Choosing a regulated broker forex is the most important factor to ensure safety and credibility. In the article below, you will understand the benefits of trading with regulated forex brokers. At the same time, we will also introduce you to the top reputable regulated forex brokers in the market today. Let’s get started!
Who is a regulated broker forex?
A regulated broker forex is a professional who has registered as a member of government financial institutions. Accordingly, when an online trading broker is regulated, they must fully comply with the rules and regulations that govern the forex market.
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Benefits when trading with a regulated broker forex
Because Forex is the most vibrant financial market in the world, new brokers are constantly appearing. However, not all brokers are trustworthy, there are even scam floors, scams, profiting from traders. Therefore, choosing the right broker is very important. Regulated broker forex will protect the interests of traders in all cases:
Transparency
Regulated broker forex has been strictly evaluated and censored by leading reputable financial institutions. Based on that license, traders will not have to worry about the reputation of the exchange, the quality of operations or the problem of scam.
Segregate customer funds
Most brokers regulated by reputable financial authorities are required to separate client funds from the company’s funds, which are kept safely in top global banks. This is to ensure that the broker does not misuse trader funds.
Compensation in case of risk
Reputable Forex floors always have a compensation policy for traders in case the broker goes bankrupt or has a dispute. However, depending on the financial institution, traders will receive different levels of compensation.
Safety and security
Regulated broker forex often use encryption technologies to protect customers’ personal information or trading accounts. This helps to minimize the risk of asset loss as well as protect against attacks by bad guys.
Choosing licensed Forex brokers, supervised by reputable agencies and organizations in the world will help traders avoid fraud and loss of assets while protecting their trading interests legally in case of disputes with brokers.
Licenses from reputable organizations today
For convenience in researching and choosing, traders can refer to the list of licenses from reputable organizations currently listed below:
|
Country |
License / Regulatory Authority |
|
United States |
NFA and CFTC – National Futures Association and Commodity Futures Trading Commission |
|
United Kingdom |
FCA – Financial Conduct Authority |
|
Australia |
ASIC – Australian Securities and Investments Commission |
|
Cyprus |
CySEC – Cyprus Securities and Exchange Commission |
|
Germany |
BaFIN – Federal Financial Supervisory Authority |
|
Switzerland |
FINMA – Swiss Financial Market Supervisory Authority |
|
South Africa |
FSB – Financial Services Board |
|
New Zealand |
FSP NZ – Financial Service Providers Register |
|
Japan |
JFSA – Japan Financial Services Agency |
|
Hong Kong |
SFC – Securities and Futures Commission of Hong Kong |
|
Singapore |
MAS – Monetary Authority of Singapore |
|
Malta |
MFSA – Malta Financial Services Authority |
Top regulated broker forex in the market
Here are the top 5 forex brokers, all of which have international operating licenses, stable trading platforms, and are trusted by a large number of traders:
LiteFinance
LiteFinance, owned by LiteForex Investments Limited and LiteForex Europe Ltd, is headquartered in the Marshall Islands and has branch offices worldwide, including in Bulgaria, India, Indonesia, Malaysia, and more.
Founded in 2005, LiteFinance has achieved extremely impressive results to date. LiteForex (Europe) Limited, licensed by CySEC, license number 093/08.
For currency transactions, the platform supports flexible, free, and commission-free deposit and withdrawal methods at a variety of the world’s most reputable banks. Furthermore, the platform also offers the first account type with a minimum deposit of only 10$ but receives leverage of up to 1:1000 profit. This is an extremely ideal condition that allows traders from emerging markets and those with low budgets to access the financial market.
Additionally, LiteForex also offers popular investment products in the market such as stocks, bonds, cryptocurrencies, metals, energy, etc., on the MT4 and MT5 platforms. World Finance magazine rates the trading conditions of the exchange as very good, placing it in the top 100 in the global financial sector.
