How to Check a Trading Broker's Licence on the Regulator's Register
How to Check a Trading Broker's Licence on the Regulator's Register
Blog Article
Finding a forex broker begins with one basic question: is the company really licensed in the place it says it is? A licence number on a broker's site is a claim, not proof. This guide shows how to verify that claim on the regulator's own public register before you deposit any money, and what to look for once you locate the entry.
Reasons to Verify the Regulation Before Anything Else
A authorisation from a major regulator can offer real protection, such as client money held separately and, in some jurisdictions, a compensation scheme. However, authorisations can change: companies are sold, rebranded, sanctioned or lose their licence. Other companies only hold an offshore company registration, which is not financial supervision at all.
What Safeguards a Licence Usually Brings
Requirements differ by country, but leading regulators generally require brokers to keep client money in separate bank accounts, hold a minimum amount of capital, report to the regulator and follow conduct rules on marketing and leverage. In the UK, eligible clients of a failed firm may be covered by the Financial Services Compensation Scheme. In the European Union, investor compensation funds offer a lower level of cover. Most offshore jurisdictions offer none of this, which is why the same brand can give very different protection based on which of its companies opens your account.
Brokers Reviewed on FXSharp
The brokers and platforms below each have an independent review on FXSharp. Most hold licences from recognised regulators, while some also serve clients through offshore entities with weaker protection. Check which company would actually open your account, and read the review before opening an account.
- Pepperstone
- copyright
- Interactive Brokers
- Saxo Bank
- Charles Schwab
- Webull
- Admirals
- Axi
- Libertex
- RoboForex
- InstaForex
- PU Prime
- StoneX
- Mitrade
- ADSS
- TD365
- Spreadex
- ProRealTime
- GKFX
- AMP Global
Steps to Check a Licence Yourself
Find the full company name and licence number in the legal section of the broker's site or in its client agreement. Next, go to the regulator's site directly, not through a link from the broker, and search its public register. Look up by company name as well as by number, because some registers do not display licence numbers at all. Match the company name, licence status, licence type and, where listed, the approved website address.
Warning Signs to Look Out For
Be wary if the register shows a similar but different company name, a licence marked as revoked, suspended or surrendered, or a website address that is not the one you are using. Fraudsters often copy the name and licence number of a genuine company, so check the regulator's warning list for clone firms too. Pressure to deposit quickly, promises of guaranteed returns check here and requests to pay through unusual channels are additional warning signs, whatever the website claims about regulation.
Check Once More Over Time
A licence that was active when you opened an account may not stay that way. Brokers merge, sell their client books, move clients to another entity or lose their authorisation. Checking the register again before a large deposit or a withdrawal costs nothing, and supervisors often publish announcements when a firm's status changes.
In short, a couple of minutes on the regulator's register can save you from serious losses. Leveraged trading in forex and CFDs carries a high risk of losing money, and verify before you deposit.
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