Forex brokers often require a license in order to operate. This is so that local regulatory authorities can keep track of which companies offer online trading and follow up to ensure that forex traders are getting a good, fair service. Here is a list of licensed forex brokers.
Broker | Features | Broker Review | Visit |
 | * 1:1000 leverage * 1200+ instruments * $5 min. deposit * CMA licence | ||
 | * 1:500 leverage * 1000+ instruments * $200 min. deposit * CMA licence | ||
 | * 1:400 leverage * CMA licence | ||
 | * 1:500 leverage * 10,000 instruments * $100 min. deposit * ASIC licence | ||
 | * 1:500 leverage * 80+ instruments * $200 min. deposit * ASIC licence | ||
 | * 1:1000 leverage * 200+ instruments * $1 min. deposit * CySEC licence | ||
 | * 1:2000 leverage * 250+ instruments * $50 min. deposit * CMA licence | ||
 | * 1:888 leverage * 1000+ instruments * $5 min. deposit * CySEC licence |
Why Use A Licensed Forex Broker?
If you want to be a forex trader then you will need to open an account and deposit money. That means you need to pick a forex broker that you can trust to look after your funds and to give you your money back when you ask. The easiest way to find a trustworthy broker is to check their licences. Here’s why.
- Client Fund Safety – Licensed brokers keep clients’ funds in separate accounts at top tier banks. They also offer other forms of client fund safety including negative balance protection, investor compensation schemes, and encrypted transactions. This means that your money is held in secure locations and can’t be used for operational purposes.
- Business Ethics and Fair Practices – Licensed brokers are required to follow certain rules and regulations, as determined by local authorities. This ensures that forex brokers treat their clients fairly and behave in an ethical, transparent manner at all times. This means that there is a minimum standard of service and that you can expect to be treated well.
- High Quality Trading Services – Licensed forex brokers are also required to meet certain service requirements and standards. This ensures that their clients get a high quality service with fast trade executions, reasonable pricing, no hidden fees, and transparency regarding their operational status. This also means that you’re working with optimal conditions and have a better chance of making profitable trades.
- Deposit Insurance (Compensation Schemes) – Many licensed forex brokers also take part in deposit protection programs. These programs are designed to protect clients and to compensate them if their forex brokers go out of business for a number of reasons. For example, the ICF and FSCS reimburse the clients up to €20000. This means that if you choose a regulated forex broker then you may benefit from an added layer of fund protection.