What does investor protection mean for a forex account?

It is the set of things a licence obliges the broker to do for a retail client: keep client money separate from its own, stop an account going below zero, and stand behind the deposit with a compensation scheme if the firm fails. Which of those apply depends on the entity that holds the account, not on the broker's brand.

How do I verify a broker's licence?

Find the legal entity named in the account agreement, search for that entity on the regulator's own register, and check that the licence number and the website match what the broker publishes. A brand name on a register is not enough; the entity is what is licensed.

Investor protection, regulator by regulator

A licence is a set of obligations. This page lists what each authority on the database requires of the brokers it licenses: whether client money is segregated, whether a retail account can go below zero, what leverage is allowed, what scheme stands behind the deposit and where a complaint goes.

How to verify a broker

Find the entity. The account agreement names a legal company. That company, not the brand, is what holds a licence.
Search the register. Every authority below links to its own register. Search for the entity there and check the licence number matches the one the broker publishes.
Match the website. Many registers record the approved domain. A website that is not the one on the register may be a clone using a real firm's name.
Read what the licence gives you. The protections below apply to clients of that entity in that jurisdiction. An offshore entity of the same brand usually gives none of them.

Tier one regulators

Segregated client money, negative balance protection and a compensation scheme or its equivalent.

Australian Securities and Investments CommissionAAA

ASIC · Australia · 40 brokers on the database

Client protections: Client money segregation and negative balance protection are required for retail CFD accounts.
Retail leverage cap: 1:30 on major currency pairs
Compensation: No statutory scheme; the Australian Financial Complaints Authority can award compensation
Complaints: Australian Financial Complaints Authority

Search the ASIC register

Cyprus Securities and Exchange CommissionAA

CySEC · Cyprus · 40 brokers on the database

Client protections: Segregated client funds and negative balance protection under ESMA rules.
Retail leverage cap: 1:30 on major currency pairs
Compensation: Investor Compensation Fund, up to €20,000
Complaints: Financial Ombudsman of the Republic of Cyprus

Search the CySEC register

Financial Conduct AuthorityAAA

FCA · United Kingdom · 39 brokers on the database

Client protections: Client money must be held in segregated trust accounts. Retail clients have negative balance protection.
Retail leverage cap: 1:30 on major currency pairs
Compensation: Financial Services Compensation Scheme, up to £85,000 per person per firm
Complaints: Financial Ombudsman Service

Search the FCA register

Dubai Financial Services AuthorityAA

DFSA (DIFC) · United Arab Emirates · 14 brokers on the database

Scope: The regulator of the Dubai International Financial Centre free zone, applying rules modelled on the UK's.

Search the DFSA (DIFC) register

Monetary Authority of SingaporeAAA

MAS · Singapore · 10 brokers on the database

Retail leverage cap: 1:20 for retail clients on most instruments

Search the MAS register

Commodity Futures Trading Commission and National Futures AssociationAAA

CFTC/NFA · United States · 7 brokers on the database

Client protections: Strict capital rules; no negative balance protection is mandated.
Retail leverage cap: 1:50 on major currency pairs
Complaints: NFA arbitration

Search the CFTC/NFA register

Financial Services AgencyAAA

FSA (Japan) · Japan · 7 brokers on the database

Retail leverage cap: 1:25 on currency pairs

Canadian Investment Regulatory OrganizationAA

CIRO · Canada · 6 brokers on the database

Compensation: Canadian Investor Protection Fund, up to C$1,000,000

Financial Markets AuthorityAA

FMA (New Zealand) · New Zealand · 6 brokers on the database

Scope: Licenses derivatives issuers offering CFDs and margin forex to New Zealand retail clients.

Search the FMA (New Zealand) register

Bundesanstalt für FinanzdienstleistungsaufsichtAAA

BaFin · Germany · 5 brokers on the database

Retail leverage cap: 1:30 on major currency pairs
Compensation: EdW compensation scheme, up to €20,000

Swiss Financial Market Supervisory AuthorityAAA

FINMA · Switzerland · 4 brokers on the database

Compensation: Depositor protection up to CHF 100,000 for bank clients

Securities and Futures CommissionAAA

SFC (Hong Kong) · Hong Kong · 4 brokers on the database

Scope: Licenses leveraged foreign exchange trading (Type 3) and dealing in securities and futures in Hong Kong.

Search the SFC (Hong Kong) register

Securities and Exchange Commission and FINRAAAA

SEC/FINRA · United States · 2 brokers on the database

Compensation: SIPC protection for securities accounts, up to $500,000

Search the SEC/FINRA register

Financial Services Regulatory AuthorityAA

FSRA (ADGM) · United Arab Emirates · 2 brokers on the database

Scope: The regulator of the Abu Dhabi Global Market free zone.

Financial Industry Regulatory AuthorityAAA

FINRA · United States · 2 brokers on the database

Scope: Self-regulatory organisation for US securities broker-dealers.

Search the FINRA register

Securities and Exchange CommissionAAA

SEC · United States · 2 brokers on the database

Scope: The United States securities regulator.

