Non-EU brokers

Wondering which broker to choose after the changes introduced by ESMA? First and foremost, make sure you understand the exact scope of the changes introduced by ESMA (see) . Remember that these changes were introduced in your best interest and are intended to protect your capital. Choosing a broker outside the European Union means you consciously forgo certain protections. One of these is negative balance protection, which is required by ESMA. Brokers outside the EU do not always offer this protection, especially if they operate under an ECN model.

For the above reasons, it is worth considering whether you prefer to use higher leverage with greater risk, or use limited leverage and stronger investor protection.

Below is a list of Forex/ CFD brokers regulated outside the EU. These are primarily brokers from Australia and Switzerland.

Australian brokers

Australian brokers are a popular destination for European traders. ASIC (Australian Securities and Investments Commission), the local financial regulator, is a thriving institution that inspires trust among investors from around the world. It has quite stringent requirements for brokers, ensuring that ASIC-licensed brokers have been thoroughly vetted. A potential problem is the jurisdiction’s considerable distance from Poland, which can create certain difficulties in crisis situations.