IG CySEC Regulation 2024: Supervision, Investor Protections, and More

IG is a forex and CFD broker offering online trading services to traders and investors worldwide. The broker provides a diverse range of trading instruments, including Forex, indices, Cryptocurrencies, Shares, Commodities. It also supports multiple trading platforms and tools such as MT4, WebTrader, MobileTrader (MobileApp), ProRealTime.

Although IG is regulated by several authoritative bodies such as ASIC, FCA, JFSA, SFC (Hongkong), FSCA, MAS, FMA, GmbH, FINMA,  it is not regulated by CySEC (Australian Securities and Investments Commission). In this article, we will explore IG’ regulations, and its features, and provide a list of alternative brokers that are regulated by CySEC.

Does IG Operate Under CySEC?

No, IG does not operate under CySEC (Cyprus Securities and Exchange Commission) regulation. However, the broker is regulated by several other reputable financial authorities including ASIC, FCA, JFSA, SFC (Hongkong), FSCA, MAS, FMA, GmbH, FINMA. These regulatory bodies ensure compliance with various standards for financial stability, transparency, and investor protection, though they do not provide the specific protections offered by the CySEC in the EU.

What Other Regulations Does IG Have?

FCA:

IG is regulated by the Financial Conduct Authority (FCA) in the UK . The FCA, established in 2013, is responsible for regulating financial markets and firms in the United Kingdom.

The FCA requires IG to adhere to strict guidelines for financial conduct, including maintaining adequate capital, safeguarding client funds, and ensuring transparency in its operations. This includes keeping client money separate from company funds and providing regular financial reports. FCA regulation helps ensure that IG operates securely and fairly, offering a high level of protection and trust for clients in the UK and across Europe.

ASIC (Australian Securities and Investments Commission):

IG is regulated by ASIC. Founded in July 1998, the Australian Securities & Investments Commission (ASIC) is Australia’s national corporate regulator, overseeing corporations, markets, and financial services in accordance with the Australian Securities and Investments Commission Act 2001. Being based in Australia, ASIC regulation ensures that the broker complies with Australian laws on financial services, including responsible conduct, risk management, and financial reporting. Client money is kept in segregated accounts, and there is an emphasis on risk disclosure and trader protection.

FSA in Japan:

IG is regulated by the FSA in Japan. Established in 1997 the FSA Japan regulates and oversees the financial services industry including forex, overseeing banking, securities and exchange, and insurance sectors, and more. The FSA in Japan allows a maximum leverage of 1:400 for retail forex traders and investors. The FSA ensures that IG adheres to guidelines for maintaining adequate capital, protecting client assets, and ensuring transparent operations for clients in Japan and other regions. 

MAS

IG is regulated by the Monetary Authority of Singapore (MAS). MAS, founded in 1970, is the government body responsible for overseeing financial institutions in Singapore, ensuring financial stability and investor protection.

Under MAS regulation, IG must follow strict rules, including maintaining enough capital, keeping client funds separate from company assets, and providing regular financial reports. MAS supervises forex trading and limits the maximum leverage to 1:20 to manage risk. Although there is no specific protection scheme, MAS’s oversight ensures that IG operates safely and transparently. For more details, you can visit their website: http://www.mas.gov.sg.

FMA

IG is regulated by the Financial Markets Authority (FMA) of New Zealand. The FMA, established in 2011, is responsible for overseeing financial markets and ensuring fair, transparent, and efficient operations in New Zealand.

The FMA requires IG to follow strict guidelines, including maintaining sufficient capital, protecting client funds by keeping them separate from company assets and providing regular financial reporting. This regulation ensures that IG operates securely and fairly, offering a reliable and transparent trading environment for clients in New Zealand.

FINMA

IG is regulated by the Swiss Financial Market Supervisory Authority (FINMA). FINMA, established in 2009, is Switzerland’s independent financial regulatory body responsible for supervising banks, insurance companies, and financial intermediaries to ensure the stability of financial markets.

