Is Interactive Brokers Regulated by the Mas as of 2024

Interactive Brokers 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 Stocks, options, futures, currencies, bonds, and funds. It also supports multiple trading platforms and tools such as WebTrader, FIX API, MobileTrader (MobileApp), TWS.

Interactive Brokers is regulated by several authoritative bodies such as SEC, CFTC, FCA, FSCS, FINRA, FCM,  IIROC, MAS, FSA. However, Interactive Brokers is not regulated by the MAS ( Monetary Authority of Singapore). In this article, we will explore Interactive Brokers’ regulations, and its features, and provide a list of alternative brokers that are regulated by MAS.

Does Interactive Brokers Operate Under MAS?

No, Interactive Brokers does not operate under MAS (Monetary Authority of Singapore) regulation. However, the broker is regulated by several other reputable financial authorities including SEC, CFTC, FCA, FSCS, FINRA, FCM,  IIROC, MAS, FSA. 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 MAS in Singapore.

What Other Regulations Does Interactive Brokers Have?

SCB (Securities Commission of The Bahamas):

Interactive Brokers is also regulated by SCB. Established in 1995, SCB  regulates and oversees the financial services industry. The SCB ensures that Interactive Brokers follows guidelines for maintaining adequate capital, protecting client assets, and ensuring transparent operations for clients from various regions, particularly those outside Europe and Australia.

CFTC:

Interactive Brokers is regulated by the Commodity Futures Trading Commission (CFTC) for its operations involving U.S. clients. The CFTC, established in 1974, is an independent U.S. government agency that regulates the futures and options markets.

The CFTC requires Interactive Brokers to adhere to strict standards for financial conduct, including maintaining sufficient capital, segregating client funds from company assets, and ensuring transparency in trading practices. The CFTC’s oversight helps protect U.S. investors by ensuring that brokers like Interactive Brokers operate with integrity and comply with regulatory requirements.

MAS:

Interactive Brokers 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, Interactive Brokers 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 Interactive Brokers operates safely and transparently. For more details, you can visit their website: https://www.mas.gov.sg.

FINRA

Interactive Brokers is also regulated by the Financial Industry Regulatory Authority (FINRA) for its operations involving U.S. clients. FINRA, established in 2007, is a non-governmental organization that regulates member brokerage firms and their registered representatives.

FINRA requires Interactive Brokers to adhere to strict standards for financial stability, transparency, and client protection. This includes maintaining adequate capital reserves, keeping client funds separate from company assets, and ensuring accurate and timely reporting. FINRA’s oversight helps ensure that Interactive Brokers operates fairly and transparently, protecting U.S. investors and maintaining trust in the financial markets.

Best MAS Regulated Forex Brokers: Alternatives to Interactive Brokers

Interactive Brokers is one of the leading forex and CFD brokers. The broker is not regulated by MAS. It is regulated by other top-tier regulators including SEC, CFTC, FCA, FSCS, FINRA, FCM,  IIROC, MAS, FSA. There are several MAS  regulated brokers that can serve as alternatives to Interactive Brokers. These brokers include: 

These brokers operate under MAS regulation. According to MAS rules, they offer leverage up to 30:1 and provide 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.

How Can I Verify If My Broker is regulated by MAS or Not?

To verify if your broker, such as Interactive Brokers, 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.

Frequently Asked Questions ( FAQs)

What is Interactive Brokers?

Founded in New York, USA in 1978 by Thomas Peterffy, Interactive Brokers has grown into a global brand with over 2.1 million clients. It has become one of the leading online trading solutions for traders, investors, and advisors. The brokers give access to over 5000+ tradable assets including forex, CFDs, warrants, ETFs Options, Futures, Mutual Funds, and Bonds. To trade online, IBKR offers WebTrader, FIX API, MobileTrader (MobileApp), and TWS trading platforms.

Is Interactive Brokers Considered Safe?

Yes, Interactive Brokers is considered safe. Though Interactive Brokers is not regulated by MAS, it is regulated by other reputed regulatory authorities including SEC, CFTC, FCA, FSCS, FINRA, FCM,  IIROC, MAS, FSA. These regulations ensure strict compliance with industry standards and provide protection for client funds.