Regulator tiers are a shorthand for how much protection a licence gives a retail trader. This site uses four levels: tier 1 for the strictest regimes, tier 2 for solid regimes with fewer safeguards, tier 3 for offshore licences, and “registration only” for jurisdictions that do not supervise forex at all.
Which regulators are in each tier?
| Tier | Examples | Typical protections |
|---|---|---|
| Tier 1 | FCA (UK), ASIC (Australia), CFTC/NFA (US), JFSA (Japan), MAS (Singapore), FINMA (Switzerland), BaFin (Germany), CIRO (Canada) | Leverage caps, client money rules, active enforcement, often a compensation scheme |
| Tier 2 | CySEC and other EU regulators, DFSA and ADGM (UAE), FMA (New Zealand), FSCA (South Africa), CMA (Kenya) | Real licensing and supervision; protections vary |
| Tier 3 | Seychelles, Mauritius, Vanuatu, Bahamas, Belize, BVI | Light requirements, high leverage, no compensation scheme |
| Registration only | St Vincent and the Grenadines | Company registration without forex supervision |
Who decides the tiers?
We do. There is no official international ranking of regulators, so the grouping is our editorial judgement, published so you can disagree with it. The full list and the points each tier earns are on the methodology page.
Does a tier 1 licence make a broker safe?
It makes loss through broker misconduct or failure less likely and gives you more ways to seek redress. It does nothing to reduce the risk of losing money through trading itself, which is how most retail accounts lose.