Unregulated Forex Brokers List for 2024
Best Unregulated Forex Broker - WOORI BANK
TOP unregulated Forex brokers in 2024:
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Qtrade-de - Best for trading CFD in Germany (BaFin regulation, low margin requirements)
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Tradiso -
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Pocket Option - Best for Social Trading (top rated service by customers)
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TeleTrade - Best for learning trading basics (a lot of educational and analytical materials)
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FreshForex - Best for occasional trading on-the-go (through proprietory Telegram bot)
Even though working with regulated Forex brokers may be safer and more advantageous, various unregulated brokers on the market may be worth considering. We will look into the best-unregulated forex brokers, their Forex fees, supported assets, leverage, and supported countries, without leaving out their pros and cons.
Warning:
There is a high level of risk involved when trading leveraged products such as Forex/CFDs. Between 65% and 82% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
List of unregulated Forex brokers
Expert Opinion
Always approach unregulated Forex brokers with caution, as working with such companies involves significant risks. In case of issues, you will have to rely solely on the integrity of such a company. While unregulated brokers may sometimes offer more favorable trading conditions, it's essential to assess risks and opportunities together. If you still decide to work with an unregulated broker, be sure to check how many years it has been operating in the market, what its reputation is, and what feedback exists from former and current clients.
Useful Forex Facts & Insights
Top 3 Brokers With the Tightest Spreads
The spread size is crucial for active trading styles and bot trading. STP/ECN brokers typically offer the lowest spreads for EUR/USD, with an average spread of around 0.1 pips. Additionally, these brokers usually charge a small commission per standard lot, ranging from $1.5 to $3.5. Traders Union prepared a list of the top 3 brokers in your country with the lowest spread for the EUR/USD and GBP/USD currency pairs.
| Broker | Avg. EUR/USD Spread | Avg. GBP/USD Spread |
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Best regulated Forex brokers 2024
eToro
The eToro broker was founded in 2007. The company promotes itself as a social trading platform working with traders from over 140 countries. The broker has several divisions operating under different jurisdictions and licensed by different regulators. For example, eToro (Europe) is licensed by the Cypriot regulator CySEC (109/10) and eToro (UK) is licensed by the British regulator FCA (583263). The broker also has a representative office in Australia and the USA. eToro Profile Details
| 🏛 Regulation: | CySEC, FCA, ASIC |
| 🚀 Minimum deposit: | $50, $100 (for UK clients) |
| ⚖️ leverage: | 1:1-1:30 |
| 💻 Trading platform: | No |
| 💰 Account currency: | USD |
| 💱 Spread: | No |
| 🔧 Instruments: | Currencies, assets of stock and commodity markets, cryptocurrencies |
| 💵 Replenishment / Withdrawal: | Bank transfer, Neteller, Skrill, Webmoney, GiroPay |
OANDA
The name OANDA is an acronym for “Olsen & Associates” or “Olsen AND Associates”. It is registered in the United States and provides its clients with a wide range of financial services in most countries of the world. The company was founded in 1996 and is currently regulated in four jurisdictions. The main regulator of the broker is the UK Financial Conduct Authority (FCA). Oanda Canada is licensed by IIROC. The company has several significant awards to its credit, including a victory in the category "Best Forex Trading Technologies" from the UK Forex Awards, "Best Trading Platform" from FX Week, as well as "Best Customer Service" from the US Foreign Exchange Report.