FINMA requires IG to comply with strict standards of financial security, including maintaining sufficient capital, protecting client funds by segregating them from company assets and ensuring transparent and accurate financial reporting. FINMA’s oversight ensures that IG operates with integrity and reliability, providing a secure trading environment for clients in Switzerland.

FSCA

IG is regulated by the Financial Services Board (FSB) of South Africa. The FSB, established in 1990, was the financial regulatory authority in South Africa responsible for overseeing non-banking financial institutions before being replaced by the Financial Sector Conduct Authority (FSCA) in 2018.

Under FSB regulations, IG was required to maintain strict standards, including holding adequate capital, protecting client funds by segregating them from company assets, and ensuring transparency through regular financial reporting. This regulation helped ensure that IG operated securely and reliably, offering a safe trading environment for clients in South Africa.

Best CySEC Regulated Forex Brokers: Alternatives to IG

IG is one of the leading forex and CFD brokers. The broker is not regulated by CySEC. It is regulated by other top-tier regulators including ASIC, FCA, JFSA, SFC (Hongkong), FSCA, MAS, FMA, GmbH, FINMA. There are several CySEC  regulated brokers that can serve as alternatives to IG. These brokers include: 

These brokers operate under CySEC regulation. According to CySEC rules, they offer leverage up to 30:1 and provide negative balance protection for retail traders. To learn more about CySEC-regulated forex brokers, you can read our content on the best CySEC-regulated forex brokers.

How Can I Verify If My Broker is CySEC-regulated or not?

You can find a CySEC-regulated broker’s profile on the CIF Regulated Entities List on the CySEC website. To verify if your broker, such as IG, is regulated by the CySEC follow these steps:

1. Get Broker Details

Start by finding the broker’s license number or name. This info is usually on the broker’s website. Having the right details is key for the next steps.

2. Visit the CySEC Website

Go to the CySEC Regulated Entities List. This is where you can verify if your broker is regulated.

3. Conduct the Search

Enter the license number or broker name into the search bar. This will bring up the broker’s profile on the CySEC website, showing important details about their regulatory status.

4. Check Authorization

Make sure the broker is authorized to offer specific services:

• Look for “9 – Financial contracts for differences” under Investment Services.
• Check for “Foreign exchange services connected to investment services” under Ancillary Services. This confirms they can legally offer forex and CFD trading.

5. Match Firm Details

Finally, ensure that the information on the CySEC website matches what you see on the broker’s site. Check the website, email, and other contact info. If anything doesn’t match, it could mean the broker isn’t authorized, and you should stay away to protect your money

Frequently Asked Questions ( FAQs)

What is IG?

Founded in 1974 as IG Index by British Financier Stuart Wheeler, IG is a well-known forex and CFD broker. It offers over 100 forex currency pairs, CFDs, commodities, stocks, indexes, gold, silver, oil, bitcoin, and other cryptocurrencies for your personal investment and trading options.

Is IG Considered Safe?

Yes, IG is considered safe. The broker is regulated by multiple top-tier regulatory authorities, including ASIC, FCA, JFSA, SFC (Hongkong), FSCA, MAS, FMA, GmbH, FINMA. It offers negative balance protection and holds client funds in segregated bank accounts. 

Does IG Offer Negative Balance Protection?

Yes, IG offers negative balance protection. All CySEC-regulated brokers must offer negative balance protection. Negative balance protection means that traders are protected from losing more money than they have in their trading accounts. If a trade results in losses that exceed the amount of funds in the account, negative balance protection ensures that the trader’s balance cannot go below zero. This prevents the trader from owing the broker any additional money.

Is IG regulated in Cyprus?

No, IG is not regulated in Australia. The broker is not regulated by CySEC, the Australian regulator. However, it accepts Australian clients under its global entity. IG is regulated by several other authorities, including ASIC, FCA, JFSA, SFC (Hongkong), FSCA, MAS, FMA, GmbH, FINMA.