10 Best Forex Brokers With No ESMA Regulation (Top List)

The introduction of the European Securities and Markets Authority (ESMA) regulation in 2018 has had a monumental effect on traders in the EU, which has cut leverage extensively to 1:30 and imposed limitations on trading for retail traders. While these regulations were meant to protect the traders, they ended up limiting their profitability and flexibility in their strategies.

However, EU traders can still access high leverage by working with non-EU regulated brokers. As not all brokers cater to this, identifying a suitable broker that accepts EU clients requires in-depth analysis. 

After thorough research and testing, WR Trading presents a guide to the top 10 forex brokers outside ESMA regulation that accept EU traders:

List and Comparison of the Best Brokers Without ESMA Regulation:

#1 StarTrader

StarTrader takes the number one position in our review because of its outstanding jurisdiction regulation and favorable trading terms of leverage up to 1:1000. During our evaluation, we discovered that StarTrader is regulated by a number of regulators, including the Financial Services Authority (FSA) of Saint Vincent and the Grenadines and the Financial Services Commission (FSC) of Mauritius.

Key Facts About StarTrader:

Feature	StarTrader
ESMA Regulation	No
Regulation	FSCA, FCA, SCA, ASIC, FSA (Saint Vincent), FSC (Mauritius)
Maximum Leverage	Up to 1:1000
Minimum Deposit	$100
Available Assets	Forex, Indices, Commodities, Stocks, ETF, Metals, Shares
Trading Platform	MetaTrader 4, MetaTrader 5, WebTrader
Spreads	From 0.0 pips (ECN), from 1.3 pips (Standard)
Commission	$7 (ECN), $0 (Standard)

#2 Vantage

Coming as the second broker without EMSA regulation on our list is Vantage Markets. This is one unique broker who has found a delicate balance between powerful trading platforms, competitive spreads, and excellent customer care. One feature that stood out to us about Vantage is the presence of a multi-regulation approach, which offers traders a solid level of regulatory safety. 

Key Facts About Vantage:

Feature	Vantage
ESMA Regulation	No
Regulation	ASIC, VFSC, CIMA, SIBL, FSCA
Maximum Leverage	Up to 1:500 (varies by account type and instrument)
Minimum Deposit	$50 (Standard, CENT and RAW), $10,000 (Pro ECN)
Available Assets	Bonds, Energies, Forex, Indices, Energy, Gold/Silver, Commodities, Shares, ETFs, Stocks, Oil
Trading Platform	Tradingview, ProTrader, MetaTrader 4, Vantage FX App, MetaTrader 5
Spreads	From 0.0 pips (Raw ECN, CENT, and Pro ECN accounts), from 1.1 pips (Standard STP)
Commission	$3 (Raw), $0 (Standard), $1.50 (Pro ECN) per round lot, from $0 to $3 (CENT)

#3 BlackBull Markets 

BlackBull Markets stands out as our number three choice at WR Trading for EU traders seeking a non-ESMA-regulated broker. This New Zealand-based broker operates outside the European regulatory framework, which means traders can access the high leverage that ESMA restrictions have taken away from them. The fact that they offer leverage up to 1:500 compared to the ESMA limit of 1:30 makes a significant difference in traders’ trading potential.

Key Facts About BlackBull Markets:

Feature	BlackBull Markets
ESMA Regulation	No
Regulation	Financial Markets Authority (FMA) New Zealand, New Zealand Financial Markets Authority(NZ FMA).
Leverage	Up to 1:500
Minimum Deposit	$0 (Standard), $2,000 (Prime), $20,000 (ECN Institutional
Available Assets	Forex, Indices, Commodities, Shares, ETFs, Cryptocurrencies, Metals, Equity Indices, Futures
Trading Platform	MetaTrader 4, cTrader, TradingView, MetaTrader 5, Blackbull copyTrader, Blackbull invest
Spreads	Standard: from 0.8 pips, Prime: from 0.1 pips, Institutional: from 0.0 pips
Commission	$0 (Standard), $4 (ECN Institutional), $6 (ECN Prime) per round lot

#4 Moneta Markets

Moneta Markets takes the fourth position on our list because it focuses on providing high-proxy services with leverage up to 1:1000 to retail traders. Their massive investment in technological advancements is seen through their higher speeds of execution rates as well as a stable trading environment, which makes them a good alternative to traders within the EU region who no longer wish to operate with ESMA-regulated traders.

