Regulation guide

What is a financial regulator?

A financial regulator is a public or authorized body that supervises financial firms. It may set licensing, capital, client-money, conduct, complaint, and reporting requirements.

Tier 1 · Strong oversight

Top-tier authorities actively supervise licensed firms and may provide formal complaint or compensation mechanisms. Always verify the exact licensed legal entity.

Tier 2 · Established oversight

Established authorities impose meaningful rules, though investor compensation and enforcement resources vary by jurisdiction.

Tier 3 · Limited oversight

Supervision and investor recourse are more limited. Confirm the license and assess the broker carefully.

Offshore or unverified

Some offshore registrations are company registrations rather than licenses to provide regulated financial services. Investor protection may be minimal or absent.

Multiple licenses

A broker may operate through several legal entities under different regulators. Your protection depends on the entity named in your client agreement, not only the licenses advertised by the group.