Is Interactive Brokers Regulated by the CySEC as of 2026

Interactive Brokers is a forex and CFD broker offering online trading services to traders and investors worldwide. The broker provides 5000+Trading instruments including forex, CFDs, warrants, ETFs Options, Futures, Mutual Funds, stocks, options, and Bonds. It also supports multiple trading platforms and tools such as WebTrader, FIX API, MobileTrader.

Although Interactive Brokers is regulated by several authoritative bodies such as SEC , CFTC ,FCA, FSCS, ASIC , IIROC , FSA,  it is not regulated by CySEC (Australian Securities and Investments Commission). In this article, we will explore Interactive Brokers’ regulations, and its features, and provide a list of alternative brokers that are regulated by CySEC.

Does Interactive Brokers Operate Under CySEC?

No, Interactive Brokers does not operate under CySEC (Cyprus Securities and Exchange Commission) regulation. However, the broker is regulated by several other reputable financial authorities including

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 Interactive Brokers Have?

FCA:

Interactive Brokers 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 Interactive Brokers 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 Interactive Brokers operates securely and fairly, offering a high level of protection and trust for clients in the UK and across Europe.

ASIC

Interactive Brokers 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.

SEC

Interactive Brokers is regulated by the U.S. Securities and Exchange Commission (SEC) under the regulations that apply to foreign financial service providers operating in the U.S. The SEC, established in 1934, is the primary regulatory body overseeing securities markets and protecting investors in the United States.

For brokers like Interactive Brokers, the SEC requires adherence to rigorous standards for transparency, financial stability, and investor protection. This includes regulations for maintaining sufficient capital, safeguarding client assets, and providing clear and accurate financial disclosures. The SEC’s oversight ensures that Interactive Brokers operates with high standards of integrity and reliability for clients dealing with U.S. markets.

IIROC

Interactive Brokers is regulated by the Canadian Investment Regulatory Organization (CIRO). CIRO, formed in 2023 through the merger of IIROC (Investment Industry Regulatory Organization of Canada) and the MFDA (Mutual Fund Dealers Association), oversees all investment dealers and trading activity in Canada.

CIRO requires Interactive Brokers to meet strict standards for financial stability, transparency, and investor protection. This includes maintaining sufficient capital, safeguarding client funds by segregating them from company assets, and adhering to regular reporting and compliance checks. CIRO’s regulation ensures that Interactive Brokers operates securely and responsibly, providing a trusted trading environment for Canadian clients.

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.

Best CySEC Regulated Forex Brokers: Alternatives to Interactive Brokers

Interactive Brokers 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  SEC, CFTC, FCA, FSCS, ASIC, IIROC, FSA. There are several CySEC  regulated brokers that can serve as alternatives to Interactive Brokers. 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 Interactive Brokers, 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 Interactive Brokers?

Interactive Brokers was a well-known stockbroker offering a user-friendly electronic trading platform for various financial assets like common and preferred stocks, futures, ETFs, forex, options, mutual funds, fixed-income investments, margin lending, and cash management services. It made money through interest on margin balances, commissions, and payments for order flow.

Founded in 1975 as First Omaha Securities, the company took a major step in 2006 by acquiring the U.S. operations of TD Waterhouse from TD Bank Group, rebranding itself as Interactive Brokers. This deal also gave TD Bank Group a substantial ownership stake. In 2020, Charles Schwab Corporation acquired Interactive Brokers, and by 2024, all accounts were transitioned to Schwab

Is Interactive Brokers Considered Safe?

Yes, Interactive Brokers is considered safe. The broker is regulated by multiple top-tier regulatory authorities, including SEC , CFTC ,FCA, FSCS, ASIC , IIROC , FSA. It offers negative balance protection and holds client funds in segregated bank accounts. 

Does Interactive Brokers Offer Negative Balance Protection?

Yes, Interactive Brokers 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 Interactive Brokers regulated in Cyprus?

No, Interactive Brokers is not regulated in Australia. The broker is not regulated by CySEC, the Australian regulator. However, it accepts Australian clients under its global entity. Interactive Brokers is regulated by several other authorities, including SEC , CFTC ,FCA, FSCS, ASIC , IIROC , FSA.