| 🏛 Regulation: | FSC (BVI), ASIC, IIROC, FCA, CFTC, NFA |
| 🚀 Minimum deposit: | No |
| ⚖️ leverage: | Up to 1:200 |
| 💻 Trading platform: | No |
| 💰 Account currency: | USD, EUR, HKD, SGD |
| 💱 Spread: | No |
| 🔧 Instruments: | FX, Indices, Bullion, Commodities, Crypto |
| 💵 Replenishment / Withdrawal: | Visa, Mastercard, Skrill, Neteller and various Alternate Payment Methods |
IG Markets
IG Markets has been providing brokerage services for retail traders since 2014. It was established in 1974 in London to work with professional traders. It is a part of the IG Group with representative offices in 17 countries. IG Markets stocks are traded on the London Stock Exchange as a part of the FTSE 250 index. The broker is regulated by FCA (Financial Conduct Authority | the UK), CySec (Cyprus Securities and Exchange Commission), ASIC (Australian Securities and Investments Commission), BaFin (the Federal Financial Supervisory Authority | Germany), FINMA (Swiss Financial Market Supervisory Authority), and NFA (National Futures Association). The IG Group global representative office is supervised by BMA (the Bermuda Monetary Authority). The broker provides services of trading Forex and different CFDs through MetaTrader 4 and its in-house platforms for retail and professional traders.
| 🏛 Regulation: | FCA, BaFin, ASIC, MAS, CySec, FINMA, BMA, CFTC, NFA |
| 🚀 Minimum deposit: | $1 |
| ⚖️ leverage: | Up to 1:200 |
| 💻 Trading platform: | No |
| 💰 Account currency: | USD |
| 💱 Spread: | No |
| 🔧 Instruments: | Forex; CFDs on indices, commodities, and stocks; Cryptocurrencies, options, interest rates, sectors, bonds, knock-outs, ETFs, and Futures on indices and commodities |
| 💵 Replenishment / Withdrawal: | Visa, Mastercard, and bank transfers |
Trading.com
Trading.com is a UK broker whose full name is Trading Point. Previously, it was called XMUK, but in 2019 it was rebranded and the company began to operate under its new title: Trading.com. The company offers to trade six asset classes such as currency pairs, metals, as well as CFDs on stocks, stock indices, commodity futures, and energy resources. More than 1,250 assets are available in total. The main office is located in London, the broker is regulated by the FCA (Financial Conduct Authority), and its registration number 705428.
| 🏛 Regulation: | FCA, CFTC, NFA |
| 🚀 Minimum deposit: | from 5 USD |
| ⚖️ leverage: | from 1:1 up to 1:30 depending on the instrument |
| 💻 Trading platform: | Pocket Option, MT5, MT4 |
| 💰 Account currency: | EUR, USD, GBP, CHF, AUD, PLN, HUF |
| 💱 Spread: | 1.2 point |
| 🔧 Instruments: | Currency pairs (57), CFD on shares (1200+), commodity group (8), indices (14), metals (2), energy resources (5) |
| 💵 Replenishment / Withdrawal: | Credit/debit cards, wire transfer, Skrill |
FOREX.com
Forex.com is a company owned by GAIN Capital Holdings, Inc. (NYSE: GCAP) and has earned a reputation as a reliable broker in the trading industry for its transparent work and high quality of services. The company cooperates with clients in 140 countries. The broker is registered in the Cayman Islands and supervised by CIMA (Certified Institute for Management Accountants). The license number is 25033. The parent company of the Forex.com broker is registered in England and Wales under the number 1761813 at the UK Companies House. It is licensed by one of the most reputable regulators in the world, FCA (No. 113942).
| 🏛 Regulation: | CIMA, FCA, FSA (Japan), NFA, IIROC, ASIC, CFTC |
| 🚀 Minimum deposit: | $1000 |
| ⚖️ leverage: | Up to 1:400 |
| 💻 Trading platform: | No |
| 💰 Account currency: | USD, EUR, GBP |
| 💱 Spread: | No |
| 🔧 Instruments: | Forex, cryptocurrencies, indices, commodities, stocks |
| 💵 Replenishment / Withdrawal: | Bank transfer, payment cards |
What is an unregulated Forex broker?
An unregulated broker is not a member of a regulatory organization and therefore is not subject to its rules and regulations. Unregulated forex brokers belong to the fourth level when ranked in terms of regulations. They are preceded by Tier 1, Tier 2, and Tier 3 brokers, which are regulated by financial regulatory authorities.
