Key finding:
81% of forex brokers (52 of 64) hold at least one Tier 1 licence
Our tier classification places regulators into four groups based on the stringency of their oversight framework, enforcement track record, and the protections they guarantee to retail clients. Tier 1 and Tier 2 represent meaningful protection; Tier 3 is partial; Offshore is caveat emptor.
64
Total Brokers
52
Tier 1 Regulated
81% of total
1
Offshore / No Tier
2% of total
41
3+ Licences
Broadest coverage
Primary regulation tier for each forex broker, determined by the highest-tier licence held. A broker regulated by both FCA (Tier 1) and IFSC (Offshore) is classified as Tier 1.
Primary regulator tier for each of the 64 forex brokers analysed.
Regulators with the most forex brokers in their jurisdiction, across all licence tiers. The FCA and ASIC dominate Tier 1; CySEC leads Tier 2.
Not all forex regulation is equal. A broker regulated by the UK Financial Conduct Authority (FCA) operates under capital adequacy requirements, client money segregation rules, and a compensation scheme covering up to £85,000 per eligible claimant. A broker regulated only by an offshore body such as the IFSC in Belize faces comparatively minimal obligations. The difference in trader protection between these two scenarios is substantial.
Our tier classification places regulators into four groups based on the stringency of their oversight framework, enforcement track record, and the protections they guarantee to retail clients. Tier 1 and Tier 2 represent meaningful protection; Tier 3 is partial; Offshore is caveat emptor.
Tier 1 regulators — the FCA, ASIC, CFTC/NFA, BaFin, MAS, and a small number of peers — set the benchmark for trader protection. Common requirements include segregation of client funds from firm capital, minimum net capital thresholds (often in the millions), mandatory reporting and audit obligations, and compensation schemes that provide a financial safety net if a firm fails.
Brokers with Tier 1 regulation generally score higher on our editorial rating system because their regulatory environment imposes accountability that correlates with better business practices. That said, regulation alone does not guarantee a broker will offer competitive spreads, quality execution, or responsive support — it is a floor, not a ceiling.
Some brokers in our dataset hold three, four, or more regulatory licences. Multi-licence structures typically arise for two reasons: genuine geographic expansion (a broker that wants to serve UK, Australian, and European clients separately through regulated local entities) or regulatory arbitrage (a broker that maintains an onshore entity for marketing credibility while processing client funds through a less-regulated offshore entity).
Traders should always verify which specific entity they are contracted with when opening an account. A broker that prominently displays its FCA licence but routes your account through a BVI subsidiary is providing less protection than the headline regulation implies. The entity on your account agreement — not the group’s top-tier licence — determines your actual regulatory protections.
Our data shows that a meaningful minority of forex brokers operate with only offshore licences or no disclosed regulation. Offshore jurisdictions — the British Virgin Islands, Seychelles, Belize, Vanuatu — typically offer registration rather than meaningful regulation: there is no independent audit requirement, no minimum capital adequacy standard, and no compensation scheme.
For most retail traders, the practical implication is straightforward: if a broker is offshore-only, there is limited legal recourse if funds are misappropriated, spreads are widened without notice, or the firm simply closes. Our editorial scoring reflects this risk — offshore-only brokers receive lower marks on the regulatory dimension of our rating framework.
Sortable table of all 64 forex brokers with their regulatory licences, tier classification, and editorial score. Use the tier filter buttons to focus on a specific segment.
| # | Broker | Primary Regulator | # Licences | Score |
|---|---|---|---|---|
| 1 | IG | FCATier 1 | 12 | 4.8 |
| 2 | IC Markets | ASICTier 1 | 3 | 4.7 |
| 3 | Pepperstone | FCATier 1 | 6 | 4.7 |
| 4 | Saxo Bank | FCATier 1 | 17 | 4.7 |
| 5 | Interactive Brokers | SECTier 1 | 18 | 4.6 |
| 6 | OANDA | NFATier 1 | 5 | 4.6 |
| 7 | CMC Markets | FCATier 1 | 5 | 4.5 |
| 8 | FP Markets | ASICTier 1 | 2 | 4.5 |
| 9 | XTB | FCATier 1 | 3 | 4.5 |
| 10 | AvaTrade | ASICTier 1 | 5 | 4.4 |