Central Bank of IrelandAA

Central Bank of Ireland · Ireland · 1 broker on the database

Retail leverage cap: 1:30 on major currency pairs
Compensation: Investor Compensation Scheme, up to €20,000

Search the Central Bank of Ireland register

Commissione Nazionale per le Società e la BorsaAA

CONSOB · Italy · 1 broker on the database

Retail leverage cap: 1:30 on major currency pairs

Autorité des Marchés FinanciersAA

AMF · France · 1 broker on the database

Retail leverage cap: 1:30 on major currency pairs

Komisja Nadzoru FinansowegoAA

KNF · Poland · 1 broker on the database

Retail leverage cap: 1:30 for retail, 1:100 for experienced retail clients

Comissão do Mercado de Valores MobiliáriosAA

CMVM · Portugal · 1 broker on the database

Scope: Portugal's securities regulator, applying MiFID II.

Malta Financial Services AuthorityAA

MFSA · Malta · 1 broker on the database

Compensation: Investor Compensation Scheme, up to €20,000

FinanstilsynetAA

FSA (Denmark) · Denmark · 1 broker on the database

Scope: Denmark's financial supervisor, applying MiFID II. Saxo Bank's home regulator.

Banca d'ItaliaAA

Bank of Italy · Italy · 1 broker on the database

Scope: Prudential supervisor for Italian banks and investment firms.

Commodity Futures Trading CommissionAAA

CFTC · United States · 1 broker on the database

Scope: Regulates US derivatives markets, including retail forex dealers.

National Futures AssociationAAA

NFA · United States · 1 broker on the database

Scope: Self-regulatory organisation for the US derivatives industry.

Search the NFA register

European Central BankAA

ECB · European Union · 1 broker on the database

Scope: Prudential supervisor of the euro area's significant banks. A bank that also offers brokerage is supervised here for its balance sheet, alongside its national securities regulator for conduct.

Tier two regulators

Real supervision, with some retail protections missing.

Financial Services CommissionB

FSC (Mauritius) · Mauritius · 31 brokers on the database

Client protections: Client money segregation is required; there is no compensation scheme.

Search the FSC (Mauritius) register

Financial Sector Conduct AuthorityA

FSCA (South Africa) · South Africa · 29 brokers on the database

Client protections: Conduct supervision, but no statutory compensation scheme for CFD losses.
Complaints: FAIS Ombud

Search the FSCA (South Africa) register

Capital Markets AuthorityB

CMA (Kenya) · Kenya · 10 brokers on the database

Retail leverage cap: 1:400 for retail non-dealing brokers

Capital Market Authority (as recorded on broker material)B

CMA (UAE) · United Arab Emirates · 9 brokers on the database

Scope: Appears on some brokers' regulatory statements for the UAE. Onshore securities licensing in the UAE is issued by the SCA; check any licence quoted under this name on the SCA register.

Securities and Commodities AuthorityA

SCA (UAE) · United Arab Emirates · 3 brokers on the database

Scope: The onshore UAE securities regulator, outside the DIFC and ADGM free zones.

Israel Securities AuthorityA

ISA (Israel) · Israel · 3 brokers on the database

Scope: Licenses trading arenas for Israeli retail clients under a strict 2015 regime.

Jordan Securities CommissionB

JSC (Jordan) · Jordan · 3 brokers on the database

Scope: Licenses financial brokers in Jordan.

FinantsinspektsioonA

EFSA (Estonia) · Estonia · 2 brokers on the database

Scope: Estonia's financial supervisor, applying MiFID II.

Financial Supervision CommissionA

FSC (Bulgaria) · Bulgaria · 1 broker on the database

Scope: Bulgaria's securities regulator, applying MiFID II.

Latvijas BankaA

Bank of Latvia · Latvia · 1 broker on the database

Scope: Latvia's central bank and, since 2023, its financial supervisor, applying MiFID II.

Financial Futures Association of JapanA

FFAJ (Japan) · Japan · 1 broker on the database

Scope: Self-regulatory body for Japanese forex margin trading operators, alongside FSA registration.

Securities and Exchange Regulator of CambodiaB

SERC (Cambodia) · Cambodia · 1 broker on the database

Scope: Licenses derivatives brokers for Cambodian clients.

Tier three regulators

A registration that permits the business without doing much to protect the customer.

Financial Services AuthorityC

FSA (Seychelles) · Seychelles · 30 brokers on the database

Client protections: No statutory investor protection.

Search the FSA (Seychelles) register

Financial Services CommissionC

FSC (BVI) · British Virgin Islands · 8 brokers on the database

Scope: Licenses investment businesses in the British Virgin Islands; an offshore regime with no retail compensation scheme.

Financial Services CommissionC

FSC (Belize) · Belize · 8 brokers on the database

Scope: Successor to the IFSC, licensing international financial services from Belize.

Securities Commission of The BahamasC

SCB (Bahamas) · Bahamas · 8 brokers on the database

Scope: Licenses securities and forex businesses in the Bahamas.

Vanuatu Financial Services CommissionC

VFSC (Vanuatu) · Vanuatu · 7 brokers on the database

Scope: Issues dealer licences with low capital requirements; a common home for brokers serving Asia.

Cayman Islands Monetary AuthorityC

CIMA (Cayman Islands) · Cayman Islands · 6 brokers on the database

Scope: Registers securities investment businesses in the Cayman Islands.

Mwali International Services AuthorityC

MISA (Comoros) · Comoros · 4 brokers on the database

Scope: A registration authority on the island of Mohéli. It grants brokerage licences with minimal supervision and is treated as a red flag by most reviewers.

Bermuda Monetary AuthorityC

BMA (Bermuda) · Bermuda · 1 broker on the database