Tier 1: These are the most trusted and highly regulated Forex brokers. They are typically licensed and regulated by a well-respected financial regulatory authority, such as the Financial Conduct Authority (FCA) in the UK or the Commodity Futures Trading Commission (CFTC) in the US. These brokers must adhere to strict rules and regulations to ensure the safety and security of their clients' funds.
Best FCA regulated Forex brokersTier 2: These brokers are regulated but may not be subject to the same strict rules and regulations as Tier 1 brokers. They may have a slightly lower level of trust among clients and regulatory authorities but are still considered reliable and trustworthy. Example of such a regulator is CySec (Cyprus).
Best CySec regulated Forex brokersTier 3: These brokers are typically offshore brokers and may not be regulated by a well-respected financial regulator. They do not adhere to the same strict rules and regulations as Tier 1 and 2 brokers, so clients should be cautious when choosing one of these brokers. Clients are likely to experience higher risk levels due to these brokers' unregulated nature.
Unregulated brokers: Unregulated brokers are the riskiest of all types of Forex brokers. These brokers are not subject to any regulation, so there is no guarantee that your funds will be safe in their hands. They may offer higher leverage and bonuses than other broker types, but these come with greater risk. Clients should do extensive research before choosing an unregulated broker, as there is a high chance of losing their funds.
Pros of Unregulated Forex Brokers
Unregulated forex brokers can offer several advantages to traders, such as:
High Leverage: Unregulated brokers may offer significantly higher leverage than regulated ones. This allows traders to enter bigger positions, creating the potential for higher profits and entails more risk.
Low Deposit Requirements: Some unregulated brokers require lower minimum deposits than those regulated. This is great news for new and experienced traders looking to start trading with only a small amount of money.
Access to Different Markets: Unregulated forex brokers often give their clients access to other markets besides Forex, such as CFD commodities or stocks. This offers diversification possibilities that many traders find attractive.
Bonuses: Many unregulated brokers offer their customers attractive bonuses, rewards, and other incentives. This can be useful for those looking to make the most of their trading capital.
Cons of Unregulated Forex Brokers
Here are some potential risks associated with using an unregulated forex broker:
Lack of transparency: Unregulated brokers are not required to disclose information about their operations or financial stability, making it difficult for traders to assess the risks of using their services.
No protection for traders: Unregulated brokers are not subject to the same standards as regulated brokers, which means that traders may not have access to the same level of protection in the event of fraud or disputes.
Risk of fraud: Unregulated brokers may engage in fraudulent or deceptive practices, such as altering trade results or failing to execute trades to profit at the expense of their clients.
Difficulty withdrawing funds: Unregulated brokers may make it difficult or impossible for traders to withdraw their funds, especially if the broker is experiencing financial difficulties or is engaging in fraudulent activities.
Not actually controlled by governments: Regulated brokers must adhere to strict standards set by the government that regulates them. Unregulated brokers, on the other hand, are not subject to such oversight and may be less reliable as a result.
Regulated Forex brokers vs. unregulated brokers - what should I choose?
Regulated brokers are subject to oversight and monitoring by their respective regulators, which ensures that they follow fair trading practices. This means that the broker must abide by certain rules, such as not allowing traders to trade on margin or providing negative balance protection. Regulated brokers also provide additional benefits, such as insurance against losses due to fraud or insolvency of the broker itself. Furthermore, regulated brokers usually have better customer service and a safer trading environment for clients compared with unregulated ones.
On the other hand, unregulated brokers are not subject to any regulatory oversight. This means that they may be more likely to engage in unethical or risky practices, such as offering higher leverage than allowed by the regulator of their jurisdiction. However, in some cases, unregulated brokers may be a good choice for experienced traders looking for special bonuses or conditions that may not be available with regulated brokers.
Ultimately, it is important to remember that when choosing a forex broker, safety should always come first. Therefore, TU recommends that all traders select a regulated broker unless they are experienced in dealing with unregulated companies and comfortable taking the additional risk involved.
