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

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

IG is highly regarded for its regulation by multiple authoritative bodies, including the ASIC, FCA, JFSA, SFC (Hongkong), FSCA, MAS, FMA, GmbH, FINMA. This multi-regulatory oversight underscores its commitment to maintaining high safety and transparency standards.

In this article, we will explore IG’s MAS regulation, its importance, the investor protection scheme, and negative balance protection. Additionally, we will provide information on other brokers regulated by the MAS. 

Does IG Operate Under MAS Regulation?

Yes, IG operates under MAS regulation. The broker’s MAS license number is Unreleased. This regulation ensures that the broker adheres to the high standards set by the MAS, providing a layer of security and trust for its clients. Being MAS-regulated means that IG must follow strict guidelines to protect client funds, ensure transparency, and maintain the integrity of its operations.

What is MAS?

MAS regulation refers to the rules and oversight provided by the Monetary Authority of Singapore (MAS), the central bank and financial regulatory authority in Singapore. Established in 1971, MAS is responsible for overseeing financial institutions, including banks, insurance companies, and forex brokers, ensuring the stability and integrity of Singapore’s financial system.

MAS enforces strict regulatory standards to protect investors and maintain a fair market. Financial service providers must hold a Capital Markets Services (CMS) license issued by MAS, ensuring compliance with rigorous capital requirements, risk management protocols, and transparency in operations. MAS also mandates that firms maintain segregated client accounts to safeguard client funds and promotes a strong focus on consumer protection.

With a global reputation for stringent anti-money laundering (AML) and counter-terrorism financing (CTF) measures, MAS plays a vital role in upholding Singapore’s status as a leading international financial hub. It offers negative balance protection to retail clients and limits leverage in retail forex trading to mitigate risk. MAS also adheres to international regulatory frameworks while tailoring its regulations to foster innovation and competitiveness in the financial sector.

Why Do We Trust MAS Regulation?

MAS is trusted due to its stringent regulatory framework, ensuring safety, transparency, and accountability for financial institutions, including forex brokers. Here’s why:

1. Safety of Client Funds:

MAS ensures that a broker holding a Capital Markets Services (CMS) license must safeguard client funds by depositing them into trust accounts. These trust accounts are maintained with reputable institutions, such as banks, merchant banks, or finance companies in Singapore. Additionally, for client assets, MAS permits deposits into trust accounts maintained with specialized institutions, including:

• Depository agents for securities held in the Central Depository (CDP) system.
• Approved trustees for collective investment schemes.
• Companies holding a CMS license to provide custodial services for securities.

2. Reporting Requirements for Forex Brokers:

MAS imposes strict reporting obligations on regulated forex brokers, ensuring transparency and compliance. These include:

• Transaction Reports: Brokers must submit detailed reports of all transactions, ensuring full visibility of their trading activities.
• Audit Reports: Regular audits are mandatory, providing an independent assessment of the broker’s financial health and adherence to regulatory standards.
• Anti-Money Laundering (AML) Reports: Brokers must also comply with MAS’s robust AML policies by filing reports on suspicious activities, ensuring that all transactions are legitimate and that illicit activities are promptly addressed.

How Can I Verify If My Broker is MAS Regulated?

To verify if your broker, such as IG, is regulated by the MAS, follow these steps:

Step 1: Obtain the Broker’s License Number or Name

The first step in verifying whether a broker is MAS-regulated is to gather the necessary details from the broker’s official website. Look for the broker’s licensed or reference number, which is typically listed in the footer, legal section, or “About Us” page. If the license number is not available, the broker’s name can also be used for verification. Having the correct license number or name ensures a more accurate search when checking the broker’s regulatory status.

Step 2: Search the MAS Financial Institutions Directory

Once you have the broker’s license number or name, visit the official MAS Financial Institutions Directory at https://eservices.mas.gov.sg/fid. Enter the license number or the broker’s name into the search bar and hit enter. This directory contains all MAS-regulated entities, and your search results should show the broker’s profile if they are indeed regulated. This step is critical for confirming that the broker you are considering operates legally under MAS oversight.