XTB
XTB, a regulated broker forex that is highly rated by traders for its reliability and safety. Since its establishment in 2002, the broker has accumulated nearly 20 years of experience in the market. Its range of online financial products is diverse, including stocks, forex, indices, cryptocurrencies, and more.
The broker is licensed by several top global financial authorities such as the FCA in the United Kingdom, CySEC in Cyprus, IFSC internationally, and KNF in Poland. These financial institutions strictly monitor the broker, and any improper trading activities are immediately eliminated.
XTB offers many advantages, such as no overnight fees when investing. Clients trading with either basic or advanced accounts do not incur any additional charges, including commissions. All trading costs are fully included in the spreads.
When your balance runs low, you can top up your account using credit or debit cards in GBP or EUR (free of charge). Only when depositing via PayPal, Paysafe, Neteller, or other applications might you be required to pay a small fee.
Unlike other forex brokers, XTB only provides MT4 and xStation 5 trading platforms and has not yet supported MT5. However, MT4 remains the top choice thanks to its large trading community and the wide range of indicators and Expert Advisors (EAs) developed by third-party programmers.
In addition, the broker supports an advanced integrated trading calculator that helps analyze pip value, margin, spread, and potential profit or loss. This allows you to make smarter trading decisions without having to perform any manual calculations.
Exness
Exness can be considered one of the leading companies in the forex industry. With more than 13 years of operation and a team of experts in the field, Exness has successfully gained the full trust of its clients.
During its rapid and continuous growth, Exness has been licensed and regulated by several reputable financial authorities, including CySEC in Cyprus, FSA in Seychelles, and FCA in the United Kingdom.
Exness has built a safe and convenient trading environment. Brokerage fees at Exness are significantly lower compared to trading independently. By 2019, the company had reached an average monthly trading volume of 325 billion USD, serving more than 72,700 clients worldwide.
The broker also offers some of the highest leverage levels in the market. On the MT4 platform, leverage is unlimited, while on MT5, it is set at 1:2000, which is considered very high. Additionally, leverage may vary depending on account types and deposit amounts.
Higher leverage provides traders with more opportunities to generate profits in the volatile financial markets. Moreover, once profits are made, you can withdraw your funds instantly with Exness’s fast withdrawal feature, allowing transactions to be completed within just a few seconds.
XM Global
XM was established in 2009 and operates under Trading Point Holdings Ltd in Cyprus. The broker currently has offices in several countries, including London, Athens, and Sydney.
After more than 15 years of operation, XM serves over 15 million clients from 196 countries. However, XM Global Limited does not provide services to residents of the United States, Canada, Argentina, Israel, and Iran.
Which licenses does XM hold?
- FSC Belize (Financial Services Commission, Belize) – License No. 000261/27
- FSC Mauritius (Financial Services Commission, Mauritius) – License No. GB23202700
- FSA (Financial Services Authority, Seychelles) – License No. SD190
Pepperstone
Pepperstone is a forex and CFD broker founded in 2010 in Melbourne, Australia, by a group of experienced traders. Today, the broker serves over 300,000 traders across 150 countries, with an average daily trading volume of 12.55 billion USD.
Thanks to this growth, Pepperstone has become one of the largest forex brokers in the world. The platform offers a wide range of products and is regulated by several globally recognized financial authorities.
Which licenses does Pepperstone hold?
- ASIC (Australian Securities & Investments Commission, Australia) – License No. 414530
- FCA (Financial Conduct Authority, United Kingdom) – License No. 684312
- CySEC (Cyprus Securities and Exchange Commission) – License No. 388/20
- BaFin (Federal Financial Supervisory Authority, Germany) – License No. 151148
- DFSA (Dubai Financial Services Authority) – License No. F004356
- SCB (Securities Commission of The Bahamas) – License No. SIA-F217
- CMA (Capital Markets Authority, Kenya) – License No. 128
Conclusion
Choosing a regulated broker forex is an important step to ensure safety and success in investing. Hopefully, this article has provided useful information to help you choose the right trading platform. Wishing you success!
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