The most Trusted and Safest Stock Brokers

Online stock brokers offer the ability to purchase company stocks and shares or related derivatives via the internet. Unfortunately, there are some online stock brokers out there that are operating a service that is not in line with what they promise. And even worse, others are designed purely to scam investors. The most reputable online stock brokers will be regulated by the relevant national authority (for example the FCA in the UK). In particular, stockbrokers should be regulated with a reputable authority such as the SEC, ASIC or FCA. And when you opt for a regulated broker, you are protecting yourself from legal control.

Why is it important for a broker to be regulated?

Regulation is the only thing keeping business in check, assuring the clients that their investment is safe and, above all, legal. The regulation also helps build trust between brokers and their clients. Thus they depend on trust, and regulation can help build that trust. Without the regulation it would be too easy to steal clients’ money: all it would take to become a broker is to create a company and the company's website. Before investing, traders should check the broker is authorized by one of the top regulators in the list below:

Monetary Authority of Singapore (MAS).

Financial Conduct Authority (FCA) in the UK.

Financial Markets Authority (FMA) in New Zealand.

Canadian Securities Administrators (CSA) in Canada.

Securities and Exchange Commission (SEC) in the USA.

Securities and Exchange Commission (SEC) in Hong Kong.

Dubai Financial Securities Authority (DFSA) in Dubai and UAE.

Australian Securities and Investments Commission (ASIC) in Australia.

Any European body, examples include Cyprus’ CySEC, BaFIN in Germany and MFSA in Malta. European Union laws mean that if a broker is regulated with one authority, they can typically operate across the whole of Europe. Therefore, if a broker is regulated by the CySEC, traders in Ireland, Greece, Netherlands and Norway etc will also be covered.

In most of Asia, brokers are not usually required to be regulated by their relevant authority, so traders in the Philippines, Sri Lanka, Pakistan, India, and many other Asian countries, should look out for regulation in any reputable authority as an indication of legitimacy.

Similarly, in Africa, many of the regulatory authorities do not require brokers to be regulated with them. As a result, traders in African nations such as South Africa, Nigeria, Ghana, Kenya and Zimbabwe should look out for regulation with any respected authority.

All good online stock brokers will be registered with some form of regulatory authority. They’ll provide you with a broker number (usually at the bottom of their homepage) which will allow you to verify this using the regulator’s register. You can also use the BrokerCheck from the Financial Industry Regulatory Authority (FINRA). This reveals whether there are any outstanding legal actions against the firm.

What are the safest stockbrokers?

When selecting a day trading broker, the most important things to consider are regulation, market offerings, platform features, account requirements, fees, and customer support. Pepperstone, Plus 500, and eToro are some of the highest-rated. CMC Markets offers an account with no minimum deposit requirement and is regulated in Australia, the UK, Germany and Canada. For forex day traders looking for a low minimum deposit account that supports clients in India and South Africa, try XM.

Here are the best stock brokers of 2021. The brokers on this list are all considered safe. You can be sure none of them is a scam. They are regulated by at least one top-tier regulator.

Interactive Brokers

Interactive Brokers, one of the biggest US-based discount brokers, was founded in 1978. The broker is regulated by several financial authorities globally, including top-tier ones like the UK's Financial Conduct Authority (FCA) and the US Securities and Exchange Commission (SEC).

Given that the broker has licenses from multiple top-tier regulators, Interactive Brokers is considered safe. The fact that it has a long track record and publicly disclosed financials while being listed on a stock exchange all point to IB being a safe service provider.

etoro

eToro serves UK clients through a unit regulated by the Financial Conduct Authority (FCA) and Australians through an Australian Securities and Investment Commission (ASIC) regulated entity. All other customers are served by a Cypriot unit that is regulated by the Cyprus Securities and Exchange Commission (CySEC). eToro is considered safe because its UK and Australian arms are regulated by top-tier financial authorities and it is a well-known fintech company.

Saxo Bank

Saxo Bank, a Danish investment bank founded in 1992, provides online trading and investment services. The company is regulated by several financial authorities globally, including the Danish Financial Services Agency (FSA) and the UK Financial Conduct Authority (FCA). Saxo Bank is considered safe because it has a long track record, a banking background and is regulated by top-tier financial authorities.

Swissquote

Swissquote is considered safe because Swissquote Bank Ltd has a banking license, it is listed on the Swiss stock exchange, discloses detailed financials regularly and has a long track record. There are two main entities (CH, LUX) that are regulated, respectively, by the Swiss Financial Market Supervisory Authority (FINMA) and Luxembourg's Commission de Surveillance du Secteur Financier (CSSF).

Swissquote Bank Ltd (or Swissquote CH) provides non-derivative trading services. For example, if you would like to trade stocks, you need to open a 'Trading' account, after which you will be onboarded to Swissqoute Bank Ltd. Swissquote Bank Europe SA (or Swissquote LUX) provides CFD and forex trading. So if you would like to trade currencies, be sure to open a 'Forex account'. After the application, you'll be at Swissquote Bank Europe SA.

Other Swissquote entities are regulated by: Financial Conduct Authority (FCA), Dubai Financial Services Authority (DFSA), Hong Kong Securities and Futures Commission (SFC), Monetary Authority of Singapore (MAS), and Malta Financial Services Authority (MFSA).