List of Best Forex Brokers by Regulation 2021

The first and the most crucial step you need to take to start forex trading is choosing a regulated broker. In most cases, any reliable broker that has licenses from regulators endeavors to provide high quality and good conditions for trading because traders can submit complaints to the regulatory authorities.

There are regulatory agencies all over the world that separate the trustworthy from the fraudulent. The most important forex market regulators cover the jurisdictions where most of the world's forex brokerage businesses are located. In reality, it is not possible to have forex brokers in every country.

In this article, we will show you three of the most important regulatory bodies and the best forex brokers regulated by them to help your trading and investment decisions.

Best FCA Regulated Brokers

The Financial Conduct Authority (FCA) in the UK is deemed to be one of the most reputable regulatory organizations in the world for regulating Forex brokers and other financial entities. It is the agency responsible for screening and issuing Forex brokers licenses to qualified entities. In addition to that, they routinely monitor and perform due diligence to ensure that all members are meeting their statutory requirements.

The FCA's licensing fees and operating capital requirements are much higher than other tier one regulators and it has a long-standing reputation for guaranteeing trader security. Brokers regulated by the FCA must have segregated bank accounts for client funds, a minimum of 1 million GBP in operating capital and instantaneous withdrawal processing. The FCA also provides a compensation scheme of up to 50,000 GBP to protect traders against broker-related matters.

All FCA regulated brokers must strive for transparency and avoid deceptive practices that run counter to the best interest of their clients. Any violations found by the FCA can result in adverse action taken against the offending party. Here are the 10 best FCA regulated forex brokers in 2021.

Best ASIC Regulated Brokers

Australia is a growing center for foreign-exchange trading activity. The Australian Securities and Investments Commission (ASIC) is the regulatory agency providing oversight of Forex brokers doing business in Australia. The ASIC was introduced in 1998, but the initial concept of a regulatory organization took root in 1989 under the Australian Securities Commission Act.

To become licensed by ASIC to do business as a forex broker, a company must meet high standards. For one, there's a capital requirement of at least one million dollars. In addition to this, all customer funds must be held in segregated accounts at top-tier banks. The ASIC also has an investor compensation scheme in place to ensure that client funds are protected in the event of broker insolvency.

ASIC entertains consumer complaints through the various Federal agencies and also encourages companies to resolve issues at the broker level. In case the investor is unable to obtain a favorable response, he/she can also approach the Financial Ombudsman service or contact a higher authority such as the Court for resolution of the matter. Here are the 10 best FCA regulated forex brokers in 2021.

Best CySEC Regulated Brokers

Cyprus continues to be the top destinations for forex brokers in the large financial markets of the Middle East. It serves as a gateway into their gateway into Europe as it makes it easy for brokers to gain their forex regulatory license. Cyprus is a regional forex center and one of the top worldwide destinations for forex.

The CySEC has wide powers to control the activities of its members. Thanks to this, CySEC regulated Forex brokers are seen as synonym to reliability. The first and foremost non-abuse of your money. CySEC brokers are not allowed to access it and so your funds cannot be used for any other purpose apart from trading on your behalf.

CySEC brokers need to join the Investor Compensation Fund Scheme before getting a license. This facilitates investors to file for compensation if the broker becomes bankrupt. CySEC brokers can face sanctions or penalties if they operate unfairly. Here are the 10 best CySEC regulated forex brokers in 2021.

Conclusion

As noted, there is no centralized exchange that handles all or even most spot forex transactions. Therefore, each region has its own regulatory agency that is charged with handling oversight activities, and maintaining efficient and fair order flow processing. The major benefits of regulatory agencies are that they assist to standardize the way forex traders are treated, ensure fair markets, and safety of their invested fund.

However, even with proper regulations, deep-rooted forex brokers occasionally engage in fraudulent activities to scam traders. One of the best ways to do that is to make sure you are only doing business with one of the licensed and regulated forex brokers within your jurisdiction.