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
Choosing a forex broker starts with one simple question: is the company actually regulated where it says it is? A licence number on a broker's site is a claim, not proof. This article shows how to check that claim on the regulator's own public register before you send any money, and what to look for once you find the entry.
Why Verify the Regulation Before Anything Else
A licence from a major regulator may give real safeguards, such as segregated client funds and, in some countries, a compensation scheme. However, licences change: firms are sold, rebranded, sanctioned or lose their licence. Other companies only hold an offshore company registration, which is not a forex licence at all.
Which Protection a Strong Licence Typically Brings
Rules 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 see the review Compensation Scheme. In the European Union, investor compensation funds provide a smaller level of cover. Most offshore jurisdictions offer none of this, so the same brand can offer very different protection depending on which of its companies opens your account.
Companies Reviewed on FXSharp
The brokers and platforms below each have an editorial review on FXSharp. Many hold licences from recognised regulators, while some also onboard clients through offshore entities with lighter protection. Find out which company would really open your account, and read the review before depositing.
- 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 Verify a Licence on Your Own
Find the full company name and licence number in the legal section of the broker's website 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, if listed, the approved website address.
Warning Signs to Look Out For
Be wary if the register shows a look-alike 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 look at the regulator's warning list for clone firms too. Pressure to deposit quickly, promises of guaranteed returns and requests to pay through unusual channels are additional warning signs, whatever the website claims about regulation.
Verify Again Later On
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. Looking at the register again before a large deposit or a withdrawal costs nothing, and supervisors often publish notices when a firm's status changes.
Overall, a few minutes on the regulator's register may save you from serious losses. Trading in forex and CFDs carries a high risk of losing money, so check before you invest.
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