Who watches your broker?
A licence number means very little on its own. Across the 16 brokers we track, 13 different regulators show up in the small print — here's what each one actually does.
The three regulators behind most of our roster.
Well-resourced, actively enforced, and each backed by a real compensation scheme if the broker itself fails — though none of them compensate you for a losing trade.
Regulates AFSL holders and caps retail CFD leverage at 30:1 on major pairs, bans bonus incentives, and requires negative-balance protection. Firms need at least AU$1M in capital.
Requires client funds to be held separately from the firm's own money in tier-1 banks, and holds firms to strict capital and conduct rules. Widely regarded as one of the strictest regulators in the industry.
Regulates Cypriot Investment Firms under MiFID II, giving them passporting rights across the EEA. Capital requirements scale with licence type, from €125,000 up to €750,000.
Where the “Global” entities are usually licensed.
Many brokers run a separate entity, licensed somewhere with lighter capital and disclosure rules, for clients the tier-1 regulators don't cover. That isn't automatically a red flag. It usually means there's no compensation fund if the broker fails, so know which entity you're signing up with.
| Regulator | Jurisdiction | What it means | Brokers we track |
|---|---|---|---|
| FSA | Seychelles | Licenses forex/CFD dealers under a general Securities Dealer licence. No investor compensation scheme. | 6 brokers |
| SCB | Bahamas | Licenses forex dealing under the Securities Industry Act. Mid-tier offshore — more established than some offshore hubs, no compensation scheme for retail clients. | 5 brokers |
| FSCA | South Africa | Market-conduct regulator (successor to the FSB). Requires a local office and resident director; disputes go through the FAIS Ombud rather than a compensation fund. | 5 brokers |
| DFSA | Dubai (DIFC) | Regulates DIFC-based financial firms under strict capital and audit rules, but has no formal investor compensation scheme. | 3 brokers |
| CNMV | Spain | EU regulator under MiFID II. Backed by FOGAIN, which covers up to €100,000 per investor if a member firm becomes insolvent. | 1 broker |
| CBI | Ireland | EU regulator under MiFID II. Its Investor Compensation Scheme covers 90% of net loss up to €20,000. | 1 broker |
| BVI FSC | British Virgin Islands | Licenses "investment business" under BVI's Securities and Investment Business Act. Classic offshore licence, no compensation scheme. | 1 broker |
| VFSC | Vanuatu | Fast, low-cost "Dealers in Securities" licence. Widely regarded as minimal oversight, no compensation scheme. | 1 broker |
| CIMA | Cayman Islands | Regulates under the Securities and Investment Business Act. Requires leverage limits, fund segregation and AML checks, but sits in the offshore reputation tier. | 1 broker |
| CMA | Kenya | Created a specific "non-dealing online forex broker" category — licensed firms act only as an intermediary, never as the counterparty to your trade. | 3 brokers |
Broker counts come from the licence data on each profile. A broker can appear under more than one regulator if it runs several entities.
We check the licence number, not the logo.
Every regulator badge on a profile is backed by a licence number we checked against the broker's regulation page or the regulator's public register. Each broker's "Licences & protection" section shows the entity, registration number and regulator.