Step 3: Check License Type and Status

After locating the broker in the MAS directory, carefully review their profile. Look specifically for the license type and status to ensure that the broker is authorized to offer the services you need. If you are trading forex, verify that the broker is licensed to provide “Spot Foreign Exchange Contracts for Leveraged Forex Trading” under “Dealing in Capital Markets Products.” This step confirms that the broker has the necessary permissions to legally offer forex trading and other related financial products.

Step 4: Verify Broker Contact Details

Another essential step is to ensure that the contact details listed on the MAS website match those provided by the broker on their own site. Pay close attention to details such as the broker’s website URL, email address, and phone number. If the contact details differ, it could indicate that you are dealing with an unauthorized broker or a clone firm that is pretending to be MAS-regulated. Verifying these details helps protect you from potential scams or unauthorized firms.

Step 5: Stay Away from Unlisted Brokers

If you cannot find the broker in the MAS directory, this is a red flag. Brokers that are not listed are likely unauthorized, and trading with them can put your funds at serious risk. Unauthorized brokers often operate without regulatory oversight, meaning they may not adhere to client fund protection rules, leaving your investments exposed. Always stay away from brokers that are not listed in the MAS directory to ensure your money remains safe.

MAS-Regulated Forex Brokers: Who Else Is on the List?

IG is one of the leading MAS-regulated forex brokers. However, there are other MAS-regulated forex and CFD brokers that can serve as alternatives to IG. These alternatives include:

These brokers operate under MAS regulation. According to MAS rules, they offer leverage up to 20:1 and provide investor protection and negative balance protection for retail traders. To learn more about MAS-regulated forex brokers, you can read our content on the best MAS-regulated forex brokers.

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. 

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.

Frequently Asked Questions

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 Under MAS Regulation?

Yes, IG is considered safe under MAS regulations. Besides MAS the broker is also regulated by several regulatory authorities including ASIC, FCA, JFSA, SFC (Hongkong), FSCA, MAS, FMA, GmbH, FINMA. These regulations ensure strict compliance with industry standards and provide protection for client funds.

What is the Maximum leverage of IG Under MAS Regulation?

The maximum leverage offered by IG under MAS regulation is 30:1 for retail traders. However, leverage may vary based on the tradable assets.

Here are the IG leverage limits under MAS regulation:

• 30:1 for major currency pairs (e.g., GBP/USD, EUR/USD,)
• 20:1 for non-major currency pairs, gold, and major indices (e.g, S&P 500, Nasdaq 100 (US)
• 10:1 for commodities other than gold and non-major equity indices
• 5:1 for individual equities and other reference values

What is the minimum Deposit of IG under MAS Regulation?

The minimum deposit for a card payment is $50, and there is no minimum deposit for a bank transfer.

Does IG Offer Negative Balance Protection under MAS regulation?

Yes, IG offers Negative Balance Protection under MAS regulation. This means that traders cannot lose more money than they have deposited in their trading accounts. If a trade results in losses that exceed the account balance, this protection ensures that the account balance does not go below zero, so the trader does not owe the broker any extra funds. This safeguard is important for retail investor safety and is in line with MAS’s regulations to protect traders in Singapore.

Does IG Offer an Investor Protection Scheme under MAS regulation?

No, IG does not have an investor protection scheme under the regulation of the Monetary Authority of Singapore (MAS). This is primarily because MAS itself does not provide an investor protection scheme.While there is no dedicated scheme, MAS requires brokers like IG to keep client funds in trust accounts with reputable banks or financial institutions, ensuring that client money is safeguarded. Additionally, brokers must submit Transaction Reports, Audit Reports, and Anti-Money Laundering (AML) Reports to maintain transparency and accountability