Is Pocket Option Regulated in Singapore? Is it Legit? - TU Expert review
Pocket Option is a regulated Forex broker supervised by financial authorities in. The broker adheres to the standards established by its regulators, ensuring a secure and transparent trading environment. Pocket Option countries of regulation:
| Regulator | Full name | Country |
|---|---|---|
| MISA (Mwali) | Mwali International Services Authority | The Comoros |
Is Pocket Option regulated in Singapore? Broker’s license
Security (Protection for Investors)
Pocket Option is licensed by MISA under number T2022086. It ensures that the broker works under international laws and rules of financial markets.
👍 Advantages
- MISA doesn’t set restrictions on leverage that the broker offers to retail clients
👎 Disadvantages
- PO TRADE BROKER doesn’t provide its services in the USA, the UK, the European Economic Area, Japan, and several other countries
Is Pocket Option regulated in Singapore? Broker’s license
Pocket Option regulation review
| Regulator | Country | Regulation level | Investor Protection Fund |
|---|---|---|---|
|
MISA (Mwali)
|
The Comoros | Tier-3 | No specific fund |
Understanding Forex Regulation Levels
When choosing a Forex broker, their regulatory framework plays a pivotal role in ensuring trust and security. Below is an overview of the different regulatory tiers:
-
Tier-1 Regulators:
These authorities are globally recognized for their strict oversight and high compliance standards. They prioritize trader safety, financial transparency, and overall market stability. Notable examples include the FCA in the United Kingdom and ASIC in Australia. -
Tier-2 Regulators:
While not as stringent as Tier-1, these regulators enforce solid compliance protocols that provide traders with a fair degree of security and reliability. -
Tier-3 Regulators:
Often limited to simple registration processes, Tier-3 regulators operate in jurisdictions with minimal oversight. Brokers under Tier-3 regulation face fewer compliance demands, offering traders less protection.
Short summary about the broker Pocket Option
PO TRADE BROKER caters to both Forex and binary options traders, offering a wide range of trading instruments, a copy trading service, and passive income opportunities.
Clients can trade CFDs on currencies, cryptocurrencies, stocks, indices, and commodities with spreads starting from 1.2 pips and no additional commissions per lot. Pocket Option's unique "My Safe" service offers up to 10% annual interest on unused account balances.
While the platform excels in serving active traders, its demo accounts and referral program also offer value to beginners. However, the lack of cent accounts and ECN options could be a drawback for certain professional traders.
| 💰 Account currency: | USD |
| 🚀 Minimum deposit: | $5 |
| ⚖️ Leverage: | 1:1000 for MT4/MT5; 1:1 for options on the in-house platform. |
| 💱 Spread: | 1.2 pips for MT4/5 |
| 🔧 Instruments: | Binary options and CFDs on currency pairs, cryptos, indices, stocks, and commodities |
| 💹 Margin Call / Stop Out: | 30%/50% |
Pros and cons of Pocket Option
👍 Advantages of trading with Pocket Option:
•MetaTrader provides for trading binary options and CFDs;
•A demo mode is available for all account types;
•Active, social, and algorithmic trading is available on MT4 and MT5 accounts;
•Spreads are from 1.2 pips for Forex and no fees per lot;
•Referral program for retail clients with rewards of up to 50%-80% of the referee’s income;
•“My Safe” service that provides for crediting 10% per annum on the account balance not involved in trading;
•Cash back and promo codes for binary option traders;
•50% deposit bonus.
👎 Disadvantages of Pocket Option:
•Real-time communication with operators is available upon funding the account.
Why is it important for a broker to have the license in Singapore?
A financial license is the key document for any broker. It confirms that the company complies with the requirements of the financial regulator and observes the law. It is important for traders to choose a broker registered their jurisdiction for the following reasons:
-
Any claim is filed at the place of the broker’s registration. Accordingly, in case any dispute arises, it will be easier for the trader to file a claim.
-
A license issued in Singapore guarantees that the broker operates in compliance with the laws of this country and reports to the local regulatory authorities.
-
Traders can claim compensation under the government programs of deposit guarantees in case the broker experiences financial problems.
It is also possible to choose a broker that is not regulated in Singapore. In that case, however, the company must have a license from a reliable regulator, for example of an EU country, the UK, USA, Australia, etc.
Brokers that are similar to Pocket Option
In addition to Pocket Option, also other brokers from this jurisdiction have the license of Singapore. Pocket Option has many competitors, and before you start working with this broker, you need to compare it to other companies. TU analysts have prepared a comparison of brokers that operate in the Singapore market and have a license of this or another reliable jurisdiction.
Comparison of Pocket Option with other Brokers
| Pocket Option | Eightcap | XM Group | RoboForex | Bybit | IC Markets | |
|---|---|---|---|---|---|---|
Trading platform |
Pocket Option, MT5, MT4 |
MT4, MT5, TradingView |
MT4, MT5, MobileTrading, XM App |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
MetaTrader5 |
MT4, cTrader, MT5, TradingView |
Min deposit |
$5 |
$100 |
$5 |
$10 |
No |
$200 |
Leverage |
From 1:1 |
From 1:30 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
No |
Accrual of % on the balance |
No |
No |
No |
10.00%% |
No |
No |
Spread |
From 1.2 point |
From 0 points |
From 0.8 points |
From 0 points |
From 0 points |
From 0 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
Market Execution |
Market Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution |
No deposit bonus |
No |
No |
No |
No |
No |
No |
Cent accounts |
No |
No |
No |
Yes |
No |
No |
Is it safe to trade with Pocket Option in Singapore?
Pocket Option is not regulated in Singapore. The company does not hold a financial license, which could raise certain security-related questions. Nevertheless, the company has a good reputation and has proven its reliability to traders. Pocket Option offers attractive conditions; many traders in Singapore have chosen to work with this broker. However, be aware of the risks when working with such companies.
FAQ
How do I check a broker’s license?
Brokers should provide their license on their official website. It is also recommended to check it on the official website of the financial regulatory authority.
Does a broker need to have an official representative office in Singapore?
Yes. According to the rules of Singapore, brokers must have an office in Singapore. This is a mandatory condition for obtaining the license.
Can the license issued by Singapore be considered reliable protection against fraud?
Yes. The rules of the financial regulator of Singapore are very strict, which makes obtaining a license in this jurisdiction extremely difficult for scammers.
What kind of information should a broker provide for traders?
On their official websites, brokers must provide the name of the managing company, r egistration certificate, legal address and internal regulatory documents.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
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.