FCA Regulated Brokers Comparison
Broker
Type
Regulation
Minimum Deposit
Max leverage
Minimal Lot
Spreads
Lowest spreads EURUSD
Xe Markets(Visit)
DMA/STP
CySEC, FSA UK
$5
500
0.01
variable
>1
Plus500(Visit)
MM
FSA UK
$100
50
-
fixed
2
IronFX(Visit)
DMA/STP, STP & MM
CySEC, FSA UK, BaFin, CNMV
$500
500
0.01
variable
>
0.8 - Mini
0.7 - Standard
YouTradeFX(Visit)
STP
ASIC, FSC Mauritius, FSA UK (in process)
$100
500
0.01
fixed
4 - Mini
3 - Standard
HY Markets(Visit)
MM
FSA UK
$50
300
0.02
fixed
5 - Mini
4 - Standard
Admiral Markets(Visit)
ECN/STP & MM
FSA of Estonia, FSA UK
$1
500
0.01
fixed & variable
1
FOREXYARD(Visit)
ECN/STP & MM
CySEC, FSA UK
$100
200
0.01
fixed & variable
3 - Mini & Standard
>0 - 1.5 - ECN
FXCC(Visit)
STP & ECN/STP
CySEC, FSA UK
$100
500
0.01
variable
>0.1
FX Solutions UK(Visit)
MM
FSA UK, ASIC
$250
400
0.01
fixed
3
FXCM UK(Visit)
ECN/STP & STP
FSA UK, ASIC
$25
400
0.01
variable
>
1.5 - Mini
1 - Standard
OANDA(Visit)
MM
NFA, CFTC, FSA UK, FSA Dubai, IIROC, MAS Singapore
$1
50
0.001 or less
variable
>0.9
IBFX - Interbank FX(Visit)
DMA/STP + MM
ASIC; FSA UK - pending
$1
400
0.01
variable
>0 - 1.8
FOREX.com(Visit)
MM
NFA, CFTC, FSA UK
$250
200
0.01
variable
>1 - 1.5
MB Trading(Visit)
ECN/STP
NFA, CFTC, FINRA, SIPC, FSA UK
$400
50
0.01
variable
>0.1 - 0.8
GFT(Visit)
MM
FSA UK, ASIC
$200
400
0.1
variable
>1
Interactive Brokers(Visit)
ECN/STP
NFA, CFTC, FSA UK, IIROC, NYSE, FINRA, SIPC
no
40
0.25
variable
>0.5
London Capital Group (LCG)(Visit)
ECN/STP
FSA UK
no
100
1
variable
>1 or
Alpari(Visit)
ECN/STP & MM
FSA UK, NFA, CySEC
$200
500
0.01
variable
>
1.6 - Mini & Standard
0 - ECN
FXGM - Forex Global Market(Visit)
STP
CySEC, FSA UK, BaFin, FINMA
$250
300
0.25
fixed
5 - Mini
4 - Standard
Liquid Markets(Visit)
STP
FSA UK, CySEC
$500
500
0.05
fixed
3 - Mini
2 - Standard
Finexo(Visit)
MM
FSA UK, CySEC, BaFin, CONSOB, AFM, CNMV
$100
200
0.01
fixed
5 - Mini
3 - Standard
Hantec Markets(Visit)
ECN/STP & STP
FSA UK, ASIC
$1,000
200
0.01
variable
>1.6
Valbury Capital(Visit)
STP
FSA UK
no
100
0.25
variable
>1.5 - 2.0
Abshire-Smith(Visit)
STP & MM
FSA UK
$500
200
0.1
fixed & variable
>1.4
Finotec(Visit)
ECN/STP & STP
FSA UK
$200
200
0.1
variable
>0.7
GKFX(Visit)
STP & MM
FSA UK
$1
400
0.1
fixed & variable
>1.5
Traders Trust(Visit)
STP
CySEC, FSA UK, BaFin,?Banque de France, CNMV Spain, CONSOB, FI of Sweden, AFM Netherlands, Danish FSA
$100
500
0.1
variable
>
1.8 - Mini
0.9 - 1.6 - Standard
ActivTrades(Visit)
DMA/STP & MM
FSA UK
€ 250
400
0.01
fixed & variable
2 - Standard
1.5 - Interbank
DF Markets(Visit)
ECN/STP & MM
FSA UK
$1
200
0.01
fixed & variable
2
One Financial Markets(Visit)
ECN/STP & STP & MM
FSA UK
$250
200
0.01
fixed & variable
2 - Mini & Standard
0.2 - 0.8 - ECN
CMS Forex(Visit)
MM
NFA, CFTC, FSA UK, FSA Japan
$500
50
0.01
variable
>0.9 - 2.1
Vantage FX(Visit)
DMA/STP
FSA UK
?350
500
0.01
variable
>0.5 - 2.3
Arab Financial Brokers (AFB)(Visit)
STP
Ministry of Commerce and Industry in Kuwait, FSA UK, CySEC.
