"Tier 1 regulator" is FXCN's analytical label, not an official grade
FXCN sorts the regulators it tracks into three tiers to weigh licences consistently. No body of regulators publishes a shared "Tier 1" list; other sites use their own groupings. Treat any tier label, including ours, as a starting point that still has to be tied to your contracting entity.
Tier 1 jurisdictions differ in the protections a retail client actually gets. Major-pair leverage is capped at about 30:1 in the UK, 50:1 in the US and 25 times for individuals in Japan; negative balance protection and compensation also vary.
- How FXCN tiers regulatorsCounts and examples
- Same tier, different protectionUK, EU, Australia, US, Japan
- Effect on broker scoresPoints per licence
- Checking a US firmNFA BASIC and the CFTC RED list
1. FXCN's three tiers
| Tier | Regulators tracked (11 Oct 2026) | Examples |
|---|---|---|
| Tier 1 | 37 | FCA (UK), ASIC (Australia), CFTC and NFA (US), MAS (Singapore), FSA (Japan), SFC (Hong Kong), FINMA (Switzerland), BaFin (Germany), CySEC (Cyprus) |
| Tier 2 | 33 | FSCA (South Africa), DFSA (Dubai), FSC (Mauritius), SCA (UAE), CNBV (Mexico) |
| Tier 3 (offshore) | 12 | SVG FSA, VFSC (Vanuatu), IFSC (Belize), FSC (BVI), CIMA (Cayman Islands) |
Each regulator's tier is shown on its regulator profile and is reviewed as rules and enforcement records change.
2. Same tier, different retail protections
| Jurisdiction | Major-pair leverage cap | Negative balance protection | Compensation |
|---|---|---|---|
| United Kingdom | 3.33% margin, about 30:1 (COBS 22.5.11R) | Yes; liability limited to funds in the account (COBS 22.5.17R) | FSCS up to £85,000 per person, per firm |
| EU (e.g. Cyprus) | 30:1 (ESMA 2018 measures, adopted nationally) | Yes, per account | Cyprus ICF: lower of 90% or €20,000 |
| Australia | 30:1 (ASIC order to 23 May 2027) | Yes, a condition of the order | CSLR excludes foreign exchange and derivatives trading |
| United States | 2% deposit, 50:1; 5% for other pairs (17 CFR 5.9) | not verified here | not verified here |
| Japan | Individuals: 4% margin, 25 times, since August 2011 | not verified here | not verified here |
Correction An earlier version of this page said Tier 1 meant mandatory negative balance protection, mandatory compensation and leverage of 30:1 or less. The table shows that is not true of every Tier 1 jurisdiction, so the statement has been removed.
3. How tiers feed FXCN broker scores
The regulatory-strength dimension carries 30% of the total score. It starts at 50, caps at 100, and moves per licence:
| Case | Points |
|---|---|
| Active Tier 1 licence | +30 |
| Tier 2 licence | +12 |
| Tier 3 offshore licence | +3 |
| Licence pending verification | Half of the tier value |
| Expired / suspended / revoked / suspected clone | Tier value minus 15 / 25 / 40 / 30 |
| Withdrawn | 0, not counted as current permission |
| No verified licence found | −50 |
Confirmed enforcement penalties are deducted after the cap, so a firm with many licences cannot absorb a fine inside a score that is already at 100.
4. Checking a US forex firm
- NFA BASIC shows whether a firm is registered and an NFA member, in what capacity, and its disciplinary history. NFA says all registered retail foreign exchange dealers must be NFA members.
- The CFTC RED list names foreign entities that appear to solicit US residents for products such as forex without required registration. A listing is not a finding of violation, and the CFTC advises checking registration even when a firm is not listed.
5. Turning the label into a check on your account
- Find the contracting entity.A group-level Tier 1 licence does not mean your account sits with that company.
- Confirm status and permissions.Check the register entry and compare with the licence check.
- Confirm it may serve your country.Many Tier 1 firms decline clients from some countries.
- Check each protection.Use the table in section 2 rather than the tier name.
6. Frequently asked questions
Another site's Tier 1 list differs. Which is right?
Neither is official. Prefer a list that publishes its method and update date and links each tier to specific rules.
Is an offshore licence worthless?
Not necessarily, but offshore regimes usually lack the leverage caps, negative balance protection and compensation in section 2, and they earn the fewest points in FXCN scoring. Check client-money terms and complaint routes directly.
Sources and open items
- FXCN regulator tiers and scoring algorithm v1 (read 11 October 2026).
- FCA COBS 22.5; FSCS.
- ESMA; CySEC ICF.
- ASIC 22-082MR; CSLR.
- 17 CFR 5.9; NFA: RFED registration; CFTC RED list release.
- Japan FSA, 13 February 2018.