Key Facts About Moneta Markets:

Feature	Moneta Markets
ESMA Regulated	No
Regulation	SLIBC, FSCA
Maximum Leverage	Up to 1:1000
Minimum Deposit	$50 (Prime and Direct), $20,000 (Ultra)
Available Assets	Forex, Indices, Commodities, Shares, ETFs, Bonds, Share CFDs, Bonds, Metals, Energy, Crypto CFDs, and Index CFDs
Trading Platform	AppTrader, CopyTrader App, MetaTrader App, MT4 WebTrader, MetaTrader 4, ProTrader, MetaTrader 5
Spreads	From 0.0 pips (Prime ECN and Ultra ECN), from 1.2 pips (Direct STP)
Commission	$1(Ultra), $3(Prime), $0 (Direct STP)

#5 IC Trading 

IC Trading is fifth on our list due to its competitive trading environment. The broker’s approach to risk management caught our attention during the evaluation. They maintain proper segregation of client funds and provide negative balance protection, which is crucial for traders when trading with higher leverage outside the ESMA framework conditions. The FX Broker offers RAW Spread accounts which are perfect for any type of Forex trading.

Key Facts About IC Trading:

Feature	IC Trading
ESMA Regulated	No
Regulation	Financial Services Commission of Mauritius (FSC)
Maximum Leverage	1:500
Minimum Deposit	$200
Available Assets	Forex CFDs, Indices, Commodities, bonds, stocks, Cryptocurrencies
Trading Platform	WebTrader, MetaTrader 4, MetaTrader 5, cTrader
Spreads	From 0.0 pips (Raw Account) and 0.8 pips (Standard Account)
Commission	$3.5 (Raw MetaTrader), $3 (Raw cTrader), and $0 (Standard)

#6 PU Prime

Sixth on the list is PU Prime with its Mauritius regulation and focus on providing high-leverage trading opportunities. At WR Trading, we were able to determine that they are well-suited to EU based traders who are in the marketplace looking to find alternatives to ESMA regulated brokers. PUPrime also tailored their account types to suit the various needs of traders, beginners and experienced traders alike. 

Key Facts About PU Prime:

Feature	PU Prime
ESMA Regulated	No
Regulation	ASIC, FSCA, FSC, FSA
Maximum Leverage	1:1000
Minimum Deposit	$50
Available Assets	Forex, Indices, Commodities, Cryptocurrencies, Bonds, Shares, Metals
Trading Platform	WebTrader, MetaTrader 4, MetaTrader 5, PU Prime App
Spreads	0.0 pips (Prime accounts), 1.3 pips (Standard Accounts)
Commission	Standard Account: No commission, Prime accounts: $7.0 per lot

#7 VT Markets

VT Markets secures seventh spot with its professional and comprehensive approach to serving EU traders. The broker stands out with its Australian regulation and top-notch customer support. What makes the broker stand out is the regulation inside Australia and the high quality of its customer service. VT Markets focuses on educating traders, providing daily market analysis and informative webinars that help traders be aware of the global market trends.

Key Facts About VT Markets:

Feature	VT Markets
ESMA Regulated	No
Regulation	FSC Mauritius, FSCA
Maximum Leverage	Up to 1:500
Minimum Deposit	$100 (Standard STP and RAW ECN), $50 (CENT accounts)
Available Assets	Forex, Indices, Commodities, Shares, Cryptocurrencies, Indices, ETFs, CFD Bonds, CFD Shares, Precious Metals, Energies
Trading Platform	MT4, MT5, WebTrader, Mobile App, TradingView
Spreads	0.0 pips (Raw ECN, CENT ECN), 1.2 pips (Standard STP) and 1.1 pips (CENT STP)
Commission	$6 (ECN), $0 (STP) per round turn

#8 OnFin

OnFin earns the eighth spot with its Mwali regulation and competitive trading environment. We found their platform to be user-friendly and their trading conditions to be attractive for EU traders seeking higher leverage. During our analysis, we found its focus on providing transparent pricing and fair execution very impressive. The broker maintains detailed execution statistics and provides regular updates on their trading conditions, which builds trust.