Are unregulated Forex brokers a scam?
While not all unregulated brokers are fraudulent, the lack of oversight unfortunately leaves traders more vulnerable.
If you are considering an unregulated broker, it is imperative that you thoroughly research the company. Check for a long track record of satisfied customers, transparent communicating, and ease of withdrawing funds. Beware of any broker that seems evasive or makes claims that seem exaggerated - common red flags of shady operations.
You'll also want to investigate why a broker chooses to remain unregulated. Some may opt out due to the expenses of maintaining licenses and other regulatory requirements. But be wary of any broker that claims regulation is "unnecessary". Legitimate Forex brokers understand the importance of oversight.
While regulated brokers are still profit-seeking businesses, the regulation process vets brokers for ethical practices that better protect traders. This includes segregating accounts, maintaining minimum capital levels, submitting to audits, and more. Dealing through regulated brokers means you have recourse if issues arise.
If you still choose to trade through an unregulated broker, take steps to minimize your risks. Avoid depositing more than you can afford to lose. Use strong passwords and two-factor authentication. Research how to spot scams and fraud. And carefully document all of your account activities. Stay vigilant!
While the potential returns of an unregulated broker may seem enticing, you must be comfortable with the increased uncertainties and risks.
How Do You Check if a Broker is Regulated?
Here are some steps you can take to ensure that your broker is regulated:
Step 1: Identify the Broker
First, you need to get the full legal name of the broker or firm you are interested in. Make sure you have the correct spelling.
Step 2: Determine the Relevant Regulatory Authority
Different countries have different regulatory bodies. For example, in the United States, the Financial Industry Regulatory Authority (FINRA) regulates brokers. In the UK, it's the Financial Conduct Authority (FCA). In Australia, it's the Australian Securities and Investments Commission (ASIC).
Step 3: Visit the Regulatory Authority's Website
Most regulatory bodies have an online portal or a search functionality on their website that allows you to check the status of a broker.
For the US: Go to the FINRA's BrokerCheck website (https://brokercheck.finra.org/)
For the UK: Check the Financial Services Register on the FCA's website (https://register.fca.org.uk/)
For Australia: Use the ASIC Connect's Professional Registers (https://connectonline.asic.gov.au/)
Step 4: Use the Search Function
Enter the broker's name into the search bar. In most cases, this should provide information about their regulatory status.
Step 5: Review the Results
Review the information carefully. Regulated brokers should have a registration number and detailed information about their activities. Pay attention to any disciplinary actions, complaints, or violations associated with the broker.
Step 6: Verify the Information
Some fraudulent brokers may claim to be regulated and even provide a fake registration number. Always verify the information directly from the regulatory authority's website.
What Makes a Bad Broker?
Understanding how to identify potentially bad or scam brokers is important to protect your investments. Here are some red flags to watch out for:
No Regulation: This is one of the biggest red flags. Regulation ensures that brokers adhere to a strict set of rules and standards to protect their clients. If a broker isn't registered with a reputable regulatory body, they may be a scam broker.
Unusual Deposit and Withdrawal Rules: Brokers should make the process of depositing and withdrawing funds straightforward. If a broker makes it difficult to withdraw your money, requires excessively high minimum deposits, or charges exorbitant fees for withdrawals, it could be a sign that they're not legitimate.
Too-Good-to-Be-True Offers: Be wary of promises that sound too good to be true, like guaranteed profits or high returns with no risk. Trading and investing always involve some level of risk, and any broker who claims otherwise should be viewed with suspicion.
High-Pressure Sales Tactics: If a broker or their representatives are pressuring you to invest more money, make specific trades, or make decisions quickly without time to consider, that's a red flag.
Lack of Transparency: A legitimate broker will be transparent about their trading terms, costs, fees, and commissions. If it's difficult to find this information or if the broker is evasive when asked, be cautious.