$50
400
0.01
fixed
3 - Mini
2 - Standard
Windsor Brokers(Visit)
MM
CySEC, FSA UK, BaFin, AMF, ICF
$100
500
0.01
variable
>2
Markets.com(Visit)
MM
CySEC, FSA UK, BaFin
$100
200
0.01
fixed & variable
>2.2 - 3
FxPro(Visit)
ECN/STP & MM
CySEC, FSA UK
$500
500
0.1
variable
0.8
ACFX(Visit)
MM
CySEC, FSA UK
$50
500
0.01
fixed
>
3 - Mini
2 - Standard
0 - Zero spread
Deltastock AD(Visit)
ECN/STP & MM
FSC of Bulgaria, FSA UK
$100
200
0.01
fixed & variable
2 - Regular
0.1 - (>) Level 2 trading
1.5 About FSA and FCA, PRA
The Financial Services Authority (FSA) was a quasi-judicial body responsible for the regulation of the financial services industry in the United Kingdom between 2001 and 2013. It has now become two separate regulatory authorities, The Financial Conduct Authority (FCA, www.fca.org.uk) and the Prudential Regulation Authority at (PRA, www.bankofengland.co.uk).
The FCA regulates financial firms providing services to consumers and maintains the integrity of the UK’s financial markets. It focuses on the regulation of conduct by both retail and wholesale financial services firms. The FCA is structured as a company limited by guarantee.
The PRA is structured as a limited company wholly owned by the Bank of England and is responsible for the prudential regulation and supervision of banks, building societies, credit unions, insurers and major investment firms. It sets standards and supervises financial institutions at the level of the individual firm.
1.6 Requirements for FCA regulated brokers
Ensure & monitor the quality of the bank in which clients funds will be held. The bank must be approved by FCA.
Keep clients’ funds separate from company funds, clients’ funds can never be treated and used as company assets including the situation when the company becomes insolvent.
Submit financial reports to the FCA regularly and undergo annual audit.
1.7 The Financial Services Compensation Scheme (FSCS)
Even if a broker is insolvent you may still be able to claim compensation through the FSCS.
The compensation limits for forex market: A client receive 100% of the first £30,000 + 90% of the next £20,000, up to £48,000.( http://www.fscs.org.uk/what-we-cover/eligibility-rules/compensation-limits/investment-limits/)
The FSCS(http://www.fscs.org.uk/) is an independent body and a fund of last resort for customers of authorised financial services firms. Generally, it covers claims against firms who are insolvent and unable to pay claims against themselves. The FSCS is funded by levies on FCA-authorised firms. Their costs are made up of management expenses and compensation payments. The service is free to individual consumers.
1.8 FCA Register-Protect yourself from unauthorised forex brokers
Beware of cloned firms (fraudsters pretending to be from a firm authorised by FCA). If you deal with an unauthorised firm you will not be covered by the Financial Ombudsman Service (FOS) or Financial Services Compensation Scheme (FSCS) if things go wrong.
Check FCA Register: http://www.fca.org.uk/firms/systems-reporting/register
The Register has information on forex brokers that are regulated by FCA. Firm status must be ‘Authorised’ or ‘EEA Authorised'(not ‘registered’).
If a forex broker does not appear on the Register but claims it does, contact Consumer Helpline of FCA on 0800 111 6768.
