Regulation & Trust Rating

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Jemma Grist
Jemma is a writer, editor and fact-checker focused on retail trading and investing. Jemma brings a unique perspective to the forex, stock, and cryptocurrency markets and works across several investment websites as a researcher and broker analyst.
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James Barra
James is an investment writer with a background in financial services. He has worked as a management consultant, where he delivered large-scale operational transformational programmes at some of Europe's biggest banks. James authors, edits and fact-checks content for a series of investing websites.
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William Berg
William contributes to several investment websites, leveraging his experience as a consultant for IPOs in the Nordic market and background providing localization for forex trading software. William has worked as a writer and fact-checker for a long row of financial publications.

Choosing a trustworthy broker is critical to safeguard your funds. However, with the risk of scams and unfair trading practices, it can be difficult to know who you can put your confidence in.

That’s why we’ve developed a straightforward way to score brokers, which:

  1. Informs our review process, and;
  2. Helps traders understand what to look for in a trustworthy broker.

We call this our Regulation & Trust Rating.

What We Consider

Our Regulation & Trust Rating takes into account several considerations:

  • Regulatory status: Is the broker licensed by Green Tier regulators?
  • History: Does it have a clean record with no regulatory breaches?
  • Transparency: Is the broker open about its trading conditions?
  • Internal opinion: How much trust does our team have in the broker?


Our findings in each of these areas contribute to an overall score of up to 5 – with the most trusted brokers scoring between 4 and 5.

Regulation and Trust rating methodology at

Interactive Brokers, for example, earns a high trust score of 4.5 due to its regulation by reputable bodies like the US CFTC and UK FCA, plus its over 40 years of industry experience.

In contrast, Woxa receives a very low trust score of 1.5 due to its regulation by the high-risk Mauritius SFC and its limited track record, established only in 2021.


The most important factor we take into account is a broker’s regulatory status.

This is because reputable regulators ensure brokers operate a fair and transparent trading environment, helping to safeguard your investments.

When we assign our ratings, we are interested in:

  • How many licenses a broker holds, and critically;
  • Whether they are from trusted regulators.

To determine whether a regulator is high-risk or low-risk, we’ve developed 4 classifications:

  1. Green Tier: Very low risk. The best investor protection.
  2. Yellow Tier: Low risk. Strong investor protection.
  3. Orange Tier: High risk. Limited investor protection.
  4. Red Tier: Very high risk. Little to no investor protection.

Regulator tiers for regulation and trust rating

Green Tier Regulatorsgreen flag

Green Tier regulators are the gold standard when it comes to regulatory oversight, and we apply the highest scores to brokers that hold one or more licenses from Green Tier regulators.

A Green Tier regulator ensures adherence to strict industry safety standards, instilling confidence even if specific jurisdictional protections, like investor compensation in case of broker bankruptcy, are unavailable to you.

Yellow Tier Regulatorsyellow flag

Yellow Tier regulators should provide strong investor protection, but it may not be as robust as those provided by Green Tier regulators. Regulatory scrutiny may be less rigorous for example.

That said, we still consider brokers authorized by Yellow Tier regulators trustworthy.

Orange Tier Regulatorsorange flag

We urge caution if a broker only holds an Orange Tier license. These regulators are less reputed and may provide limited investor protection or recourse channels in the event your broker faces financial difficulties or you have a dispute.

Red Tier Regulatorsred flag

We consider these regulators very high risk – with little to no investor protection available. Membership requirements are often lax and regulators may not actively monitor and enforce safety measures, such as restrictions on misleading promotions.

Brokers that are only authorized by Red Tier regulators, with no additional oversight from more reputable agencies, may be operating scams.

Bottom Line

Choosing a well-regulated broker is one of the best ways to safeguard your trading funds. That said, there have been instances where even brokers licensed by trusted regulators have acted against clients and faced financial difficulties.

As a result, our Regulation & Trust Rating cannot guarantee the safety of your funds.

Only risk what you can afford to lose.