Key Facts About OnFin:

Feature	On Fin
ESMA Regulated	No
Regulation	Mwali International Services Authority (MISA)
Maximum Leverage	Up to 1:3000
Minimum Deposit	$1
Available Assets	Forex, Stocks, Currencies, Commodities, Cryptocurrencies, Indices,
Trading Platform	MetaTrader 4, MetaTrader 5
Spreads	From 0.4 pips
Commission	$4 per lot (Mini Account), $0 (ECN)

#9 PrimeXBT

Our ninth choice in our review is PrimeXBT, which has its own unique model of trading multiple assets, both in cryptocurrency and traditional forex. This is a diversification potential that EU traders will largely find beneficial in expanding their trading boundaries to extend beyond the traditional forex. Their leverage is just as good, it goes as far as 1:1000 and they also bring institutional quality trading tools to retail traders. 

Key Facts About Prime XBT:

Feature	PrimeXBT
ESMA Regulated	No
Regulation	Financial Services Commission of Mauritius (FSC), Banco Central de Reserva (BCR), South Africa (FSCA), Financial Services Authority of Seychelles (FSA)
Maximum Leverage	1:1000
Minimum Deposit	$1
Available Assets	Forex, Commodities, Indices, Cryptocurrencies, shares
Trading Platform	PrimeXBT WebTrader, MetaTrader 5, PrimeXBT App
Spreads	From 0.1 pips
Commission	No commission on forex, varies by asset class

#10 Pocket Option

Pocket Option completes our top 10 list, leveraging its binary options expertise to deliver a compelling forex trading experience for EU traders. Our evaluation revealed their user-friendly platform where you can just sign up in a few seconds and competitive trading terms, showcasing their potential in the forex market.

Key Facts About Pocket Option:

Feature	Pocket Option
ESMA Regulated	No
Regulation	MISA
Maximum Leverage	1:1000
Minimum Deposit	$5
Available Assets	Forex, Binary Options, Cryptocurrencies
Trading Platforms	Mobile App, MT4, MT5
Spreads	1.1 pips
Commission	No commission

What are the ESMA Regulations and Rules for Brokers?

The European Securities and Markets Authority (ESMA) is a regulatory body in the European Union that oversees the financial markets in the European Union. In 2018, ESMA made some significant alterations to how EU-based forex brokers and CFD brokers would now have to conduct their business on behalf of their retail traders in the EU.

These laws were enacted to curb the retail trader losses and introduce several significant restrictions. The most drastic change was the implementation of leverage limits. Under ESMA rules, retail traders are limited to a leverage of 30:1 for major currency pairs, 20:1 for non-major currency pairs, gold and major indices, 10:1 for commodities other than gold and non-major equity indices, 5:1 for individual equities and 2:1 for cryptocurrencies.

While professional traders can still access significantly higher leverage, they must meet at least two of the following criterias to qualify:

What is a Broker without ESMA regulation?

An unregulated ESMA broker is a broker that offers forex or CFD trades and is not registered in the European Union. They are not bound by the regulations placed on them by the ESMA concerning leverage and bonus offers, and other trading conditions.

These brokers are usually regulated by financial regulators in their home countries e.g., the Financial Markets Authority (FMA) in New Zealand, the Australian Securities and Investments Commission (ASIC) in Australia or the Financial or any other regulatory authority in any part of the world. 

Is it Legal to Use a Broker With No ESMA Regulation as an EU Trader?

Yes, it’s completely legal for EU traders to open accounts with brokers with no ESMA regulatory framework. The traders are at liberty to choose where they would wish to trade, and there are no laws preventing the traders from opening accounts with duly regulated brokers in other jurisdictions. Note that no EU customer protection will apply with these brokers.

Nonetheless, it should be noted that the traders are at liberty to trade with these brokers but these brokers cannot market their company services aggressively to the EU residents due to the hurdles of regulations in their operations.

Are No ESMA Forex Brokers Regulated?

Yes, all the non-ESMA forex brokers mentioned here are regulated by financial regulators in their respective jurisdictions. Regulation plays an important role in ensuring that the money held by clients is preserved and that the brokers themselves act within the agreed financial norms.

The key step is to select which brokers to use by selecting a reputable authority to regulate them, even those not regulated by ESMA. That guarantees traders the best of two worlds: increased leverage and competitive trading terms and conditions, without being stripped of regulatory protection of investments.