Cold Calling or Unsolicited Offers: If you receive an unsolicited phone call or email from someone claiming to be a broker and offering investment opportunities, be skeptical. Many scam brokers use such tactics to lure in victims.
Unclear Business Practices: If a broker is evasive about their trading platform, business practices, or the instruments they offer, this is a red flag. Legitimate brokers should have clear, easily understood policies and practices.
Negative Online Reviews: While not always foolproof, online reviews can provide valuable insights. If a broker has a high number of negative reviews, particularly about things like difficulty withdrawing funds, poor customer service, or misleading practices, take heed.
Absence of Detailed Documentation: Legitimate brokers will provide detailed documentation, such as customer agreements and disclosures about their fees, services, and the risks associated with trading. If such documentation is missing or inadequate, that's a warning sign.
Not Following the KYC Process: Reputable brokers should follow the Know Your Customer (KYC) process, which involves verifying your identity and assessing your suitability for certain types of investments. If a broker does not follow this process, be wary.
FAQs
Which markets are unregulated?
Unregulated markets can vary, but some examples include over-the-counter (OTC) cryptocurrency markets, certain commodities markets, and private equity markets. These markets lack the oversight and regulations of traditional stock exchanges.
What is an unregulated forex broker?
An unregulated forex broker is a brokerage firm that operates without being subject to strict regulatory oversight from financial authorities. They often offer more flexible trading conditions but come with higher risks.
Can I use an unregulated broker?
While you can technically use an unregulated broker, it's essential to understand the risks involved. They may not provide the same level of investor protection and transparency as regulated brokers.
Is an unregulated market efficient?
The efficiency of an unregulated market can vary. While some unregulated markets may offer greater flexibility, they can also be more susceptible to manipulation and fraud due to the lack of oversight.
Methodology for compiling our ratings of Forex brokers
Traders Union applies a rigorous methodology to evaluate brokers using over 100 quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.
Key aspects of the assessment include:
Regulation and safety. Brokers are evaluated based on the level/reputation of licenses and regulations they operate under.
User reviews. Client reviews and feedback are analyzed to determine customer satisfaction levels. Reviews are fact-checked and verified.
Trading instruments. Brokers are evaluated on the range of assets offered, as well as the breadth and depth of available markets.
Fees and commissions. All trading fees and commissions are analyzed comprehensively to determine overall costs for clients.
Trading platforms. Brokers are assessed based on the variety, quality, and features of platforms offered to clients.
Other factors like brand popularity, client support, and educational resources are also evaluated.
Find out more about the unique broker assessment methodology developed by Traders Union specialists.
Glossary for novice traders
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1
Broker
A broker is a legal entity or individual that performs as an intermediary when making trades in the financial markets. Private investors cannot trade without a broker, since only brokers can execute trades on the exchanges.
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2
Trading
Trading involves the act of buying and selling financial assets like stocks, currencies, or commodities with the intention of profiting from market price fluctuations. Traders employ various strategies, analysis techniques, and risk management practices to make informed decisions and optimize their chances of success in the financial markets.
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3
Leverage
Forex leverage is a tool enabling traders to control larger positions with a relatively small amount of capital, amplifying potential profits and losses based on the chosen leverage ratio.
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4
CFD
CFD is a contract between an investor/trader and seller that demonstrates that the trader will need to pay the price difference between the current value of the asset and its value at the time of contract to the seller.
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5
Cryptocurrency
Cryptocurrency is a type of digital or virtual currency that relies on cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies operate on decentralized networks, typically based on blockchain technology.
Team that worked on the article
Oleg Tkachenko is an economic analyst and risk manager having more than 14 years of experience in working with systemically important banks, investment companies, and analytical platforms. He has been a Traders Union analyst since 2018. His primary specialties are analysis and prediction of price tendencies in the Forex, stock, commodity, and cryptocurrency markets, as well as the development of trading strategies and individual risk management systems. He also analyzes nonstandard investing markets and studies trading psychology.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).