At InvestinGoal, we adhere to strict standards to ensure an unbiased review process. We conduct our reviews by examining each broker’s offering and performance across 4 key categories. A final rating is produced for each forex broker based on a total of 187 data points. Learn more about our review process and methodology.
A key element for any forex trader if you are getting into the industry, has to be security. This is why you should always try to choose a legitimate forex trading site that is well-regulated by a top-tier regulatory body. These come in many different forms, but one of the most trustworthy, particularly in Asia, is MAS of Singapore.
Here we will take a look at everything that MAS can offer you in terms of protection and security as a trader, and we will also chart some of the best MAS forex brokers you can find anywhere.
Table of contents
What is the MAS?
MAS stands for “Monetary Authority of Singapore”, and as the name suggests, they are the regulatory body of Singapore. They were founded in 1971. This makes them one of the longest running in the sector. Since this time, they have managed to cultivate a highly trusted reputation,and they can now be considered as one of the most respected, and influential regulatory bodies, both in Asia, and around the world. In this respect, regulation from MAS is an excellent addition for any top forex broker.
Top 8 best MAS Regulated Forex Brokers
Here is a rundown of the very best forex brokers you will find, all of whom have MAS regulation already in place.
How the MAS works
MAS, as with other major regulatory bodies, play a key role in many aspects of safety within the industry. Their major duties include preventing fraud within the forex, and wider financial market, from forex brokers or other parties. They also focus on trying to develop these financial markets within the region they oversee.
The bottom line here is that MAS provides for a secure, and regulated trade environment for you as a forex trader. Somewhere you can feel safe, and place your trades in a manner which is made as transparent as possible. To this end, unregulated brokers cannot offer services in the region. They must first be regulated by MAS.
Characteristics and benefits of MAS
With MAS as your regulating body, the key points to note are that the maximum leverage on forex trading is restricted to 20:1. This is quite strict, even more so than CySEC which has a 30:1 restriction. MAS are lighter in some areas though, with bonus offerings from forex brokers permitted, and all trading strategies available to be used by you as a trader.
On the broker side, all funds must be held in segregated accounts. This protects you if the broker got into any financial problems. Negative balance protection is not mandatory, so this is something to be careful of and means that in some cases, you could lose more than you deposit. With that said, many brokers still offer this protection even though it is not officially required.
Prohibitions with MAS
There are no other major prohibitions for you to be aware of under MAS regulation. The only one to remember is that brokers must be MAS regulated to offer services in Singapore, and traders in the area also cannot register with any other broker which is not MAS regulated.
Differences between MAS Regulated and MAS Licensed Brokers
Under some other regulators, it may be possible for brokers to be either regulated, or licensed. In these cases, to be regulated means passing through an entire, and often rigorous process to offer trading services in a country, while being licensed allows services to be offered even though the broker is not directly regulated in that area.
With MAS though, it is not possible to be only MAS licensed. Brokers must complete the whole process and be fully MAS regulated in order to offer their services in Singapore.
How to check if a broker is MAS regulated
It is important to double check and verify that your broker is indeed MAS regulated. If you want to do this, all you will need to do is go to MAS official website and contact MAS authorities who can help you verify. Another way in which you can check the regulation is to look for the MAS Financial Institution Directory within the official MAS website. Using this service, you can type the business name of the broker into the search bar, and you should get some information back.
If you are looking for the business name of your broker, it can often be found at the bottom of their homepage, and it does often differ from the name of the broker.
How MAS intervene in case of financial abuse?
MAS not only regulates forex brokers in Singapore, but also much of the financial industry there. They are very much respected worldwide and have widespread powers to ban any fraudulent operators or those brokers who break the rules.
A strong example of their power has been demonstrated recently with the banning of 4 financial firms, predominantly banks that were offering life insurance and other services. These firms were banned for periods of between 5 and 9 years.
How MAS can help you
If you feel you have been mistreated by a broker, or that they may have broken any of the MAS regulations, then you can and should reach out to the regulatory body. you can contact MAS going on their MAS Official Website. They will follow up an ensure that appropriate steps are taken to protect you as a trader.
About the Author