In the fast-evolving world of social trading, choosing the right broker can make or break your trading journey. With thousands of platforms promising easy profits, how do you know which ones are safe, regulated, and trustworthy?
This guide is your 2025 roadmap to understanding broker licenses—why they matter, how to verify them, and how to choose a reliable broker that protects your funds and supports your trading goals.
What Is a Broker License?
A broker license is an official authorization granted by a financial regulatory authority that allows a company to legally offer trading services. Licensed brokers must follow strict rules designed to protect traders, such as:
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Keeping client funds in segregated accounts
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Providing transparent pricing and fair execution
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Undergoing regular audits and compliance checks
Without a license, a broker operates in the shadows—leaving you vulnerable to scams, fund mismanagement, and zero legal protection.
Broker License Authorities and Tiers (2025 Guide)
Choosing a broker licensed by a reputable authority is crucial for your safety as a trader. Below is a comprehensive list of major financial regulators around the world, categorized by Tiers
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Tier 1 : Highly trusted regulators with strict compliance, investor protection, and enforcement powers. Brokers licensed here are considered the safest.
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Tier 2: Moderately trusted regulators. They offer decent oversight but may lack the enforcement strength of Tier 1.
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Tier 3: Offshore or lightly regulated jurisdictions. Often used for tax or operational flexibility, but offer minimal protection to traders.
| Country/Region | Regulator Name | Abbreviation | Tier |
| United States | Commodity Futures Trading Commission | CFTC | 1 |
| United States | National Futures Association | NFA | 1 |
| United States | Securities and Exchange Commission | SEC | 1 |
| United Kingdom | Financial Conduct Authority | FCA | 1 |
| United Kingdom | Prudential Regulation Authority | FOR | 1 |
| Australia | Australian Securities and Investments Commission | ASIC | 1 |
| Canada | Investment Industry Regulatory Organization of Canada | I.I.R.O.C. | 1 |
| Canada | Office of the Superintendent of Financial Institutions | OSFI | 1 |
| Japan | Financial Services Agency | FSA | 1 |
| Singapore | Monetary Authority of Singapore | BUT | 1 |
| Hong Kong | Securities and Futures Commission | SFC | 1 |
| Switzerland | Swiss Financial Market Supervisory Authority | FINMA | 1 |
| European Union | European Securities and Markets Authority | ESMA | 1 |
| European Union | European Banking Authority | EBA | 1 |
| New Zealand | Financial Markets Authority | FMA | 2 |
| South Korea | Financial Services Commission | FSC | 2 |
| Malaysia | Securities Commission Malaysia | SC | 2 |
| India | Securities and Exchange Board of India | TO YOURSELF | 2 |
| Brazil | Securities and Exchange Commission | CVM | 2 |
| South Africa | Financial Sector Conduct Authority | FSCA | 2 |
| France | Financial Markets Authority | AMF | 2 |
| Germany | Federal Financial Supervisory Authority | BaFin | 2 |
| Italy | National Commission for Companies and the Stock Exchange | CONSOB | 2 |
| Spain | National Securities Market Commission | CNMV | 2 |
| Thailand | Securities and Exchange Commission of Thailand | SEC Thailand | 2 |
| UAE (Dubai) | Dubai Financial Services Authority | DFSA | 2 |
| Abu Dhabi | Abu Dhabi Global Market | ADGM | 2 |
| Cyprus | Cyprus Securities and Exchange Commission | CySEC | 3 |
| Mauritius | Financial Services Commission | FSC Mauritius | 3 |
| Belize | International Financial Services Commission | IFSC | 3 |
| Vanuatu | Vanuatu Financial Services Commission | VFSC | 3 |
| British Virgin Islands | BVI Financial Services Commission | BVI FSC | 3 |
| Bermuda | Bermuda Monetary Authority | BMA | 3 |
| Cayman Islands | Cayman Islands Monetary Authority | UP | 3 |
| Russia | Central Bank of the Russian Federation | CBR | 3 |
| Saudi Arabia | Saudi Central Bank (formerly SAMA) | SAME | 3 |
| China | China Securities Regulatory Commission | CSRC | 3 |
| China | China Banking and Insurance Regulatory Commission | CBIRC | 3 |
Notes:
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Some regulators (like CySEC or FSC Mauritius) are improving their standards but are still considered Tier 3 due to past leniency or limited enforcement.
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China and Russia have strong domestic oversight but are often excluded from Tier 1 due to lack of transparency or capital controls.
Tips: Always prioritize brokers regulated by Tier 1 authorities. If a broker is only licensed in a Tier 3 jurisdiction, proceed with extreme caution—or better yet, avoid them altogether.
How to Verify a Broker’s License
Don’t just take a broker’s word for it—verify their license yourself. Here’s how:
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Find the license number on the broker’s website (usually in the footer or “About Us” section).
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Visit the regulator’s official website (e.g., fca.org.uk for the UK).
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Search the license number or company name in the regulator’s database.
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Confirm the license is active and matches the broker’s details.
Why Licensing Matters for Social Traders
Social trading platforms allow you to copy the trades of experienced investors. But if the broker behind the platform isn’t licensed, you’re exposed to serious risks:
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Fake performance stats to lure you in
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Unfair trade execution that benefits the broker, not you
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Withdrawal issues or frozen funds
A licensed broker ensures:
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Transparent copy trading
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Secure fund handling
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Legal recourse in case of disputes
How to Choose a Reliable Broker in 2025
Here’s a checklist to help you pick the right broker for social trading:
- Regulation: Licensed by a Tier-1 or Tier-2 authority
- Reputation: Positive reviews and a clean track record
- Fees: Transparent spreads and commissions
- Customer Support: Responsive and multilingual
- Education: Offers tutorials, webinars, and demo accounts
Still unsure which broker to choose?
Don’t worry—we’ve done the homework for you. Our Signal List for Licensed Brokers features carefully vetted brokers, evaluated across multiple trust and performance metrics. Let real data and real trader experiences guide your next move
FOLLOWME’s Signal List for Licensed Brokers
To further support transparency and help social traders make informed decisions, FOLLOWME maintains a curated Signal List for Licensed Brokers. This list includes brokers that:
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Hold valid licenses from top-tier regulatory authorities
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Have a clean reputation with minimal user complaints
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Maintain active, verified trading accounts within the FOLLOWME community
Only signals connected to these brokers are eligible for listing, and they must meet performance standards such as a minimum of $2,000 in equity, positive cumulative income, and at least 13 weeks of trading history. If a broker loses its license or receives regulatory penalties, its signals are flagged with risk warnings and lose monetization privileges. See how FOLLOWME evaluates and curates our Signal List for Licensed Brokers so you can copytrade with confidence
List of Licensed Brokers on FOLLOWME (2025)
Here is the current list of licensed brokers supported by FOLLOWME, sorted alphabetically. This list is continuously updated to reflect the most trusted and compliant brokers in the community:
Note: This list is updated regularly to reflect the most current broker status. For the latest version, visit the Signal List for Licensed Brokers on FOLLOWME.
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