The legal entity matters because your contract is with one specific company, not with a brand. That company’s regulator sets your leverage limit, decides whether you have negative balance protection and determines whether a compensation scheme covers you.
Why do brokers have so many entities?
Brokers set up separate companies because each regulator only allows locally authorised firms to serve its residents. A group might use a UK company for UK clients, a Cyprus company for the rest of Europe, an Australian company for Australia and an offshore company for everyone else.
What changes between entities?
| Feature | Tier 1 entity (UK, EU, Australia) | Offshore entity |
|---|---|---|
| Leverage on major pairs | Capped at 30:1 for retail clients | Set by the broker, often 500:1 or more |
| Negative balance protection | Required by law | Broker policy, if offered |
| Compensation scheme | Usually yes, with a limit | Usually none |
| Bonuses | Banned for retail clients | Often offered |
How do I find out which entity I would get?
The entity is named in the account opening form and the client agreement. On this site, choose your country at the top of any page: every broker table then shows the entity that would serve you, its regulator and the Trust Score for that entity.
Can I choose a different entity?
Sometimes. Some brokers let clients outside strict jurisdictions pick an offshore entity for higher leverage. Doing so trades protection for leverage, and you should treat it as a deliberate decision rather than a formality.