Unauthorised firms and individuals to avoid:
FCA: http://www.fca.org.uk/consumers/protect-yourself/unauthorised-firms/unauthorised-firms-to-avoid
Foreign regulators: http://www.fca.org.uk/consumers/protect-yourself/unauthorised-firms/foreign-warnings
2 NFA & CFTC US regulated forex brokers
2.1 List of NFA registered Forex brokers
ATC Brokers
AxiTrader
Back Bay FX
Capital Market Services – CMS Forex
CitiFX Pro (Citigroup)
Cobra Trading
CompassFX
eToroUSA
FastBrokers
FIPFX
Forex.com – Gain Capital Group
Fortress Capital
FX Renew
FXCM
FXDD
GFT – Global Futures & Forex (Institutional)
HotspotFX
IG Markets
IKON Global Markets
Interactive Brokers
Interbank FX
Lightspeed Financial
M2 Forex
MB Trading
OANDA
Open E Cry (OEC)
Rosenthal Collins Group
Spot Trader FX
thinkorswim
TradersChoiceFX
TradeStation Securities
Zecco Forex
2.2 NFA registered Forex brokers Comparison (Brokers for US Traders)
Broker
Type
Regulation
US clients
Mini account
Minimal Lot
Spreads
Lowest spreads EURUSD
eToro(Visit)
STP
eToroUSA: NFA, CFTC
yes (eToroUSA)
$50
0.01
fixed
3
FX Solutions(Visit)
MM
NFA, CFTC, FSA UK, ASIC
yes
$250
0.01
fixed
3
FXCM(Visit)
ECN/STP & DMA/STP
NFA, CFTC, FSA UK, ASIC
yes
$50
0.01
variable
>
1.5 - Mini
1 - Standard
FXDD(Visit)
ECN/STP & MM
NFA, CFTC
yes
$250
0.01
variable
>2
OANDA(Visit)
MM
NFA, CFTC, FSA UK, FSA Dubai, IIROC, MAS Singapore
yes
$1
0.001 or less
variable
>0.9
IBFX - Interbank FX(Visit)
DMA/STP + MM
NFA, CFTC, ASIC
yes
$1
0.01
variable
>0 - 1.8
FOREX.com(Visit)
MM
NFA, CFTC, FSA UK
yes
$250
0.01
variable
>1 - 1.5
MB Trading(Visit)
ECN/STP
NFA, CFTC, FINRA, SIPC, FSA UK
yes
$400
0.01
variable
>0.1 - 0.8
GFT(Visit)
MM
NFA, CFTC, ASIC, FSA UK, DGCX, DMCC
yes
$250
0.1
variable
>0.8
Interactive Brokers(Visit)
ECN/STP
NFA, CFTC, FSA UK, IIROC, NYSE, FINRA, SIPC
yes
no
0.25
variable
>0.5
Alpari(Visit)
ECN/STP & MM
NFA, CFTC, FSA UK, CySEC
yes
no
0.01
variable
>1
CMS Forex(Visit)
MM
NFA, CFTC, FSA UK, FSA Japan
yes
$500
0.01
variable
>0.9 - 2.1
ATC Brokers(Visit)
ECN/STP & STP
NFA, CFTC
yes
$5,000
0.1
variable
>0.1
ATG Marketplex -Aaron Trading(Visit)
ECN/STP & STP
NFA, CFTC
yes
$3,000
0.1
variable
>1
FastBrokers(Visit)
ECN/STP & MM
NFA, CFTC
yes
$500
0.01
fixed & variable
>
2 - Mini
0 - ECN
IKON Global Markets(Visit)
ECN/STP & MM
NFA, CFTC
no
$1,000
0.01
variable
>0.8 - 2
Zecco Forex(Visit)
MM
NFA
yes
$500
0.1
variable
>2.3
TradersChoiceFX(Visit)
ECN/STP & STP & MM
NFA
yes
$250
0.01
fixed & variable
>1 - 2.1
2.3 About NFA & CFTC
National Futures Association (NFA) is the self-regulatory organization(non-profit) for the U.S. derivatives industry, including on-exchange traded futures, retail off-exchange foreign currency (forex) and OTC derivatives (swaps). NFA’s mission is to safeguard market integrity and protect investors.
Commodity Futures Trading Commission (CFTC) is the US government agency that protect market participants and the public from fraud, manipulation, abusive practices and systemic risk related to derivatives – both futures and swaps.
NFA’s activities are overseen by CFTC.
NFA membership is mandatory for all forex brokers(including introducing brokers) in US.
NFA regulated brokers:
Must follow strict rules set by NFA to ensures the safety of clients’ assets.
Must have net capital of no less than $15 000 000 to guarantee client’s positions. This minimum raises to $20 000 000 starting from May 19th, 2009.
Must report their account balances to NFA weekly.
Must have comprehensive yearly audits.
2.4 NFA register
Background Affiliation Status Information Center (BASIC) http://www.nfa.futures.org/basicnet/
2.5 Some NFA/CFTC rules
Non-US brokers or brokers that are not registered in NFA are not allowed to accept US citizens as clients.(They can accept non-US citizens that live in US)
Maximum leverage of a US forex broker can offer should be 50:1 on major currencies and 20:1 on minors since October 18th, 2010.
US Forex brokers are not allowed to offer leveraged commodities and precious metal trading (including Gold & Silver) to retail clients.So they can only offer those on a 1:1 non-leveraged basis(requires substantially more margin).(Since July 15th, 2011, enforced by CFTC)
2.6 US Forex brokers with high leverage
US brokers usually offer a higher leverage to international clients with non-US accounts. They usually have international branches.
3 Swiss Regulated forex brokers
Swiss Bank Directive 3a mandates each and every broker operating out of Switzerland to obtain a banking license from the Swiss Financial Market Supervisory Authority (FINMA).Applicants must comply with a list of draconian requirements, including sufficient capitalization (the lower threshold for that is approximately CHF 20 million).
