Broker Regulation Guide

If you’re worried about the security of your funds then one of the most important factors that you need to consider when looking for a broker to sign-up with is that it must be regulated or registered with a trusted financial authority. This will give you a higher level of safety since these agencies are imposing very strict requirements before granting them licenses.

Most countries have their own authorized financial organizations that are responsible regulating brokerage firms that are offering online trading services. Though some countries may not have their own regulatory bodies, they recognize the licenses that of brokers that are registered with an agency of another country.

Cyprus: Cyprus Securities and Exchange Commission

Based in Nicosia, the CySEC is among the top financial regulatory authorities in the European Region and one of the first to provide licenses to brokerage firms that are offering trading services. It is their primary responsibility is to supervise the operation of such companies and execute administrative sanctions which are not complying with the regulatory guidelines.

Among the top brokers that are regulated by the CySEC is 365trading.

Below is the image of CySEC’s license:

United Kingdom: Financial Conduct Authority

Similar to the CySEC, the FCA which has a headquarters in the London is recognized as one of the top regulators in the industry. They have very strict requirements that must be met before granting licenses to brokers offering these types of financial instruments. Such stringency adds an improvement in the security of client funds.

Included in the list of FCA-registered brokers is 24option.

Australia: Australian Securities and Investments Commission

The ASIC is Australia’s authorized regulator of financial service providers and is one of the most trusted organizations in the Oceania region. With a head office in Sydney, they are responsible for regulating all brokerage firms that are operating in the country.

HighLow is one of the licensed brokers by the ASIC.

Here’s a sample of what ASIC’s license looks like:

The Netherlands: Authority for the Financial Markets

The AFM’s headquarters is located in Amsterdam and its function has similarities to the SEC in the USA. Recognized as the primary regulator in the Netherlands, they monitor all brokers that offer financial products to promote trader confidence in the markets.

Optie24 is among the brokers that are registered with the AFM.

The image below is the sample of their license:

Belize: International Financial Services Commission

The IFSC’s headquarters is in the City of Belize. It is the official financial regulator of the Central American nation where most brokers prefer to acquire an international license. Thus government agency is responsible for enforcing financial regulatory requirements to all brokerage firms in the country.

24option is currently one of the IFSC’s licensed brokers.

Below is an image of the license that they grant to compliant brokers:

France: French Prudential Supervisory Authority

The ACPR (Autorité de Contrôle Prudentiel et de Résolution in French) is a sovereign administrative organization that is in cooperation with the Bank of France. This government agency supervises the insurance and banking sectors to ensure that there is stability of the French financial system.

Germany: Federal Financial Supervisory Authority

The BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht in German) is the internationally recognized financial regulator in Germany and has offices in Bonn and Frankfurt. This independent federal institution supervises the granting of licenses to companies offering trading services in the country to make sure that transparency is implemented in the capital markets.

24option and 365trading are some of the brokers that are registered with the BaFin.

The image below is a sample of their license:

Italy: Italian Securities and Exchange Commission

The CONSOB (Commissione Nazionale per le Società e la Borsa in Italian) is government authority that is responsible for regulating brokerage firms that are catering to Italian markets. Its head office is in Rome and its objective is to ensure the security for the investing public by implementing integrity and transparency in the capital markets.

Currently, the top broker that is registered with the CONSOB is 24option.

For a safer and more secured trading experience, we highly advise that you trade with a broker that is registered or licensed with a financial regulator. You may refer to this organized table to see the relevant regulators for your country. This also includes the top brokers based on the recommendations of the majority of traders in this forum:

CySEC (Cyprus) 365trading VISIT
FCA (UK) 24option VISIT
ASIC (Australia) HighLow VISIT
AFM (The Netherlands) Optie24 VISIT
IFSC (Belize) 24option VISIT
BaFin (Germany) 24option
CONSOB (Italy) 24option VISIT