| 11 | Exness | FCATier 1 | 4 | 4.4 |
| 12 | ADS Securities | FSRATier 1 | 2 | 4.3 |
| 13 | ActivTrades | FCATier 1 | 3 | 4.3 |
| 14 | Admirals | FCATier 1 | 4 | 4.3 |
| 15 | Blueberry Markets | ASICTier 1 | 2 | 4.3 |
| 16 | Capital.com | FCATier 1 | 5 | 4.3 |
| 17 | Dukascopy | FINMATier 1 | 2 | 4.3 |
| 18 | EightCap | ASICTier 1 | 3 | 4.3 |
| 19 | FxPro | FCATier 1 | 3 | 4.3 |
| 20 | Tickmill | FCATier 1 | 3 | 4.3 |
| 21 | TradeStation | FINRATier 1 | 2 | 4.3 |
| 22 | XM | ASICTier 1 | 5 | 4.3 |
| 23 | tastytrade | CFTCTier 1 | 2 | 4.3 |
| 24 | ATFX | FCATier 1 | 3 | 4.2 |
| 25 | City Index | FCATier 1 | 3 | 4.2 |
| 26 | FXOpen | FCATier 1 | 3 | 4.2 |
| 27 | FXTM | FCATier 1 | 4 | 4.2 |
| 28 | Forex.com | NFATier 1 | 6 | 4.2 |
| 29 | Fusion Markets | ASICTier 1 | 2 | 4.2 |
| 30 | Global Prime | ASICTier 1 | 2 | 4.2 |
| 31 | Swissquote | FINMATier 1 | 3 | 4.2 |
| 32 | ThinkMarkets | FCATier 1 | 4 | 4.2 |
| 33 | Vantage | ASICTier 1 | 3 | 4.2 |
| 34 | eToro | FCATier 1 | 18 | 4.2 |
| 35 | Axi | ASICTier 1 | 3 | 4.1 |
| 36 | BlackBull Markets | FSCTier 1 | 2 | 4.1 |
| 37 | Deriv | MFSATier 2 | 4 | 4.1 |
| 38 | FXCM | FCATier 1 | 2 | 4.1 |
| 39 | HFM | FCATier 1 | 4 | 4.1 |
| 40 | Hantec Markets | FCATier 1 | 3 | 4.1 |
| 41 | Moneta Markets | ASICTier 1 | 3 | 4.1 |
| 42 | Skilling | FCATier 1 | 3 | 4.1 |
| 43 | Trade Nation | FCATier 1 | 2 | 4.1 |
| 44 | ACY Securities | ASICTier 1 | 2 | 4.0 |
| 45 | GO Markets | ASICTier 1 | 3 | 4.0 |
| 46 | Markets.com | FCATier 1 | 4 | 4.0 |
| 47 | NAGA | BaFinTier 1 | 3 | 4.0 |
| 48 | OctaFX | CySECTier 2 | 3 | 4.0 |
| 49 | Plus500 | FCATier 1 | 5 | 4.0 |
| 50 | RoboForex | FSCATier 2 | 3 | 4.0 |
| 51 | Spreadex | FCATier 1 | 1 | 4.0 |
| 52 | TMGM | ASICTier 1 | 2 | 4.0 |
| 53 | Windsor Brokers | CySECTier 2 | 2 | 4.0 |
| 54 | Alpari International | FSCTier 1 | 2 | 3.9 |
| 55 | BDSwiss | FSCTier 1 | 3 | 3.9 |
| 56 | FBS | CySECTier 2 | 3 | 3.9 |
| 57 | Libertex | CySECTier 2 | 1 | 3.9 |
| 58 | easyMarkets | ASICTier 1 | 5 | 3.9 |
| 59 | AMarkets | SVGFSAOffshore | 1 | 3.8 |
| 60 | Errante | CySECTier 2 | 2 | 3.8 |
| 61 | MIFX | BAPPEBTITier 2 | 2 | 3.8 |
| 62 | TPFx | BAPPEBTITier 2 | 2 | 3.7 |
| 63 | Dupoin | BAPPEBTITier 2 | 2 | 3.6 |
| 64 | InstaForex | CySECTier 2 | 2 | 3.6 |
Data source: BrokerDir proprietary database of 64 forex brokers. Regulatory data is sourced from each broker's official disclosure, verified against public regulator registers (FCA Register, ASIC Connect, CySEC register, etc.), and reviewed annually by the BrokerDir editorial team.
Primary tier classification: Each broker is assigned the highest tier of any licence it holds. A broker with both FCA (Tier 1) and CySEC (Tier 2) licences is classified as Tier 1. Unregulated brokers are those with no recognised regulatory disclosure in our database.
Tier definitions: Tier 1 = FCA (UK), ASIC (Australia), CFTC/NFA (USA), BaFin (Germany), MAS (Singapore), and equivalent top-tier bodies. Tier 2 = CySEC (Cyprus), DFSA (UAE), FSA (Japan), FSA (South Africa), and similar mid-tier regulators. Tier 3 = emerging market regulators with developing oversight frameworks. Offshore = BVI FSC, FSA Seychelles, IFSC Belize, VFSC Vanuatu, and equivalent low-oversight jurisdictions.
Licence count: The number of distinct regulatory licences associated with the broker in our database. This counts unique licences, not subsidiaries or branches under the same licence.
Editorial score: BrokerDir editorial score on a 1–5 scale based on regulation quality, fee transparency, platform quality, and customer support. See our for details.
Last updated: May 15, 2026. Data is refreshed automatically as new brokers and regulatory changes are recorded.
Across our dataset, there is a visible positive correlation between regulation tier and BrokerDir editorial score, but it is not deterministic. Some brokers with only Tier 2 regulation offer better overall value (competitive spreads, quality platforms, responsive support) than certain Tier 1 brokers with poor fee transparency. Conversely, some Tier 1 firms have high minimum deposits or limited product ranges that reduce their overall suitability.
Regulation tier is therefore best understood as a crucial risk filter, not the sole criterion for broker selection. Use it to narrow your options to credibly regulated brokers, then apply additional criteria — fees, platforms, supported instruments, and account types — to identify the right fit for your specific trading needs.
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