Swiss forex brokers are obliged to sign the Swiss Banks and Securities Dealers agreement, which protects all customer deposits of up to CHF 100,000.
Other regulatory organs include the Swiss Bankers Association, the Swiss Federal Department of Finance, the Swiss Federal Banking Commission, etc.
Forex brokers from Switzerland are very popular among the wealthy traders.
3.1 Swiss regulated brokers list
Broker
Type
Country
Regulation
Mini account
Max leverage
Minimal Lot
Spreads
Lowest spreads EURUSD
Dukascopy (Suisse) SA(Visit)
ECN/STP
Switzerland
FINMA, ARIF, KPMG, SCF Revision SA, is a licensed bank
$5000 (Swiss)
100
0.01
variable
>
0.5 - 1 - Mini-
0.5 - 1 - Standard
MIG BANK(Visit)
DMA/STP & MM
Switzerland
FINMA, KMPG, is a licensed bank
$2,000
100
0.1
variable
>0.9
ACM (Swissquote Bank)(Visit)
STP
Switzerland
FINMA, E&Y, SGS, CCIG, ACI, KPMG
$2,000
100
0.1
fixed
4 - Mini
1.5 - 2.8 - Standard
CIM Bank(Visit)
ECN/STP & STP
Switzerland
SBA, FINMA, is a licensed bank
$5,000
100
0.1
variable
>
1 - 3 - Mini & Standard
0.7 - ECN
4 Other Forex Regulatory Bodies
4.1 International organizations:
EU Commission
ec.europa.eu
Ernst & Young (E&Y)
www.ey.com
Financial Markets Association (ACI)
www.aciforex.com
KPMG
www.kpmg.com
4.2 United Kingdom:
UK Financial Services Authority (FSA UK)
www.fsa.gov.uk
The Financial Conduct Authority (FCA)
www.fca.org.uk
The Prudential Regulation Authority (PRA)
www.bankofengland.co.uk
Financial Services Compensation Fund (FSCS)
www.fscs.org.uk
4.3 United States:
Commodities and Futures Trading Commission (CFTC)
www.cftc.gov
Financial Industry Regulatory Authority (FINRA)
www.finra.org
National Futures Association (NFA)
www.nfa.futures.org
New York Stock Exchange (NYSE)
www.nyse.com
Office of the Comptroller of the Currency (OCC)
www.occ.treas.gov
US Securities and Exchanges Commission (U.S. SEC)
www.sec.gov
Chicago Board of Trade (CBOT)
www.cmegroup.com
Securities Investor Protection Corporation (SIPC)
www.sipc.org
4.4 Australia:
Australian Securities and Investment Commission (ASIC)
www.asic.gov.au
4.5 Switzerland:
Association Romande des Intermediares Financiers (ARIF)
www.arif.ch
Swiss Bankers Association (SBA)
www.swissbanking.org
Swiss Federal Banking Commission (SFBC)
www.finma.ch
Swiss Federal Department of Finance (SFDF)
www.efd.admin.ch
Swiss Federal Finance Administration (SFFA)
www.efv.admin.ch
Swiss Financial Market Supervisory Authority (FINMA)
www.finma.ch
Swiss National Bank (SNB)
www.snb.ch
PolyReg
www.polyreg.ch
Geneva Chamber of Commerce (CCIG)
www.ccig.ch
Organisme d’Autoregulation des Gerants de Patrimoine (OAR-G)
www.oarg.ch
4.6 Cyprus:
Cyprus Securities and Exchange Commission (CySEC)
www.cysec.gov.cy
4.7 France:
Autorite des marches financiers (AMF)
www.amf-france.org
Banque de France
www.banque-france.fr
Credit Institutions and Investment Firms Committee (CECEI)
www.banque-france.fr
4.8 Germany:
Federal Financial Supervisory Authority (BaFin)
www.bafin.de
4.9 Canada:
British Columbia Securities Commission (BCSC)
www.bcsc.bc.ca
Canadian Investor Protection Fund (CIPF)
www.cipf.ca
Financial Transactions and Reports Analysis Center of Canada (FINTRAC)
www.fintrac.gc.ca
Investment Industry Regulatory Organization of Canada (IIROC)
www.iiroc.ca
Ontario Securities Commission (OSC)
www.osc.gov.on.ca
Ombudsman of Banking Services and Investments (OBSI)
www.obsi.ca
4.10 Japan:
Financial Services Agency of Japan (FSA Japan)
www.fsa.go.jp
Japan Securities Dealers Association (JSDA)
www.jsda.or.jp
Japan Investor Protection Fund (JIPF)
jipf.or.jp
Tokyo Commodity Exchange (TOCOM)
www.tocom.or.jp
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