How Secure Are No ESMA Brokers?

Brokers outside the ESMA are equally safe as those regulated by the ESMA, as long as they have holdings in the higher reputation financial authorities in their countries. The level of security is influenced by the regulatory framework under which they operate.

Many of the brokers you will find on our list have segregated client accounts, negative balance protection and strict financial reporting standards. They also have indemnity insurance and sufficient capital reserves to cover investor funds.

What Are Secure Regulations Besides the ESMA Regulator?

There are several tiers of regulation that we consider secure and reliable for forex brokers:

• Tier 1: These regulators include the United States’ Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA), Australia’s ASIC, the United Kingdom’s Financial Conduct Authority (FCA), and New Zealand’s FMA.
• Tier 2: They provide strong regulatory frameworks with good client protection measures. They include South Africa’s Financial Sector Conduct Authority (FSCA), Japan’s Financial Services Agency (FSA), and Singapore’s Monetary Authority of Singapore (MAS). 
• Tier 3: While these are still legitimate regulatory bodies, they typically have less stringent requirements than Tier 1 and Tier 2 regulators. They include Cyprus’ CySEC, Vanuatu’s VFSC, and the Seychelles’ FSA. 

Are There No ESMA Brokers Offshore?

Yes, from the perspective of EU traders, non-ESMA brokers are considered offshore since they operate outside the European regulatory jurisdiction. However, this doesn’t mean they’re unregulated or less secure.

Many of these “offshore” brokers are regulated by highly respected financial authorities in their home countries and maintain the same professional standards as European brokers. The term “offshore” simply refers to their location outside the EU regulatory framework.

Do You Need To Do KYC On No ESMA Forex Brokers?

Yes, reputable non-ESMA forex brokers require Know Your Customer (KYC) procedures just like their ESMA-regulated counterparts. This includes providing identification documents, proof of address, and sometimes proof of income.

However, some unregulated brokers may not require comprehensive KYC procedures, but we strongly recommend avoiding such brokers as they often lack proper regulatory oversight and may not provide adequate protection for your funds.

Do You Need to Pay Taxes When Trading With No ESMA Forex Brokers?

Yes, you need to pay taxes on your trading profits regardless of which broker you use. Tax obligations are determined by your country of residence, not by the broker’s location or regulatory status.

As EU residents, we’re required to declare our trading profits and pay taxes according to our local tax laws. It’s important to keep detailed records of all trading activities and consult with a tax professional to ensure compliance with local regulations.

How High is the Leverage on Brokers Without ESMA Rules?

Non-ESMA brokers typically offer much higher leverage than the ESMA limits. While ESMA restricts major currency pairs to 1:30, many non-ESMA brokers offer leverage up to 1:500 or even 1:1000 for major currency pairs.

For example, BlackBull Markets offers up to 1:500 leverage, while PU Prime provides up to 1:1000 leverage, or OnFin with 1:3000 leverage. These higher leverage ratios allow traders to control larger positions with smaller amounts of capital. Though it’s important to remember that higher leverage also increases risk.

How To Choose The Best Broker Without ESMA Regulation

When choosing a non-ESMA broker, we recommend following these essential steps:

What Are The Pros And Cons Of No ESMA Brokers?

Here are some pros and cons of brokers without ESMA:

What Are The Pros and Cons of ESMA Regulated Brokers?

Here are the pros and cons of ESMA Regulated Brokers:

Conclusion: No ESMA Forex Brokers Give the Chance for High Leverage

After months of research and testing at WR Trading, we’ve concluded that non-ESMA forex brokers provide EU traders with valuable alternatives to the restrictive ESMA regulations. These brokers often offer leverage as high as 500:1 or even 1000:1, ultra-low spreads starting from 0.0 pips, and access to a broader range of trading instruments and platforms.

In our evaluation, we considered key factors such as trading conditions, execution speed, platform reliability, customer support, and regulatory oversight. Many non-ESMA brokers are licensed by reputable authorities like ASIC (Australia), FSA (Seychelles), or FSC (Mauritius), offering comparable fund protection and security to ESMA-regulated brokers.

However, it’s essential to approach these opportunities with caution and responsibility. The high leverage offered by non-ESMA brokers requires disciplined risk management and a thorough understanding of the markets.